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The Emergence of the “Gig Worker”

What they will have to know to adapt and survive in the gig economy.

Photo os a phone with the words "gig" in search screen

By Dr. Rodney Luster

The morning begins...

Ah, the dream of giving up the 9 to 5 work week and simply doing a job on our terms where there is no boss, unlimited autonomy, no organizational politics to put up with, and no fighting for raises during annual review time. Yes, the entrepreneurial dream takes hold of the senses. I can envision it now as I take in the scent of new leather from a well-crafted satchel thrown over one shoulder, embarking on a wonderful day under the tapestry of blue skies! The day begins, however, first by starting things off at the nearest coffee shop.

Man sitting looking at computer in a coffee shop drinking coffee

 

Along the way, I pass the quaint bistro where I will soon meet the first of my new clients. The patio, as I drive by the place, is set with wrought iron tables and flowers that glaze the outside of the establishment like an old French Café. But before that, a latte awaits a little further down the way! Once there, I order the usual and make my way over to a nice window seat table. I pull out the old laptop and notice out of the corner of my eye the steam wafting from my beverage which always gives me such a good feeling. While waiting for things to boot up, I sip my drink slowly and eventually begin taking a few notes, enjoying the subtle and gentle tapping of the keys that mingle with the low-hum sounds of the coffee shop. It is quite the image, but not necessarily the reality.

The gig economy is defined as “the workforce of people engaged in freelance and side-hustle work.”

McKinsey and Company (2023)

The gig economy is defined as “the workforce of people engaged in freelance and side-hustle work.”

As I remember the term “gig,” I am reminded of its emergence from the 20th-century Jazz era as slang for "landing a single performance" in perhaps a jazz club. The term, however, has taken on new meaning over the years. Sociologically, the duality of patterning inherent to human language allows for the adoption of new meanings in the evolution of a word. As such, today, the word “gig” is also applicable to short-term or temporary employment across a span of industries where one may seek work, bid on contracts, and ultimately complete the work that was contracted. All this amidst attempting to form, sustain, or disband professional relationships in tandem.

The term “Gig-worker” or “Gigger” has also been used by media to describe one of the prominent seminal events in our culture today, which is the advent of a new way of working and living in what has been referred to as the “Gig Economy (Kuhn, 2016).” The gig economy, as defined by McKinsey and Company (2023), a strategy and management consulting firm, is “the workforce where people are engaged in freelance and side-hustle work.”

Piece-rate pay

Photo of a woman at work handing papers to someone and smiling

 

To this end, the gig economy is a form of “piece-rate” pay that links pay directly to the delivery and quantity of goods produced. This was evidenced in the 1980’s and 90’s, otherwise known as the formative “pre-gig era” (Davis & Hoyt, 2020). However, in today’s digital platform era, such delivery transcends what we used to think of as “material goods” produced, where effort and now quality of goods are highly relevant to the hiring of a “gig-worker” or freelancer (Ashford et al. 2018).

Gigging has tremendous variation and dimension to it, such as context, which determines quite a bit – especially for those who are highly skilled versus lower-skilled gig workers who must survive by patching work assignments together. This varying “lay of the land” context is further driven by temporal, physical, and business attachments to organizations (Spreitzer et.al., 2017). Although some independent contractors may have a high degree of flexibility, others are at the mercy of those who employ them or the proximity of time between the next actual "paying" gig (Barley & Kunda, 2006). Gigging may take many forms of process such as ride-hailing or delivery driving [think Uber, Lyft or Doordash] to online development and content creation where a gig worker might use services like Guru.com and Fiverr.com to gain contractual work.

Gigging may take many forms of process such as ride-hailing or delivery driving [think Uber, Lyft or Doordash] to freelance developers and content creators.

Rodney Luster, Ph.D.

Gigging may take many forms of process such as ride-hailing or delivery driving [think Uber, Lyft or Doordash] to freelance developers and content creators.

Roots of the gig economy

The emergence of the gig economy has its roots also in the “Great Recession” and the Sharing economy, a time when people made do with what they had, and where, instead of going out and buying new things, may have borrowed them from a nearby neighbor.

Today, such brief and needed exchanges have mushroomed into a business pioneering opportunity for many.

The "surge"

One of the bigger surges occurred during the pandemic in early 2020, which ushered in the importance of being able to rely on gig workers more than ever before to deliver food and services without many of the general public having to step foot in a store or company. Now, the shift moves yet again in an interesting direction as many in the tech industry are experiencing what is termed the “Great Betrayal.”

This represents another push into the “gig” network, as those in tech who were hired due to demand during the pandemic have been left with a sudden loss of employment as companies pull back on their needs post-pandemic. As such, in the world of research, we are perhaps beginning to learn a lot more these days about what it means to make a living as an independent contractor or “gig worker.”

According to McKinsey’s 2022 American Opportunity Survey, an estimated 58 million Americans, now identify as 'independent workers.'

McKinsey’s 2022 American Opportunity Survey

According to McKinsey’s 2022 American Opportunity Survey, an estimated 58 million Americans, now identify as 'independent workers.'

From data obtained within McKinsey’s 2022 American Opportunity Survey, 36 percent of those employed who responded to their survey, an otherwise estimated 58 million Americans, now identify as “independent workers.” That is quite staggering when you consider it. But all is not sunshine and healthy living in the gig economy. We are just now beginning to study the deeper experiences of gig workers and how they work and cope in a new era of freelance activity.  Of course, gig work has both predictable and unpredictable challenges associated with it from things like financial precarities, existential loneliness, emotional angst, difficulty securing work, maintaining relationships, marketing, health issues, and more. But these things, if managed properly, do have to lead to such precarious outcomes.

In Part II of this blog, we will look at what will be required of the gig worker in coming years and why it is important for their sustainability.

References

Ashford, S. J., Caza, B. B., & Reid, E. M. (2018). From surviving to thriving in the gig economy: A research agenda for individuals in the new world of work. Research in Organizational Behavior38(0191-3085), 23–41. https://doi.org/10.1016/j.riob.2018.11.001

Barley, S. R., & Kunda, G. (2006). Contracting: A New Form of Professional Practice. The Academy of Management Perspectives, 20(1), 45–66.

https://doi.org/10.1016/j.puhe.2019.10.021

Davis, M. E., & Hoyt, E. (2020). A longitudinal study of piece rate and health: evidence and implications for workers in the US gig economy. Public Health180, 1–9. https://doi.org/10.1016/j.puhe.2019.10.021

Kuhn, K. M. (2016). The rise of the “gig economy” and implications for understanding work and workers. Industrial and Organizational Psychology: Perspectives on Science and Practice, 9(1), 157–162. https://doi.org/10.1017/iop.2015.129

McKinsey & Company. (2023, August 2). What is the gig economy? | McKinsey. https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-the-gig-economy

Spreitzer, G. M., Cameron, L., & Garrett, L. (2017). Alternative Work Arrangements: Two Images of the New World of Work. Annual Review of Organizational Psychology and Organizational Behavior4(1), 473–499. https://doi.org/10.1146/annurev-orgpsych-032516-113332

ABOUT THE AUTHOR

Rodney Luster, Ph.D., LPC

Bio

Dr. Rodney Luster has been with the University since 2012. Rodney Luster is the Senior Director of Research Strategy, Innovation, and Development for the Research Center Enterprise (RSE) within the College of Doctoral Studies. In this role Dr. Luster helps lead innovation in research, as well as connecting the pragmatics of research to industry. A major part of this role is communicating out the research potentials inside the RSE.

He also runs his own private practice known as Inspirethought Therapy and is a contributing writer with his own Blog at Psychology Today.