As gig work defies iffy economic outlook, HR leaders look to reshape policies
While the U.S. could be facing an economic slowdown, and with the latest jobs report indicating a falloff in new positions, one segment continues to flourish: the gig economy.
With more than one-third of the U.S. workforce now engaged in some form of gig work, projected to rise to half by 2025, some are even asking whether the gig economy is recession-proof.
One thing’s for certain: The continued appeal and accessibility of gig work has the attention of HR leaders who, tasked with staffing up organizations, find themselves competing with opportunities that tick so many boxes for job seekers.
Gig work continues to provide unmatched flexibility, letting people design their schedules around their personal needs and aspirations, something that’s increasingly appealing in a fluctuating economy, said Victoria Bethlehem, chief people officer at the staffing solutions company Jitjatjo.
“The world of work is changing rapidly, and the rise in the desire for gig work highlights that conditions of employment need to move with the times,” she said.
The ease with which job seekers can access gig work through mobile platforms has democratized participation, lowered barriers of entry and attracted a diverse range of workers. The gig economy is not just about ridesharing and food-delivery apps, with fields like healthcare, hospitality and retail all seeing a sharp rise in open positions. “It’s like a buffet of job opportunities, and people are loving the chance to sample different roles and industries,” Bethlehem said.
As for the influence of gig work over the larger economy, a survey earlier this year by Jitjatjo revealed that 3 in 4 Americans under 45 believe flexible workers will come to drive the U.S. economy in the future, while more than 4 in 10 workers said they would consider leaving their full-time jobs for a gig if it meant a four-day workweek. It’s not just an American phenomenon — globally, the gig economy is poised to grow from more than $400 billion in 2023 to $455 billion by the end of this year.
Gigs are about more than just flexible schedules, especially among younger workers. The 2024 State of the Hourly Workforce Report, from workforce management platform Legion Technologies, found that 43% of Gen Z workers and 47% of millennials prioritize the ability to get paid early, making gigs attractive to many more workers and further insulating those workers from larger economic trends.
“Traditional employers must find a way to offer that gig-like flexibility and instant access to pay workers desperately want,” said Traci Chernoff, Legion’s senior director of employee engagement. “For companies that employ hourly workers, that means giving them more direct input into their schedules. At the same time, managers need more efficient, reliable ways to accommodate that input while also accounting for business needs.”
Chernoff notes that AI is becoming an important tool to help employers design more flexible schedules and provide early access to wages without compromising operational efficiency.
Regardless of what the economic outlook holds, companies have little choice but to compete for workers who have answered the call of the gig.
“Everyone deserves a healthy work-life balance,” as Chernoff sees it. “Many job seekers view the autonomous nature of gig work as a way to achieve that.”