Gig
Economy Impact on MillennialsThe gig economy has
developed at an unprecedented rate in recent years, raising concerns about
employee rights now that technology has changed the way businesses work. As a
result, some businesses can now operate their entire core business using
self-employed or freelance employees and applying technologies to cut down
transaction costs (Drahokoupil & Piasna,
...[Show More]
Gig
Economy Impact on Millennials
The gig economy has
developed at an unprecedented rate in recent years, raising concerns about
employee rights now that technology has changed the way businesses work. As a
result, some businesses can now operate their entire core business using
self-employed or freelance employees and applying technologies to cut down
transaction costs (Drahokoupil & Piasna, 2017). On several occasions, the
International Labour Organization (ILO) supervisory bodies have expressed their
concern about the gig economy, emphasizing its absence from work laws. The gig
economy makes and exacerbates the consequences of unequal bargaining power; with
the amount of transition occurring and the existing confusion of contractual
relationships, legal problems are bound to arise. In 2008, when millennials
were either in college or joining the workforce for the first time, an economic
downturn known as a recession struck. This had a significant impact on the
growth of jobs for millennials who had a stable career path before the recession.
While the downturn in the economy was not as severe for those who had been in
the workforce for a long time, the job market was in a crisis for millennials
looking to find employment after businesses implemented hiring freezes and
reduced worker salaries. The gig economy was only beginning to make its way
into the economy at the time, which presented both an opportunity and a
challenge. This was a great opportunity for many unemployed and wanted jobs
right away; however, it presented a significant obstacle for many employers.
For employers, this resulted in many open vacancies that they were unable to
fill and prospective applicants seeking a better work-life balance. Most
companies believe that short-term employment without any assurance of permanent
employment has assisted the workers to be more flexible. This paper explores
the gig economy, its definition, the impacts on millennials, and the needed
regulation.
A gig economy is an
environment where temporary jobs are popular, and companies hire individual
contractors for short-term projects. Businesses save money in the gig economy
by not having to pay for overhead such as office rooms. This work style allows
employees to choose the type of work they want to do, and it allows employers
to fill more specific positions even more quickly than before. This model is
designed for people who want to start their own company. However, for others,
such as millennials, who are only starting or have already started their
careers, this work atmosphere cannot be good and bad depending on how they play
their cards. Subcontracting, labor hire, franchising, and other types of veiled
employment relationships have contributed to the deterioration of the
conventional employment relationship over the years. Because of the formal
classification and the clear emergence of new modes of job connections, this
intermediate group of jobs arose. Many people who work in the gig economy fall
under this category. Most recent reviews concerning the current working
practices looked at the gig economy and recognized its benefits and
opportunities. It emphasizes that these people should get covered to ensure
that employees in the gig economy are treated fairly, and a vivid distinction
must be made between those who are legitimate workers and those who are not.
Gig-workers' rights have been challenged as a result of their uncertain job
situation.
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