WHAT ARE THE ECONOMIC IMPLICATIONS OF THE RISE OF THE GIG ECONOMY ON EMPLOYMENT STABILITY AND BENEFITS?
DOI:
https://doi.org/10.53555/eijbms.v10i1.174Keywords:
Gig economy, independent contractors, employee benefits, job security, labor rightsAbstract
The rise of the gig economy has significantly impacted the traditional employment landscape, particularly in terms of job security and employee benefits. Gig workers, unlike their counterparts in traditional employment, face challenges such as unstable incomes, lack of access to employer-sponsored benefits like health insurance and retirement plans, and minimal protections under labour laws. This paper examines the socio-economic implications of gig work, with a focus on the disparity in benefits between gig and traditional workers. Gig workers often bear the financial burden of taxes, insurance, and other costs, leading to a precarious employment environment. Furthermore, the independent nature of gig work makes unionization difficult, leaving workers vulnerable to exploitation and with limited bargaining power. This study explores proposed solutions to address these challenges, including the development of portable benefits tied to individuals rather than employers, the reclassification of gig workers to provide access to labor rights, and the potential creation of government-led platforms such as the Gig Worker Benefit Platform (GWBP) to offer medical and tax benefits. Additionally, we highlight examples of legislative efforts in California and the UK aimed at reclassifying gig workers to extend protections and benefits. While the gig economy offers flexibility and autonomy, the lack of job security and benefits remains a significant concern, warranting comprehensive reforms to ensure economic stability for gig workers. This analysis underscores the need for innovative approaches to protect gig workers and promote equity in the evolving labor market, with particular emphasis on policy interventions, benefit reforms, and collective bargaining rights. The study concludes by proposing that the future of gig work must incorporate stable benefits and protections to address the growing vulnerabilities faced by this workforce.
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