Forbes: how COVID-19 has transformed the gig economy.

One of the major impacts of COVID-19 is the loss of millions of full-time, permanent jobs. It’s a change that is spurring new growth in the gig economy. In fact, research shows that freelance workers will comprise more than 50% of the American workforces come 2023. That’s a significant increase from the estimated 35% that are doing gig work right now.

While many have actively chosen gig work for the flexibility it offers over traditional roles, others have been forced into alternate arrangements. Some, especially working women, have left full-time jobs by choice due to family responsibilities during the pandemic. These individuals are finding that being part of the gig economy better fits their needs for work-life balance.

“Although demand for gig workers has accelerated since the start of the pandemic, competition for gig jobs has also increased,” writes Rebecca Henderson, CEO for Global Businesses and executive board member of Randstad. “Workers who participate in the gig economy as their sole source of income must now compete with one another, as well as previously full-time employees who have been forced into gig work.”

Henderson also advises companies to look at their role in the gig economy, and the kind of working arrangements they are offering to freelancers and contractors. Since these arrangements allow companies to be more agile and cost efficient, they should carefully consider how they treat these workers in order to retain good talent as the economy recovers.

Read Henderson’s article in Forbes for additional insights on the future of the gig economy. You can also download Randstad Sourceright’s MSP Playbook for best practices on managing the contingent workforce at your organization.