Gig Economy Growing 3X Faster Than The Traditional Workforce
Written by luma on June 9, 2025
What is the “gig economy” ? It’s a labor market where short-term, project-based work and freelance engagements are common, often facilitated by digital platforms. Instead of traditional employment with regular wages and benefits, gig workers are paid for specific tasks or projects. The temporary work arrangements, independent contractors, and freelancers who are hired for specific tasks or projects. Digital platforms like ride-sharing apps (Uber, Lyft), food delivery apps (DoorDash, Grubhub), and freelance platforms (Upwork, Fiverr) play a crucial role in connecting gig
Joining the gig economy used to be considered an “alternative” career path—but it’s fast becoming the norm. By 2027, half of the developed world’s workers will be part of the gig economy, according to a new report from Ogilvy Consulting. While it was initially a combination of advancements in technology and corporate cost cutting that drove workers to freelance and side-hustle jobs, the motivation for independent work has evolved. “Young people are really driven to take control over their own work life balance and craft their own career and narrative,” Reid Litman, global consulting director at Ogilvy and co-author of the report, tells Fortune. “They don’t trust the old system.” Members of Gen Z have come of age in an era marked by uncertainty and turbulence, from pandemics to political unrest to mass layoffs in various sectors. Traditional education is not the guarantee of a stable career that it once was, with many employers finding entry level candidates lacking the necessary skills to begin their ascent on the corporate ladder.
A critical subset of the growing gig economy is the community of creators, influencers, independent entrepreneurs and consultants, a category that includes “anyone who publicizes or monetizes their own persona or skill set,” according to Litman. Content creation, once seen as a frivolous hobby, has become more and more lucrative, and the creator economy is set to reach $529 billion by 2030, according to a report from Coherent Market Insights. In order to stay competitive and not lose future talent pipelines, companies should learn to embrace Gen Z’s modern approach to work. Litman argues that today’s employers frequently use the negative associations with Gen Z, such as high turnover rate, as justification for why they shouldn’t invest in them further. “This is kind of a race to the bottom, because while there is truth to higher turnover among Gen Z, these realities are rooted in more macro-shifts, like the idea that Gen Z will have many more jobs and careers than past generations,” Litman says.“It’s not a Gen Z decision so much as it is like a socio-economic and technological outcome.”
Source: Fortune
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