If you look back two years, 36% of U.S. workers were participating in the gig economy as their primary or secondary job, according to Gallup. The COVID-19 pandemic has forced a rapid acceleration in demand for gig workers as companies are exploring a monumental shift in how they approach hiring.
From Instacart shoppers, to Amazon Flex drivers, to GigSmart workers, these independent contractors are embracing the idea of gig work not only as a way to supplement their income, but as a full-time career path. Whether it be out of necessity in the face of pandemic, or simply as a lifestyle choice, freelance workers, consultants, handymen, drivers and the likes are reshaping the workplace.
A recent study commissioned by GigSmart and conducted by OnePoll fielded amid the pandemic revealed a clear trend: scheduling flexibility has become an “absolute necessity” when job searching. The gig economy delivers worker flexibility and unlocks financial potential.
Is the 9 to 5 Dead?
With millions of displaced American workers seeking additional ways to generate income, the gig economy offers a viable solution. Gig work driven by digital platforms is redefining how we do pretty much everything, from delivering food, to catering a black-tie event, to providing homestays, to filling orders in a warehouse.
With abundant flexible options, more people than ever are tapping into the on-demand market to find additional work to generate income. According to the study, a staggering 64% of respondents are likely to consider working a side gig or monetizing a side hustle.
In light of these uncertain times, two-thirds classified their side hustle as a “financial necessity” due to COVID. The insecurity and instability of the economy has forced individuals to get creative, leveraging their spare time, talents, or both to generate additional income through profitable side hustles.
Survey data also revealed that 65% of respondents would stop working full-time if a side hustle could support them financially.
One thing is certain: Americans are looking for ways to monetize their skills, and the number of them who wish to do so as their primary source of income is rapidly increasing.
In-demand Services and Skills
Despite a record high unemployment rate, certain industries are experiencing increased demand for temporary workers. These essential industries include warehousing, storage, distribution, and transportation.
As a gauge, Amazon announced they will hire another 100,000 people to help pack, ship, or sort orders, working in part-time and full-time roles, to keep up with a surge of online purchases. GigSmart has also experienced record-breaking usage. The average number of gigs completed per day has increased 25% since the virus was declared a national emergency in the United States in March.
According to a recent study, the following positions have experienced a large increase in demand on temporary staffing sites:
- Warehouse workers
- Sanitation workers
- Food assembly workers, preparers, and chefs
- Construction foremen, helpers, and flaggers
- Manufacturing workers
- Retail workers, especially stockers and truck unloaders
- Waste management workers
- Skilled trade workers such as carpenters, welders, and electricians
Unsurprisingly, there has also been a surge in residential project requests. In response to the amount of time people are spending at home, there seems to be a larger motivation to tackle home improvement projects that might exceed the casual DIY-ers ability. Think pool installations, deck build outs, landscaping upgrades, kitchen renovations, and more.
Increased Hourly Wages
Some workers are seeing a substantial rise in their hourly wages during the coronavirus pandemic. The skills with the largest gains include furniture movers (54%), warehouse laborers (46%), and handymen (42%), all of which are seeing hourly pay bump increases between $5-$8.
Retail giants like Walmart, Amazon, Costco also provided a temporary $2-an-hour raise during difficult months. Target just announced their hourly boost as permanent, bringing their starting wage to $15 an hour.
These pay increases come about as companies and individuals scramble to hire to keep up with the rise in consumer demand.
The Labor Market Is Evolving and It’s Evolving Quickly
As the economy rebounds, one of its biggest trends—the “gig economy”—is emerging with staying power. In the midst of a global pandemic, the number of companies exploring the gig economy model is growing, and conveniently, so is the number of people entering into it.
Companies that incorporate flexible labor sources, like contractors or gig workers, into their staffing strategies will certainly benefit as this shift continues. Businesses using temporary labor can quickly grow and shrink their workforce, access specialized talent, and save money by reducing the overhead and associated costs that accompany hiring full-time workers. Two-thirds of major companies are already using freelance contracts to lower their labor costs.
The advent of gig economy platforms, both broad and niche alike, coupled with technological advancements in mobile app marketplaces, makes it easy to find flexible work fast, or to rapidly hire temporary, qualified professionals.
A transition to a more agile workforce can help businesses survive and thrive in this new environment. Whether to help respond to spikes in demand, focus on workplace re-opening, or transitioning into a post-COVID world, the ability to be agile and fluid will be key for many businesses.
When will you take on a side gig or hire temporary workers?
