A gig economy is a labor market that relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees. Gig workers are independent contractors, online platform workers, contract firm workers, on-call workers, and temporary workers. They enter into formal agreements with on-demand companies to provide services to the companys clients. The gig economy is based on flexible, temporary, or freelance jobs, often involving connecting with clients or customers through an online platform.

Here are five things to know about the gig economy:

• The gig economy refers to the temporary, contract, or freelance job space.
• A gig is generally a short-term task, project, or job that a person takes up to make extra cash.
• Gig workers are typically classified as self-employed, rather than employees, for tax purposes.
• Gig work includes driving for a rideshare company, tutoring, and making deliveries, among others.
• The gig economy spans virtually every industry and represents a large part of the workforce.

The gig economy can benefit workers, businesses, and consumers by making work more adaptable to the needs of the moment and the demand for flexible lifestyles. However, it can also have downsides due to the erosion of traditional economic relationships between workers, businesses, and clients. The most effective independent workers navigate this tension with common strategies. They cultivate four types of connections — to place, routines, purpose, and people — that help them endure the emotional ups and downs of their work and gain energy and inspiration from their freedom.