It had seemed like a dream. You got to set your own hours, work only when and as much as you wanted, set your own rates, be your own boss. But now the dream feels more like a nightmare. You’re out hustling day and night, 24/7, 365. You’re supporting yourself and your family, but the perks are gone — and so is the safety net. It’s the new gig economy, and it looks like the bloom is off the rose.
What is the Gig Economy?
The gig economy is the new catchphrase referring to those who earn their living primarily through freelance work. “Gigging” today is perhaps more popular than it has ever been, with the gig economy growing dramatically in recent years — thanks in no small part to the shakeup of the Great Recession. Displaced workers found themselves preferring to rely on their own wits and their own efforts, rather than put their trust in some faceless corporation. Having discovered what it felt like to be nothing more than expendable servants of the bottom line, many of these workers determined to strike out on their own, exchanging the mantle of the employee for that of the entrepreneur.
According to recent estimates, nearly 57 million Americans are now doing some kind of freelance work, whether as a supplement to their primary, full-time job or as their only source of income. Further, the gig economy in the United States is now estimated to generate more than $1 trillion dollars for the national economy, and in the next ten years, more than 50% of American workers are expected to be working freelance at least some of the time.
But with the great good of this new, more independent form of work comes a lot of bad. And the harms of the gig economy, at least as it now operates — largely unregulated — are profound, wide-ranging, and long-lasting. The detrimental effects of the gig economy, in fact, are taking their toll not only on the workers themselves, but also on families, communities, and on the integrity and power of our labor laws and other essential worker protections.
Working Without a Net
For all of the advantages of self-reliance and self-determination that come with gig work, the sacrifices required to be successful are immense. All too often, freelancing means giving up the social safety net that has been in place to protect workers for more than a century. And these are no small matters.
What we’re talking about, in fact, are those provisions meant to protect you and your family in your old age, in times of illness, or in the face of other unforeseen but life-altering events. If you’re freelancing, chances are you will not be eligible for paid vacation, retirement, workers’ compensation, or unemployment benefits. Even more, you’re probably going to have to buy your own private health insurance — and that sure ain’t cheap.
Outside the Law
Working in the gig economy doesn’t only mean that you’re forced to forfeit the benefits to which most full-time employees are entitled, it also means giving up the most basic labor protections, from ensuring a livable minimum wage, restrictions on hours worked per day or week, or even on maintaining a safe and healthy working environment.
And because a lot of freelance work takes place online, from advertising services and booking gigs to doing some or all of the work online, you’ll also be responsible for your own cybersecurity. That’s a task that challenges even the largest, richest, and most powerful corporations in the world.
If that’s not enough, you’re also going to need to take care of your own taxes, and you’ll probably be subject to the higher rates independent contractors or “1099 workers” have to pay. You’re also required to pony up for your business taxes at least once each quarter, rather than dealing with them once a year, as with the standard federal income tax.
What’s To Be Done
The issues surrounding gig work may sound daunting because they are. But that doesn’t mean freelancers are helpless. There are important things that can and must be done to protect workers in this burgeoning industry. For example, a powerful movement to redefine the legal definition and status of the independent contractor is emerging. Likewise, increasing efforts are being made to unionize traditionally marginalized workers, with a particular focus on freelancers, whose lack of connection with and access to other workers has been one of the greatest sources of their exploitation.
The Takeaway
At first blush, the gig economy seems to be the path to ultimate freedom for the modern worker. All too often, though, gigging means chaining yourself to long hours, low pay, and profound financial uncertainty. It means living without the most basic rights and protections that full-time employees now enjoy. It doesn’t have to be this way, however. In fact, justice demands change, and that includes not only redefining the legal status of the independent contractor and extending the reach of the labor unions to embrace and empower the freelance worker.
Photo Credit
Photo from pixabay – creative commons
Guest Author Bio
Jori Hamilton
Jori Hamilton is a writer and journalist from the Pacific Northwest who covers social justice issues, healthcare, and politics. You can follow her work on twitter @HamiltonJori, and through her portfolio at Writer Jori Hamilton.
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