Question

Critically discuss the pros and cons of the gig economy for the WIDER SOCIETY. At least 3 pros and 3 cons, please. I do not need pros and cons for workers or organizations but the society as a whole.

Answer 1

Gig economy: Part of labor force who are on short term contracts or working free lancing instead of full time jobs

Pros to society:

• More workers are making more money as compared to full time jobs, thereby creating more money in the economy
• Businesses are able to produce more output using less cost, thereby bringing in more profits in the economy
• Makes way for new businesses like coworking space business models which saves lots of money

Cons to soceity:

• Fewer full time job opportunities would exist as more firms give out their jobs in short term contracts, which increases unemployment rates
• These workers do not pay taxes, leading to loss of tax revenue for the government and society
• There is lack of workplace culture and the foreign countries might not want to invest in such economies

Thus, the pros and cons of gig economy are explained above.