The tech evolution, globalization, and other factors have contributed to the rise of the gig economy in Canada.
The result has seen a significant impact on the Canadian jobs market, with both employers and gig workers seeking a shift from traditional employment and recruitment models.
If you are a startup founder or an entrepreneur, gig workers are your best bet as you hire them on a contractual basis, depending on the projects you have in hand.
In other words, you can spend your money on building a strong team of gig workers instead of investing in traditional brick-and-mortar offices.
To understand how the gig economy grew and what’s the future, keep reading.
Top Reasons For The Gig Economy’s Growth
The top reasons for the growth of the gig economy include:
- Technological advancements
- Changing preferences of the workforce
- Economic factors
- Employer adaptability
Impact Of The Gig Economy On The Canadian Job Market
The Canadian job market is witnessing a significant impact of the gig economy.
While there is no uniformity in the distribution of gig workers across the country, certain regions have higher concentrations of gig workers.
British Columbia, with its urban population, specifically Vancouver, is conducive to the gig economy and has risen as a hub for gig work. Interestingly, the proportion of gig workers in Vancouver is higher in comparison to its entire population.
The growth of the tech industry is cited as one of the reasons for the rise of the gig economy and workers in the region.
Additionally, the region’s proximity to tech hubs, like Seattle, plays a significant role in the increased demand for tech-related gig work.
In short, the gig economy in Canada is reshaping the labor market.
The data here shows how the gig economy has brought about significant changes in the Canadian jobs market.
In 2023, about 6% of the Canadian population, i.e., approximately 2.4 million people, were gig workers.
As per the most recent estimates, it is about 22% in 2024 and could be higher in 2025.
These numbers highlight the rapid growth and evolving nature of the gig work.
Gig Work: A Shift From Traditional Work Model
The gig economy spells a marked shift from traditional employment models.
While the traditional methods stuck to strict working hours, the gig workers opted for flexibility.
Additionally, the gig workers want to pursue diverse opportunities across various industries.
The traditional employment model didn’t allow for this chance.
However, as the gig economy evolved, there was a need for employers and recruiters to adapt and change how they work.
Modified Recruitment Strategies To Attract Gig Workers
With the growth in the gig economy, employers across the country realized to attract gig workers, they need to move away from traditional hiring practices.
Here are a few crucial areas you must consider while reforming your recruitment strategies.
Your recruitment processes must be flexible to attract gig workers. In other words: quick turnarounds and project-based hiring methods will help you attract gig workers.
Efficient use of technology to onboard gig workers and manage their work will make your organization attractive to gig workers. Use project management platforms, digital onboarding systems, and collaboration tools to streamline the integration of gig workers in your organization.
How To Engage Gig Workers: The Best Practices
While most of the best practices remain the same across both traditional and gig workers, there are some additional practices that can help you work with gig workers successfully.
Here is a list of those best practices for gig workers.
↳ Clear communication is the key to retaining gig workers. Be clear about your expectations, project scope, and deadlines right from the start.
↳ Offer them adequate support and necessary resources to help them smoothly blend into your organization.
↳ Recognition and Integration are the two aspects gig workers look for in their prospective employers. Make adequate efforts to include your gig workers in the team activities and recognize their efforts and performance in front of the team.
↳ Growth Opportunities are a must for gig workers. Offer them opportunities to develop their skills. You may also give them repeat assignments.
Final Words
The gig economy and the gig workers are here to stay. And as technology evolves, Gen Z wants to leverage it for their career advancements, upgrade their skills, and learn new ones.
So, if you want to see your business grow and thrive in the current world, you must adapt to the strategies that are conducive to the gig economy and gig workers.
FAQs
Q. What is the Gig Economy in Canada?
A. The gig economy refers to services offered through short-term contracts, freelance work, or other temporary work that is arranged through an online platform or mobile application. In the gig economy, gig workers operate as independent contractors and freelancers
Q. How do you explain the gig economy?
A. The term ‘gig’ is a slang used for jobs that are for a specific time period. Traditionally, musicians used the term to define their performance engagement. However, today, it has a broader meaning and is referred to as a free market system wherein organizations hire independent workers for short-term commitments.
Q. What is another name for the gig economy?
The gig economy is also known as the sharing economy or access economy.
Q. What are the challenges of the gig economy?
A. While the gig economy offers workers flexibility and the choice to pick their own projects, it does come with its set of challenges, such as a lack of job security, income insecurity, and difficulty in finding quality work.
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