Gig economy definition: What is the gig economy?

It’s been a while since being gainfully employed meant working 9 to 5 for 40 hours a week. More and more workers are entering the gig economy, whether they are looking for ways to earn extra money or relying on gig economy jobs for their livelihood.

What is the gig economy? The definition is evolving. Thanks to the world of technology, many people will immediately think of app-based jobs like food delivery services, grocery shoppers or ride shares as gig economy examples. They’re not wrong, but the gig economy definition encompasses much more than that.

It can be freelance work or project-based jobs where people are working for themselves instead of an employer. It includes direct selling ventures where people earn money from selling products directly to consumers. It also includes influencers who create content on social media to support brands or sell products.

So, how big is the gig economy? In the U.S., there are an estimated 59 million people with gig economy jobs, or just over a third of all U.S. employees. And that number is expected to grow to more than 85 million by 2027. In Canada, about 8.75 million adults, or 28%, have gig economy jobs.

Ways to make extra money

Some people juggle their various gig work to make it their primary source of income. But gig economy jobs are also popular for those wondering how to make extra income while working full time. In fact, nearly three-fourths of the 8.75 million Canadians working gig economy jobs say they do it in addition to their full-time work.

The flexibility that comes from working for yourself makes gig economy jobs ideal ways to make extra money.

Remote gig work

Many people are looking for remote gig work, something they can do from their home or from anywhere really. There are several opportunities for remote gig work depending on your skills and access to tech equipment.

If you’re a wizard with words, you can pick up editing or writing jobs. If you’re a secret culinary genius, artist or have some other talents, you could offer video lessons online. Or maybe you have mad typing skills and could pick up work from transcription companies. Language companies are often looking for teachers and tutors, as well.

You can also get paid to take surveys on your own time through various websites or apps. It may only be a few dollars a day, but that can help support a daily latte habit.

How to make extra income while working full-time

If you’re wondering how to make money on the side of your full-time job, you need to look for gig economy jobs with flexible hours. If you work with clients in different time zones, some of the remote gig work mentioned above can fit outside your work hours.

If you choose app-based jobs like deliveries, ride shares, etc., you choose when you work and how long your shifts are so they don’t conflict with your full-time work. Direct selling opportunities also work well with full-time work. Most can be managed from an app and you can often sell to customers online or in person.

Starting your own direct selling business definitely takes hard work, but it’s among the many ways to make extra money while working around various schedules.

Legit side hustles: Evaluating gig economy jobs

Technology makes the number of side hustle ideas seem endless. But that same technology can also make it easy to get taken in by bad actors who may want to steal your personal information or your money.

It’s important to do your research to see if it is a legitimate opportunity. Check reviews and forums as well as organizations like the Better Business Bureau. Find out how long the company has been around. And be very cautious of sharing personal or financial information.

You should also read the fine print and terms of service, or at least search around for articles done by people who have read the fine print.

Gig economy pros and cons

Gig economy jobs can be great ways to make extra money. We talked about the flexibility of being able to choose when and where you work or with whom. You get to set your own hours. Many side hustles have low start-up costs and carry little risk to get involved, too.

But it’s good to get the whole picture. Gig economy jobs are missing some of the perks that come with traditional employment. Rarely do gig economy jobs offer benefits like health insurance, retirement contributions or profit sharing.

And when it comes to gig economy worker protection, the list is very small compared to full-time workers who can benefit from minimum wage, sick pay, overtime or workers’ compensation. And depending on how much is earned, gig workers also might be responsible for paying quarterly taxes or completing other extra paperwork.

For some people, it’s worth it to add that side hustle and the extra income that comes with it. For others, they may be happy with only a traditional 9-to-5 job. You just need to take a look at your goals and figure out a way to get there that works for you.