gray zone economy

gray zone economy

The pandemic has catapulted capitalism into an unknown future, and the gig market is taking notice. Layoffs due to the pandemic have created a fierce need and competition for contract work, and women in particular are entering that market: 11.7 million women lost their jobs between March and April, compared to 9.6 million men. women lost their jobs, compared to 9.6 million men. However, recruitment surged in the freelance field, one of the few sectors that has prospered as a result of the national crisis. This year, 2 million people have joined the approximately 57 million Americans who already identify themselves as freelancers. And this shift shows no signs of slowing down. So if you've recently become a freelancer, don't panic. We're here: here's a guide to freelancing.

In mid-March, Samantha Sands, 23, moved from the Bay Area to San Diego to work as a technical publicist for a small agency. After only three days on the job, Sands began working from home; a week and a half later, she was told that her hours would be reduced because clients were suspending or canceling services. Two days later, she was laid off, becoming one of more than 22 million Americans who lost their jobs due to the COVID-19 epidemic.

Then in June, Sands stumbled upon an interesting job posting while browsing LinkedIn and Indeed. However, it was not a full-time job, but a low-paying contract position. It was not a full-time job, but a low-paying contract position." They could have had a conversation with me." Now she is interviewing for a full-time position while working as a freelancer elsewhere. She adds, "A lot of companies don't know what the future holds, so they're just looking for contract workers until the country is stable again."

Sands' situation is not uncommon: According to research firm Gartner, about one-third of organizations are reducing full-time employees and hiring contract workers to cut costs. With companies restructuring to cope with declining revenues, cutting staff seems like the easy way out. By switching some of their employees to freelancers, companies can save on payroll costs and more expensive benefits.

In the past, however, freelancers had several perks that 9-to-9 workers did not: they could usually work from home. You can set your own schedule. In most cases, they could choose their own work without being at the mercy of a troublesome boss. In today's remote work world, most people work this way. (This ambiguous new reality can be a disadvantage for freelancers: an employer can have two workers doing essentially the same job, and what differentiates them may not be their accomplishments or benefits to the company, but their income and insurance coverage. Michelle S. Strohlo, a partner at the law firm of McDermott Will & Emery and co-leader of the firm's COVID-19 Employment Task Force, says it is the employer's responsibility to properly classify workers and enforce the boundaries of whether they are contractors or employees. Unfortunately, that is not always the ideal way to achieve this, especially today. [According to Elizabeth Reynolds, executive director of MIT's Task Force on the Work of the Future, the pandemic has also exposed what is called the shadow labor market. The social safety net for these workers (including contract workers, freelancers, and front-line workers who support the gig economy) is fragile, despite the short-term protections offered by the federal stimulus bill. Says Reynolds, "These workers are some of the most vulnerable workers in society with respect to unemployment shocks."

Economic crisis aside, for many, the jump to freelancing is not forced, but a choice to increase flexibility. Rafael Espinal, executive director of the Freelancers Union, argues that it is time for the government to recognize this demographic as a priority. We are in an era where freelance work is considered the "job of the future." That is the current reality for many in this country."

This article originally appeared in the Winter 2020 issue of Marie Claire.

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