Here’s what a recession could mean for gig workers in 2023

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Post #2: “Here’s what a recession could mean for gig workers in 2023”

This business article was written by Rosa Saba, who is a business reporter at The Canadian Press. She explains what would happen with gig workers in 2023 due to a likely economic recession.

 

Economists are predicting an economic slowdown in 2023, but unlike previous recessions, they don't expect a significant increase in gig work. Traditionally, recessions led to a spike in gig work due to widespread job losses and cost-cutting measures by employers, leading them to hire contract or part-time labor. However, this time, the situation is different.

Several factors contribute to this unique scenario. First, the labor market remains tight, with a low unemployment rate and a surplus of available jobs, providing workers with more full-time opportunities. In previous recessions, the scarcity of jobs forced people into gig work, but this isn't the case now. Additionally, the ongoing retirement of the baby boomer generation is freeing up more jobs, further bolstering the labor market.

Furthermore, the nature of gig work itself has evolved. While gig work used to encompass mainly part-time, contract, and piecemeal jobs, the rise of app-based platforms like Uber and Fiverr has expanded its definition. However, the increase in inflation means that gig workers might earn even less, making it a less attractive option when considering additional costs like gas.

The absence of a significant increase in gig work in 2023 doesn't mean that the labor market is entirely stable. There is a substantial number of self-employed individuals, many of whom are app-based gig workers or independent contractors. These workers lack the protections offered by labor regulations and employment insurance. If they experience reduced hours or income due to the recession, they will face considerable challenges in recovering.

The experts emphasize that the recession's depth will play a crucial role in shaping the labor market. If the recession turns out to be more severe than anticipated, leading to widespread job losses and a scarcity of full-time positions, gig work might become a more prevalent option. However, for now, the confluence of factors, including a tight labor market, changing workforce dynamics, and higher inflation, makes the 2023 recession unlike any seen before, challenging conventional expectations regarding gig work during economic downturns.

 

This is my second blog related to the Gig Economy, and in this opportunity, I want to approach the recession for gig workers. I believe the impact of a recession on gig workers in 2023 will depend on a variety of factors, including the severity and duration of the economic downturn, government policies, industry-specific dynamics, and the individual adaptability of gig workers. It's crucial for gig workers to plan and adapt to economic changes, and for policymakers to address the unique challenges faced by this growing segment of the workforce.

And what do you think about this article? Do you agree? you can write me your opinion in the comments section!

 

References

Saba, R. (2023, January 6). The Canadian Press. Retrieved from The Global News: https://globalnews.ca/news/9392242/canada-recession-gig-economy-job-market-2023/