Recession-Proof Yourself With The Gig Economy 💸📉
Recessions can come with many negative effects, including job loss and home loss. Economic slowdowns happen on an almost cyclical basis. Whilst these can wreak havoc on the lives of many, they can also present a considerable amount of opportunity for the average citizen. So, how can you use the gig economy to your advantage in a recession?
Even the word fills the hearts of many with dread. A recession is a period of economic downturn that can have a wide-ranging impact on the behaviour of consumers. People become more frugal with their financial decision-making, opting to spend less and save more. As spending tightens, several industries can experience fewer sales, resulting in businesses having to cut costs and scale down their operations to stay profitable.
In other words, as consumers spend their money with increased caution, businesses have to adjust their workforce accordingly. Unemployment typically sky-rockets during an economic downturn, with businesses having to scale down their full-time workforce to cut costs and maintain margins. Almost all sectors go into defense-mode, as they tackle the recession head-on and make the necessary curs to stay afloat.
The Rise Of The Gig Worker 🔨🙌
With long-term and short-term employment contracts being cut across many industry sectors, a recession can leave workers with less money and more time on their hands. They can use this time to find short-term gigs on a platform like Gigstar. When the next recession hits, we believe that platforms like Gigstar will thrive, with a rising need for side hustles and income supplements.
Even in the current economic climate, the gig economy is still a great place for workers to add to their existing income by taking on short-term roles in their spare time. By having multiple streams of income, you put yourself at less of a risk when it comes to being impacted by an economic downturn. If you work as a waiter at a restaurant for three days a week, why not use Gigstar to find a few waiter gigs at other restaurants in your local area to keep you busy for the rest of the week?
Recession Increase On-Demand Opportunities 📝📉
A recession can cause a rise in part-time opportunities. If a business can reduce a role to only the hours of absolute necessity, they will. This enables businesses to gain just enough value out of their workforce without breaking the bank or wasting any money. With this in mind, it would make sense for many businesses to turn towards the gig economy and start hiring more workers who are suited towards a degree of flexibility.
As we edge closer towards economic uncertainty, we could begin to see a rise in gig opportunities from industries that have, up until now, shied away from the gig economy. For seasoned gig workers, who are already well-suited to this varied and flexible style of labour, an economy in freefall could present some exciting prospects.
To survive an economic downturn, you should aim to stay focused on securing as much gig work as possible, alongside your existing job. By doing this, you decrease the risk of impact with several diverse streams of income. It can also be a good time for workers to develop their skillsets. This is why many professionals choose to head back into education and study new crafts.