The gig economy: a term we are becoming more familiar with each passing day. We are constantly reminded about the rise of the gig economy but only a few understand the factors that are accelerating this process. In this article, I will be breaking down some of these factors as simply as possible.

1.  Real Estate Prices have been going up

Source: https://www.economicshelp.org/blog/5709/housing/market/

Since the late 90’s, real estate prices have seen a steady growth rate, with the only drop being between 2008-2012 during the housing crisis, before increasing again steadily. With the continual increases in prices, getting office spaces for large companies is becoming less affordable.

2. The rise of co-working spaces

It seems like a new co-working space pops up every couple of months. It has been estimated that there are 35,000 flexible office spaces covering 521 million square feet of real estate in the entire world - a number that is growing very rapidly. With the increased competition, co-working spaces are becoming more affordable with far more services becoming available. 

3.  Commuting times are increasing

The increasing population density in cities is leading to overcrowding. Transport infrastructures can no longer keep up with the increased load, leading to bumper-to-bumper traffic jams and overcrowding of public transport where we all feel like canned sardines. Besides discomfort, a lot of time is lost daily. Because of this, more and more people are opting to work from home to get back those additional hours which they used to waste earlier in travel. And what better way to do it than to be a freelancer. 

4. There are more entrepreneurs and startups than ever before

With the growth of the digital economy, it has become easier than ever to start a new business. With access to large markets globally and a wealth of resources to help push the business forward; starting a business is an enticing option. No more 9-5 jobs, increased fulfilment, flexibility and so much more have turned millennials away from the traditional job market. With many of these startups being run from home with no additional employees, most of these companies are more likely to hire a freelancer to complete any work that is out of their scope.

5. Almost everything can be done online

New ways of working. A phrase thrown around in big companies all over the world. With more tools and better connectivity, collaboration no longer requires the team to be in the same country anymore, let alone a shared office space. Data sharing and real-time updates have led to a far more seamless online collaboration. Collaboration tools aside, online transactions are far easier, safer and more secure than ever before. With the click of a button, money can be transferred around the world instantaneously.

6. Reduced barriers to a globalised workforce

A marketing executive in Malaysia, a programmer in America and ales teams that span across 10 countries. With the increase in available collaboration tools and English becoming the global business language, working across borders is becoming increasingly easier. With further improvements to the laws and regulations, global-scale projects are becoming the norm. With a whole host of benefits to going global, companies are all gearing up for the workforce revolution.

7. Better Freelancing platforms

Last but not least, the increased availability of freelancing platforms which are getting more effective at connecting employers to freelancers. Not only are they better at connecting collaborators but they also provide a host of services to make the collaboration as risk-free and hassle-free as possible.

Looking at these seven reasons, it is easy to see why companies are more likely to downsize their operations and rely more heavily on freelance work. This helps further develop the gig economy in a continuous growth cycle and someday the traditional 9-5 job will just be a long-forgotten memory.