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Gig Economy Vs Job Economy (Hypothesis) 👩‍🔬

Getting a job is 80% of the "real world". Go talk to any baby boomer or generation x and they will tell you the same thing. The status quo is job, but for the new generation: z, the economy is changing and especially the "job" market.

I did a deep dive, thanks to my Provigil, on the archetype of Generation Y and Z and found very interesting results.

Generation Y, particularly the older Millennials, are the ones being phased into a world of convenience. Technology rapidly hockey sticked in growth from their childhood to their early adulthood. As a result, they grew up in an environment that was increasingly accessible. Most of them have creative ideas about what life should look like, and how technology can refine them. Stereotypically, most Millennials have short-term feedback needs on an ongoing basis; meaning they need validation. They have a need for autonomy and want for equality or respect on an equal footing with those older than them or even possibly those on a higher position than them. Millennials can be highly educated, but may face a lot of economic competition for similar resources: jobs that have a fixed amount of supply and a glut of demand from well-credentialed peers with potentially better resumes.

Generation Z, or Zoomers, grew up with technology. They have no other grid for a life other than technology. As a result of this, they are more apt to embrace new technology and have less push-back to change. They are in an information age where they have an oversupply of it and thus leads to attention difficulties. Many Zoomers feel a need for unconventional sources of credentials like self-teaching themselves a new language from YouTube or OJT (on the job training) either in a new job setting or in entrepreneurship. These days there are a lot of growing 18 to early 20's new millionaires doing unorthodox things such as eCommerce drop shipping, YouTube content creation, internet informational courses, self-published ebooks, and more.

During this Coronavirus pandemic, many jobs are being laid off due to non-essential business closures and high commercial rent running the clock. A lot of these jobs are traditional brick and mortar stores or corporate jobs that are nexused to buildings. Although there are a growing number of remote work from companies that have adjusted to fit the new generations' needs, there are still many traditional work places that have not adapted to the future.

Some of these companies have pivoted. As a result of non-essential business status, companies have been using zoom to have digital conference meetings or using the internet to fill out and send over important documents pertinent to business. But by the by, there have been a growing number of layoffs due to sales bottlenecks leading to layoffs for a need of profitability.

During this time, there have been a growing need for gig businesses such as Shipt, Roadie, Postmates, Instacart, Amazon warehouse, and others. In a need for convenience, these gigs are more in demand than ever, especially by those ill with the virus. Although they have likely been hit by shrinking profitability due to restaurants or merchants closing down, remote or gig work still solves an aching need for convenience by people already sick or those wanting to keep social distance.

Past this pandemic, remote and gig work will continue to be a threat to current traditional work models because of Moore's law: the idea that new technology will rapidly increase causing halvening of prior technology's prices. This is easily shown in year over year prices of graphics cards where as new graphics card models come to market, older models' prices begin depreciating rapidly.

With the growing cost of commercial rent, businesses that choose to go lean will adopt more autonomous work routes while maintaining the same code of conduct and business mores.

Gig work is different from Remote work in the sense that gig work is temporary, and has higher degree of autonomy than remote work. It is typically indicated by work that has a push-to-accept feature like Postmates, where the user can accept to work a gig or not.

Remote work can be temporary or full-time. Remote work is less autonomous as there are rules and regulations that all employees need to abide by contingent to employment. It can be temporary in the sense that it may be a trial period for a long term position in the future depending on how well performance is or if the recipient promotes the ideals and social "look" of the company (lets be real). But typically when working remote, more signage needs to occur with NDAs or other such agreements. 

My hypothesis: 

Gig work is a growing source of income for people today. There are many full-time gig workers that earn substantial income depending on how saturated a market is, or if they were pioneers in such work models. In other less established gig economies such as Roadie, there is still a substantial opportunity to earn ongoing income. When all of these opportunities are utilized, there is a substantial amount of income to be made with near-autonomy. For example, if one is a Uber or Lyft driver, if that income stream dries up one week, they can move on to be a grocery shopper at Shipt or Instacart. If those dry up, they can choose to do deliveries for Roadie.

Remote work is a growing need for big conglomerates to mid-sized businesses and even small businesses alike. The reason why this is a growing trend is because of the growing Generation Z cohort and current progressive companies utilizing remote work to hire the best talents from overseas at a fraction of what it might cost domestically. In others, domestic-remote work is growing due to companies wanting to go lean and having the speed of such conveniences and effective work outputs.

My hypothesis is that as commercial rent continues to be an externality due to increasingly higher rates, and as inflation occurs; doubly shrinking profit-margins, remote work will become more feasible. As a result of this pandemic, business models will undoubtedly change to adapt to the changing atmospheres related to global superbugs in the future and the idea of cost-shrinking.

There are a lot of people who make great livings doing just gig work alone. I know a buddy of mine who makes $10k a month doing task rabbit (at the cost of his body), but those gigs are definitely not scalable. They are a means to an end. So for those reading this, I urge you not to value shame those who do.

Those who work traditional job modes in a brick and mortar location, I urge you to commandeer a scalable mindset towards where technology and generational values are moving. Thanks for reading.

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