Check out the pros and cons of the gig economy

Take a look at all you need to know about the pros and cons of the gig economy. Here you will find all the details you must know before getting started on the gig economy. Keep reading to find out all the details!

Take a look at all you need to know about the pros and cons of the gig economy. Here you will find all the details you must know before getting started on the gig economy. Keep reading to find out all the details!

The U.S. job market continues to be disrupted by the rise of the gig economy, as millions of Americans tap into this type of work as a main source of income or to earn extra money. And in some cases, gig work is helping people to learn new skills in different sectors.

There are many reasons why you may be interested in the gig economy. Or maybe you never quite planned on joining but have found yourself as a gig worker out of circumstance. Either way, it’s important to understand the benefits and potential tradeoffs that can come with gig work.

There are many reasons why you may be interested in the gig economy.

There are many types of roles that fall into the “gig” bucket, but what they all have in common is that workers are not considered full-time employees, and do not receive a salary. Gig workers generally take on temporary, short-term roles and are often called contractors or self-employed freelancers.

There are many types of gig jobs, from app-based gigs where your responsibilities and schedule may change on a daily basis, to longer-term contractor positions that look a lot like traditional roles.

The hourly rate for gig work often can be higher than similar, salaried jobs. Plus, in some contractor roles you may be eligible for overtime pay. And if it’s short-term, you may be able to overlap or complete many gigs each week. However, you don’t get benefits like health insurance. And what happens if you get hurt on the job? In most cases, gig workers aren’t eligible for workers’ compensation, unemployment or disability insurance.

The hourly rate for gig work often can be higher than similar, salaried jobs.

Also, many gigs may pay you in full immediately, meaning you could have a healthy cashflow coming in. But taxes may not be taken out of your pay—but as a freelancer you still have to pay them and know how to pay quarterly estimated taxes to avoid penalties and interest. You’re also likely responsible for covering all work expenses like supplies and equipment.

What is more, you’re the boss—and that could mean more motivation and potentially more personal income. You have the freedom to choose when you work, where you work and for how long. Additionally, controlling when you’re on the clock could help you more effectively balance work with caregiving responsibilities.

However, your time spent hustling and networking to find new gigs is unpaid—and you don’t get paid for time off or your lunch hour. If you have to invoice your employer or client for work completed, you may need to wait 30 days or longer for payments to arrive. And if you’re signed up through ridesharing services or delivery businesses, you may have to pay a commission.

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