Freelance Economy (Gig Economy) - Definition
Written by Jason Gordon
Updated at December 17th, 2020
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What is a Freelance Economy?
The freelance economy, or Gig Economy, is an economy of independent workers or individuals who are self-employed and execute different projects based on an agreed fee with the client.
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Problems and Challenges of the Freelance Economy
There are certain problems that have been attributed to the freelance economy, one of these is its contribution to the diverse difficulties that people face in society. The major problems of the freelance economy include;
- Freelance workers enjoy no health coverage or health insurance. When they fall ill, they are not entitled to vacation or leave, unless they take a break from work which can lead to financial hardship if prolonged.
- There is no provision for retirement or pension plan in the freelance market, despite the fees and commissions paid by the workers, they are no entitled to post-work benefits.
- It has caused a decline in the full-time job market and ore people now flock to the freelance market, creating a strain the domestic employment.