The Impact of the Global Pandemic in Terms of the Gig Economy
By Celina Yang
Gig economy: a labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs (Oxford reference).
As the global pandemic caused by COVID-19 lengthens in time, the U.S has been seeing a spike in unemployment rates. As more and more companies and workplaces let off workers due to the economic crisis, many people have been competing for gig jobs such as delivering food and resources to many Americans who have been forced to stay home due to the current situation. The uprise in gig workers have driven competition up while reducing pay checks. Many have debated over the pros and cons of the rising gig economy. The economy supplied many workers with more flexible and creative work, such as designing websites, personal deliveries and more. However, there were still some major flaws in the majority of these jobs, the flexible work usually did not come with any protection such as insurance or financial security for many of its workers.
The Scientific Explanation
Several people have referenced the recent occurrences as environmental resistance towards the increasing human population, one example being in my Biology class where we have learned about how the density dependent factors limit populations, but the human race so far have not reached its carrying capacity. If the pandemic is the result of overcrowding, how will the future look like for humans? Will people be able to live like the past or will the continuous limits of nature end the life of physical contact to Google hangouts and Zoom meetings? The answer is unknown, however, the impact is at least predictable, as the pandemic showed the increasing work of gig workers and decreasing of non “essential” workers. Examples of “essential” workers include medical workers, scientists and food producers. The next generation may see some major chances in the workforce as some jobs unnecessary for future conditions are eliminated and the “essential” workers and the gig workforce grows. I am currently very concerned about how the pandemic would affect my future, such as the jobs I could apply to.
The Evidence
The unemployment rate for the U.S has risen immensely in the matter of a few months, going from 6.2 million in February to 20.5 million in May according to Pew Research Center. As the International Monetary fund predicts a 3 percent contraction in the world economy, more people have been desperate to find gig jobs to at least be able to pay rent. According to USA Today, Instacart hired 300,000 additional workers due to the Coronavirus.
In the long term this shift in the economy will definitely impact students as well. Due to the decrease of students being able to go to college, whether it’s due to economic reasons or the Coronavirus, colleges will have to start accepting more students based on the economic contributions they can bring in rather than their abilities. While many colleges use to give out scholarships to less fortunate students through large donations from successful companies and former graduates. They will have a harder time due to the decreased revenue and will eventually have to accept students who will be able to pay for tuition rather than those in need of a scholarship. This certainly is my personal opinion, but the perspective of the future certainly cannot be generalized.
Due to recent events relating to my educational career, I have been looking into the impact of the coronavirus in many types of people. And eventually I realized that I have been blind to the major changes affecting our society, physically and mentally. I believed this might be helpful for those who have not really experienced the immediate impacts.
Related Resources:
Unemployment rates
Changes in the future of work
Gig jobs and apps
https://www.wgu.edu/blog/what-are-best-gig-economy-jobs-apps1907.html
Impact and more
https://theonebrief.com/what-coronavirus-means-for-the-gig-economy/