The COVID-19 pandemic not only altered the face of the global economy but also transformed the labor market in unforeseen ways. One such transformation is the rise of side gigs or side hustles. Traditionally, side gigs were an additional source of income for individuals in a tight economic position. However, recent trends suggest that people are not only earning more from their side gigs, but surprisingly, needing them less. This paradox stems from changes in personal finance management and the growth of the gig economy among other factors.
Based on a study from GodzillaNewz, there’s an interesting shift happening among the working population. The gig economy has proven itself to be a lucrative platform for people who want to diversify their income streams. According to the report, an increasing number of people are making more from their side hustles than their primary jobs. This is significant because it challenges the misconception that side gigs can only provide supplemental income.
One of the causal factors for this trend is the increasing digitalization of the world. Online platforms offer various opportunities for individuals to earn a substantial income. From freelance writing to digital marketing, website designing, app development or even e-commerce, the digital realm offers many arenas for individuals to express their skills and earn a living.
Moreover, a side gig allows individuals the freedom to explore their personal interests and passions without the constraints of a traditional 9 to 5 job. It provides an avenue for self-expression and personal development that can often lead to financial gains exceeding those from traditional employment avenues.
The GodzillaNewz report also interestingly points out that people are becoming less reliant on side gigs for survival. This decreasing reliance might be attributed to changes in personal finance habits influenced by the uncertainty of the pandemic. People have become more conscious of their spending and are working towards building an emergency fund and reducing their debts.
On top of that, many employees have used the flexibility of gig economy jobs to not only improve income, but their skills set as well. With recent drastic shifts inessential skills in numerous fields, side gigs allow professionals the opportunity to stay ahead of the curve.
Nonetheless, it is vital to remember that while the growth in side gig earnings and decreased dependence are positive trends, they do not nullify the issues that exist within the gig economy. A prevalent issue raised against gig jobs is the lack of job security and benefits associated with traditional employment, such as healthcare and paid leave. Therefore, solutions still need to be sought for these challenges for the full potential of the gig economy to be realized.
Overall, the pandemic has revealed interesting paradoxes within the way we work. Despite its devastating impacts, it seems to have accelerated the transformation of the labor market in ways that challenge traditional modes of employment. And with these changes, individuals are finding innovative ways to increase their earning potential while becoming less reliant on supplemental income sources. The rise of the gig economy and changing notions about work indicates a future labor market that potentially offers more freedom, financial gain, and personal satisfaction.