While a secure 9-to-5 day job has become standard in the United States, a growing percentage of Americans now receive all or a portion of their monthly income from side hustles and odd jobs. They are participants in the gig economy, a growing labor market characterized by the prevalence of short-term contracts or freelance work.
Due to COVID-19, the gig economy has expanded locally and globally. In 2019, Forbes reported that 35% of American workers freelanced in some capacity. Following business shutdowns in March, that percentage rapidly jumped. According to the “Future of the Workforce Report” report published by Upwork, an online platform that connects individuals and companies, the number of freelancers entering the workforce has increased 50% since March.
The report revealed that the most popular fields for short-term project work are writing, creative, web and software development positions. MindHome Inc., based in Louisville, confirmed this. The brand-new company, which offers smart home products and services, experienced accelerated growth due to market demand. CEO Daniel Turge via email said, “We have been pre-revenue for years and we were not expecting to come to market until this year; it's accelerated our business development because we have been able to find engineers available that were otherwise not available.”
A bounty of other side businesses also have sprouted post-COVID. For instance, Masks Are For Cool Kids, an endeavor local to Boulder, was founded in late March. Summer DuBois-Lenderman created the company because she was laid off and observed a need for masks.
“ I was laid off on March 21 and that's when I started to see posts on social media ‘calling all sewers’ and I knew that I had to dust off my machine and make a few for my community,” Dubois-Lenderman said.
Because the innovator expects the demand for masks to continue, she plans to expand her business in the coming months.
“I plan to rebrand and expand my business to include a ‘build your own mask’ tool that allows people to customize their mask. Everyone seems to have their favorite style that works for them and their unique and various uses of a mask,” Dubois-Lenderman said.
“The mask I wear to the grocery store is different from the one I wear to walk the dog. I want to help folks to make their own mask, virtually. Call it couture face fashion. In the next year, I would like to migrate my website from the GoDaddy website builder to the Shopify platform, which will allow for this customized experience. Knowing how to use the Shopify platform can be a valued asset in the marketing world so I am excited to gain this new skill set and apply it to this business.”
For Masks Are For Cool Kids to come alive, DuBois-Lenderman had to close her custom apparel and upholstery business after three years.
“COVID allowed me to take on a new endeavor without feeling crunched for time, since we were all home those first few weeks of the pandemic,” she said. “There was nothing else to do but make masks, ship masks, take photos of masks, etc. It was the hottest commodity for a long time and I had them.”
Entrepreneurs like Lachlan Quintana, founder of LQ Ventures, experienced similar. The creative professional via email said, “At the beginning of the quarantine, work was actually sped up and came in faster and more consistently, but as the shutdown has become longer and more severe in certain regards, I have actually taken the time to let my work calm down and focus on my mental health to be able to fuel my creative work even more as we get closer and closer to whatever the new normal may be.”
Not every industry involved in the gig economy has thrived, of course. Wedding caterers, musicians and event planners, for example, have seen a lull in work due to social distancing mandates and the rescheduling of gatherings.
Andy Rimer, a Longmont musician, said, “COVID definitely had an effect on my work. I wasn’t able to perform live or teach lessons in person.”
While Rimer did not apply for a federal Paycheck Protetion Program loan, he did apply for the Strongmont Creates program, which provides grants of up to $250 for arts projects
To support his career as an entertainer, he has “flirted” with the idea of virtual events. “I livestream shows now but never did a specific virtual show. I don’t feel it can replace live music,” Rimer said. “I decided to write, record, and even make a music video instead.”
With the unemployment rate holding steady at 11%, the rapidly changing labor market suggests hiring managers are increasingly relying on freelancers for projects that can be completed off-site. As companies develop and refine systems to connect with employees remotely, the potential also exists for the gig economy to expand into new realms.
