The Gig Economy: The Catalyst for a New Workforce
Despite Canada not being as well-known for producing successful start-ups as its American neighbours are, Toronto has been ranked as the 15th best start-up ecosystem in the world in 2019. In 2017 alone, there were almost 1,115,000 active enterprises in Canada with 64.6% containing four employees or less.
In a recent survey conducted by Sage, it was found that one in three working Canadians manage their own businesses on the side. It was also found that one in six working Canadians have participated in the gig economy. This means that Canadians are slowly shifting further away from the traditional career path for side hustles, and becoming part-time entrepreneurs.
The gig economy is comprised of flexible, temporary and/or freelance jobs, and results in not only cheaper, but also more efficient service providers usually through convenient online platforms. The gig economy itself however is very broad, it includes workers who are full-time independent contractors. entrepreneurs, small business owners, along with individuals taking on multiple jobs through various means such as moonlighting.
Canada is not the only country taking advantage of gig economies, with its American neighbours well on its way as well. Estimates show that a third of the working population in America is already involved in some sort of gig or side hustle. This number is only expected to rise over time with the increasingly rapid automation of work-related software and services; the ease of digital access is making it common for individuals to work from home.
The gig economy can also be seen as a reflection of the current economic environment as employers often opt for part-time or temporary or freelance workers when they cannot afford to hire full-time employees to complete all the work they need. Those involved in the gig economy can also reflect a shift in social and economic values as people are finding more often that in order to afford their desired lifestyles, they need to move frequently and/or take on multiple jobs. Furthermore, the idea of changing jobs frequently is becoming less taboo and more realistic with more people wanting to change their careers and even start their own businesses to achieve their personal goals.
Those in the gig economies if not already entrepreneurs, work and live more like them than traditional workers. The idea of security from a single job with regular pay and benefits is slowly becoming a relic of the past, in favour of more freedom of choice and autonomy as a worker. Workers are choosing to take on more market risks of economic fluctuations, changing consumer trends, rather than allowing for them to be shouldered by capitalist business owners.
The gig economy has also been criticized for its potential elimination of the benefits that come with long-term business relationships and customary practices. The nature of the gig economy erodes traditional economic transactions and relationships between workers, clients, employers, and suppliers, but can also benefit businesses by making work flexible and adaptable to quickly address problems and demands.
Side hustles create alternative pathways for individuals who may seek a career change or exploration into other sectors. 71% of working Canadians would consider opportunities requiring moving around, and 25% would also consider jobs that were a step down financially if they had the chance to work in interested fields, could be challenged, and best utilize their skills/abilities.
The strange part of gig economies however, is that while the term was popularized during the Great Recession, over a decade later, there are more individuals working in the gig economy than ever before. Many gig workers do not even work for human bosses, but rather apps, and this change is becoming more common, yet more and more complex.
In the last decade, the workforce had experienced a lot of changes, with young business owners having had to redefine their brands within a declining economy, and time becoming a premium service with the increase on-demand services. Time and time again, it has been observed that social change is driven by the decisions made by governments and businesses in regard to how the world is organized, and technology is used to amplify and emphasize such changes.
The current economic environment demands opportunities for new businesses and new entrepreneurs more than ever before, especially those that do not require high amounts of capital. In the waves of uncertainty and financial insecurity, the gig economy may be the solution to encourage high levels of economic productivity and innovation in the workforce.
With the development of gig economy, and increasing technological advancements, the ambitions of people capitalizing opportunities by running their own side businesses and taking on multiple jobs are eroding the traditional capitalist economy. By doing so, they might just be shaping a new future that demands for states to accommodate the various jobs their citizens may have, and to invest in opportunity building for economic growth within the gig economy.
