Fisayo Adeniji (22) has just signed his first six-figure contract as a junior engineer with a foreign company. He got the opportunity after learning how to code, develop software, and how design user interfaces during the lockdown. As he mastered the craft, predictably, he signed his first six-figure contract last July to help design the app for a start-up company with the promise of being kept on retainer pending his graduation.
Fisayo is just one example of a now entrenched trend where skilled young people armed with the internet and a smartphone can earn money, mostly in foreign currency by doing remote work for companies. With these, many have taken to websites that connect them with freelance jobs. These jobs or ‘gigs’ are often solicited by employers and businesses that want quick and simple tasks achieved without the hassle of vetting and in-house training.
What is the Gig economy?
The gig economy is part of the labor force that is made up of workers who earn money from short-term contracts or freelance work rather than full-time jobs. In most cases, these jobs look at experience rather than qualifications; so, they are easier to get. For instance, a start-up can hire a UX designer or writer to work with them up until the launch, based on how attractive their portfolio is, instead of what degrees they have amassed.
Other examples are driving for a ride-sharing service, painting someone’s house, freelance work, coaching, fitness training, and tutoring. The job is exchanged for cash and there are no other benefits, such as health insurance.
Common gig economy jobs are found in almost every industry, including, but not limited to accounting and finance, construction, education, information technology, freelance writing, software development, and transportation.
In the past, both employers and workers seeking these jobs had to rely on word of mouth and fliers, but these days, they can find postings anywhere from social media to specific gig apps. Apps like Upwork, Fiverr, and People Per Hour are good examples of platforms offering gigs.
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Some Nigerians who gave it a try
Nairametrics spoke to three other young people using gigs to either supplement their source of income or give them work experience.
Anderson Nduka (23) is a student at the University of Lagos. Before the ASUU strike, he drove with ride-hailing apps like Bolt and Uber every day since August 2021. “It depends on my timetable. On Fridays when I didn’t have any classes, I would do it throughout but Monday and Tuesdays I would not because traffic is usually heavy then and that is when I have most of my classes.”
To underscore how good the gig is, he talks of getting his own car within six months if he doesn’t relent.
Bolu Osineye (22) is a freelance ghostwriter. He has written essays for online personas, even as a local government official. Because he does not publicise or advertise the works that he does, he mostly gets jobs by referrals and Upwork. Speaking to Nairametrics, he said the issue he faces is that the jobs can be far and few between. He could get one that pays N50,000 and another that pays N20,000 in the same week, then get no listings for three consecutive weeks.
Grace Alakanse (19) doubles as a tutor and babysitter for a young working couple based in Ibadan. Also affected by the strike, Grace is a 200-level student studying mathematics at the University of Ibadan. To make her time at home productive, Grace looked for jobs online and found an ad for a nanny/caregiver that wasn’t required to live in. She responded to it and met up with a young couple looking for extra help with their children. The couple both go to work, with the husband going to Lagos every week.
She started out picking up their young children from school every weekday and taking care of them until the evening when either parent returned for N15,000 a month. When they learnt about what she was studying in school, they started paying her an extra N10,000 to tutor the children. At the end of the last term, when both children were the best in mathematics in their class, Grace was paid a bonus of N10,000.
Where to find Gigs
Upwork, Fiverr, and Freelancer are common examples of freelancing platforms that people use to find gigs. LinkedIn is often mistaken for one but it deals mainly in full-time employment.
Most recently, Pocket App by PiggVest also joined the gig economy when the app was bought out by PiggyVest. Under the sell option, freelancers have the option to select their professions and the services they offer. Every occupation from a carpenter to an engineer is hosted on the app.
Recommended Reading: How to optimize your Upwork and Fiverr profile
Criticisms of the Gig Economy
Despite the upsides to the gig economy, some downsides have been identified, including:
- the gig economy trend can make it harder for full-time employees to develop in their careers since temporary employees are often cheaper to hire and more flexible in their availability. Workers who prefer a traditional career path and the stability and security that come with it are being crowded out in some industries.
- For some workers, the flexibility of working gigs can actually disrupt the work-life balance, sleep patterns, and activities of daily life. Flexibility in a gig economy often means workers have to make themselves available any time gigs come up, regardless of their other needs, and must always be on the hunt for the next gig.
- In advanced economies where unemployment insurance coverage is a norm, this is usually not available to gig workers who can’t find employment.
- someone who depends on gigs throughout their working life will not be looking forward to a retirement account.
- Difficult to build long-term relationships with employers because of the tenured nature of gigs.
Is the Gig economy sustainable?
It is easy to answer in the affirmative barring any major disruptions in technology and the global economy. This is because factors that encourage the gig economy look poised to endure.
- Internet penetration: Broadband availability is the backbone of the gig economy. Nigeria’s broadband penetration looks set to increase. In July 2022, data from the Nigerian Communications Commission (NCC) revealed that subscriptions for broadband in Nigeria increased to 84.9 million from 84.6 million in June. This brought the country’s broadband penetration to 44.49%. The data indicated that the country’s efforts through the implementation of the National Broadband Plan (NBP 2020-2025) are yielding results. In the plan, the government had set a target of 70% broadband penetration to be achieved by 2025.
- Demography: Gigs are the stuff of the young, and Nigeria’s youthful population is not only high, it is also on the rise. Youth Population is also about 64% of total unemployed Nigerians, suggesting that the most agile working-class population in the country remains unemployed. This is an army that can potentially latch on to the gig economy.
- Size of the global gig economy: As of May 2019, there were more than 150 apps on the gig economy. It was expected that in three years the numbers would have risen; Predictions are that the gross volume of the gig economy will reach $455.2 billion by 2023. This is more than twice the size in 2019, according to a study conducted by Mastercard.
Global stats on the Gig economy
- 97% of people living in Mexico and India are open to joining the freelance economy.
- In Australia, Italy, the UK, and Spain, 90-94% of people are open to gig work.
- Up to 93 million working-age people across Europe and the US are part of the gig workforce.
- The UK’s gig economy, between 2016 and 2019, doubled in size, which equates to 4.7 million workers.
- Between 2008 and 2015, the number of independent workers jumped 24% in the European Union, from 7.7 million to 9.6 million.
- 3% to 10% of workers in mature economies and more than 30% in some developing countries reported using gig platforms as a secondary income source.
There is a portion of Gig economy in every economy of world and this promote flexible and healthy work environment.