According to ThriveMyWay, gig workers in the United States generate $1.21 trillion in revenue for the economy and it is predicted that the gross volume of the gig economy is expected to reach $455.2 billion by 2023. So there's no surprise that now 20% of the Texan workforce are contemplating joining the gig economy.
With changing business landscapes and virtual work settings, the gig economy is being relied on to help offset additional pressures placed on teams as a result of the pandemic. With access to specialised skills and talent, organisations look to the gig economy to ensure they can play catch up whilst they also resume BAU activities. So, what exactly is a gig worker and why are we seeing such growth in the sector?
What is the definition of a gig worker?
According to Texas gov, a gig worker is an individual who operates in an environment in which temporary positions are common and in which organizations contract workers for short‐term arrangements. As the economy has changed and technological improvements have persisted, the defining characteristics of employment have begun to vary. Economic changes have resulted in the emergence of a new workforce segment typified by self-employed and contract workers.
Larger tech talent pools are expected as gig workers’ pay rise continues
According to from Wonolo, the average hourly wage for gig workers on its platform increased to $15.59 in December 2021, up from $14.43 the previous year. Furthermore, average hourly pay increased 7.4 percent year on year in the fourth quarter of 2021, proving that this is not a one-month or holiday-season fluke. Pay for gig work is expected to rise through 2022, which means companies may need to adapt their budgets and pricing structures – and expect higher-quality gig employees to join their platforms.
Companies’ business models are changing and the need for gig workers has never been bigger
Companies’ business models are adapting in shifting post-pandemic and one of the cost-effective ways of retaining key talent is through contingent workforce or they give economy. More and more opportunities are opening for technology gig workers specifically within financial services and technology companies. Some of the most in demand skills are those with DevOps skills as well as product skills. According to Upwork's recent survey, two-thirds of hiring managers plan to increase their use of IT freelancers in the coming year. The number of high-earning freelancers in the United States continues to rise year after year, now totalling 3.1 million (20 percent of the workforce).
Texas is positioned as a hub for technology gig workers
Besides the tax benefits, the Texan technology landscape is offering gig workers a plethora of opportunities in technical and non-technical technology roles in 2022. With the technology industry booming in what appears to be the next Silicon Valley, gig workers are seeing Texas as the next hot spot for opportunity. Some of the most popular roles include web and graphic design, programmers and individuals with key IT skills. A surge in start-ups and support from local government also is indicative that this will be the next big space in tech in the US and it has no signs of slowing down.