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More people than ever are taking their careers into their own hands by bravely ‘going freelance’. Now the new norm for generating income, independent work arrangements have surged in Australia in recent years. Learn everything you need to know about the Gig Economy and how to get in on the act.
Believe it or not, independent work arrangements in Australia now account for more than a third of the workforce, with an additional 900,000 people working a side gig on top of their day jobs for extra cash. Projected to reach $455 billion USD by the end of 2023, now is the time to take the leap into independent work!
Welcome to the Gig Economy.
What is the Gig Economy and what drives it?
‘Gig’ is the colloquial slang for a job that runs for a set amount of time, with the Gig Economy being a market system that is driven by contract or temporary employment opportunities. Freelancers or contractors fulfil these roles for organisations, as opposed to companies hiring full-time permanent employees.
The term ‘gig economy’ was coined by the former New Yorker editor, Tina Brown, in 2009 to describe “a bunch of free-floating projects, consultancies, and part-time bits and pieces, while they transacted in a digital marketplace.”
What has created the Gig Economy?
While freelancing is certainly not a new concept, the number of people pursuing it has ramped up considerably in the last few years.
According to the Australian Bureau of Statistics, in April 2020 underemployment in Australia hit a record high of 13.8% and two months later unemployment hit a record of 7.5%, which is the highest it has reached in over 20 years.
This uncertainty, fuelled by the global pandemic, pushed many to seek more flexible ways to generate income, with many unable to return to places of work during lockdowns, or having lost their jobs completely.
During this time, employers became more reluctant to hire permanent staff, with contractors being a more attractive and sustainable option – i.e. less commitment required on the part of the company.
What has created the Gig Economy?
While freelancing is certainly not a new concept, the number of people pursuing it has ramped up considerably in the last few years.
According to the Australian Bureau of Statistics, in April 2020 underemployment in Australia hit a record high of 13.8% and two months later unemployment hit a record of 7.5%, which is the highest it has reached in over 20 years.
This uncertainty, fuelled by the global pandemic, pushed many to seek more flexible ways to generate income, with many unable to return to places of work during lockdowns, or having lost their jobs completely.
During this time, employers became more reluctant to hire permanent staff, with contractors being a more attractive and sustainable option – i.e. less commitment required on the part of the company.
Who works in the Gig Economy?
Gig workers include freelancers, project-based workers, independent contractors and temporary part-time hires across industries including software, technology, creative and multimedia and IT. Many gig workers are also working via apps for on-demand drive and delivery services, such as Uber, DoorDash and Menulog.
According to research by Upwork, 36% of the total U.S workforce are freelancers and it’s a growing market amongst the most educated, with 51% of postgraduate workers opting to work independently and 56% of non-freelancers stating they are likely to freelance in the future.
The same research indicates that 53% of all freelancers provided skilled services across digital marketing, IT, computer programming and business consulting in 2021, which was a 50% increase from the year prior.
What are the benefits of the Gig Economy?
Benefits exist for employers and employees alike in the Gig Economy, including the following:
Flexibility and independence
Working independently provides a great deal of autonomy, most notably the ability to select your own schedule. This also enables freelancers to accommodate other priorities in their lives, such as creative pursuits beyond their work, caring for family members or passions such as travel – hence the rise of the digital nomad.
For employers, there’s less commitment required as they don’t have to pay for a lot of extras legally obligated with in-house permanent employees, plus they can also decide to renew or not renew contracts with minimal notice.
Set your own rate of pay
Freelancers can decide on their own rates, whether that be hourly, daily or per project, as opposed to applying for a salary-based job. If the company isn’t comfortable with the rate, a negotiation can occur if both parties are open to it.
Get paid faster
In some instances the pay is also faster and more regular than a permanent role, which might be a set monthly pay date. This really depends on how promptly accounts are managed within the company you are contracting with.
Skills you need to thrive in the Gig Economy
Time management
As a freelancer it’s imperative that you have well oiled processes and systems in place to make the best use of your time. It’s also important to take into account that you need to factor in time for administration, marketing and financial aspects of your business, in addition to the actual ‘doing’ of the gigs. The more efficient you can become with your time management, the more money you will be able to make without burning yourself out.
Digital marketing
Knowing how to market yourself online is a game changer for any freelancer. By having the skills to professionally put you and your business out to the online masses, you will be able to specifically target your key audience market to attract more opportunities, increase your brand awareness and position yourself as a trusted option for your area of expertise. Our Digital Marketing courses will empower you with these skills.
Financial know-how
As a freelancer, you are responsible for your own income tax, superannuation, insurance and GST payments. You can of course hire an accountant to get your finances in order, but it’s important that you have a working understanding of these processes and put aside the right amount of money on a regular basis to ensure you aren’t met with a hefty tax bill, or unable to contribute to your super.
How to get into the Gig Economy
The first thing to consider if you’re interested in making an income from the Gig Economy is how to make your base of skills appealing to employers. You’ll also need to settle on a career path that resonates with you.
At Academy Xi, we offer industry leading training that is designed by professionals in their respective fields and delivered online within an engaging approach to ensure you graduate job-ready. All of our courses are in industries where you can successfully work remotely and with experience command a healthy rate of freelance pay.
Explore our courses in:
- Design (includes Service Design, UX Design, Graphic Design)
- Tech and Data (Cyber Security, Data Analytics, Software Engineering, Front-End Web Development)
- Business and Marketing (Digital Marketing, Social Media Marketing, Product Management, Customer Experience)
If you have any questions, our experienced team is here to discuss your training options. Speak to a course advisor and take the first steps into the Gig Economy.
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