The Gig Economy- Exploring the Trend

The gig economy refers to the economy of independent workers who are not titled under a company and work as project contractors, freelancers, and independent consultants. Prior to the trend, the term gig was mainly used by musicians or creative artists to describe a show or a contract they received for a stated period. They got “gigs” for shows and gallery displays. The gig economy is mostly termed as ‘side hustle.’?

The new gig economy has assisted not only the youth of Ghana but also the global scape. Gig economy workers include ride app drivers, freelancers, project-based workers, and part-time workers, amongst others.?

According to a study by World Bank blogs , this economy thrives on digital platforms used by the youth globally.

“As explored in the recent World Bank report Working without Borders , many young workers are using digital platforms to access jobs from all over the globe and embracing online gig work rather than pursuing informal, low-quality, local jobs. They are performing task-based jobs facilitated through online gig platforms, continually upgrading their skills, and trying to stay ahead of the competition and evolving technology.”— World Bank Blogs

THE GHANAIAN YOUTH AND THE GIG ECONOMY

According to Ghana Statistical Services in its 2023 Quarter Labour Statistics report , “the average unemployment rate for the first three quarters of 2023 was 14.7 percent.”

“the average unemployment rate for the first three quarters of 2023 was 14.7 percent.” —Ghana Statistical Service

Unemployment has increased the rate at which the youth enter into the informal labour force. The strain on the formal sector and quality are all factors that have influenced this shift.?

Moreover, recent or long-time graduates are also shifting to this change using social media platforms and freelance platforms like Upwork. They are also moving to IT-related jobs since there has been an increase in remote employment in this industry.?

Also, the youth have moved to ride apps to supplement their incomes and keep up with living expenses. Apps such as Bolt offer the rider flexible working hours and not only ride-hailing apps, okada, photography, and food delivery. Independent workers also engage in gigs from companies seeking to cut down costs.?

The rise of the gig economy in Ghana represents more than just a shift in employment; it reflects the changing dynamics of the country’s labour market. Faced with limited job opportunities and rising living costs, many young people are turning to gig work to support themselves. This shift is also helping companies that seek to cut costs by outsourcing tasks to independent workers.

Pros of the Gig Economy

The gig economy offers several advantages, making it an attractive option for many workers and businesses.?

First of all, the gig economy offers flexibility. As people have developed the desire to improve work-life balance, this booming economy provides a great opportunity. Having the freedom, they can choose where they work, how they work, when they work, and what time to work. Through this, gig workers can combine multiple gigs and engage in other pressing activities.?

Secondly, gig workers appreciate the independence it brings. Unlike traditional workspaces, they have total autonomy, which also depends on the contract terms. Nonetheless, it is so for most gig workers.

Moreover, with multiple gigs, the gig economy workers have a pouch full of money streams. They are open to higher income amounts as opposed to a single job.

Cons of The Gig Economy?

Although the gig economy offers flexible working hours, work-life balance and different income streams, it also has its cons.?

Gig workers lack financial security as they do not belong to a company and may not receive benefits, social security, and more. They must continuously find gigs which are only short-term gigs. The amount given to them varies from gig to gig, unlike having a stable job, which can offer you exactly the amount of money a gig worker will receive from multiple gigs.?

They also have limited legal protections. Gig workers lack protection in the case of legal issues. It is challenging to fight for better working conditions or ensure fair compensation. Depending on the country’s labour laws, gig workers may be classified as employees; thus, they may receive legal backing. “There are currently no formal policies governing this sector (“The Gig Economy Initiative Hosts Key Session on Fair Work During Ghana Innovation Week 2024,” 2024).”

Finally, there’s a sense of isolation and lack of support. Unlike a traditional work environment in which work colleagues are housed, the gig economy usually makes use of home offices or remote workstations . Companies like Regus rent coworking stations, meeting rooms, and virtual offices.??

Although workers in this economy often face income instability, lack of benefits, and job security issues for many, gig work in a country with a high unemployment rate remains a valuable option.?

In conclusion, the gig economy is slowly becoming a crucial part of Ghana’s employment landscape, providing opportunities for youth to earn an income. As this economy continues to expand remote work opportunities, the gig economy will likely grow further, reshaping the future of work for the next generation of Ghanaian workers (“FEATURE: Decent Work, the Gig-economy and the Ghanaian Youth,” 2018).

As stakeholders in Ghana push for policies to be enacted to protect gig workers, the gig economy looks promising for the youth(“The Gig Economy Initiative Hosts Key Session on Fair Work During Ghana Innovation Week 2024,” 2024).”