The Gig Economy: Modern Term, Classic Concept

It's a vast web of flexible work opportunities, but there are highs and lows to consider before diving in.

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Edited by other Updated Apr 9, 2026 When you hear "gig economy," app-based services, like Uber and DoorDash, might be top of mind. But freelancers, day laborers and temporary employees have been around forever. These days, having a side gig is kind of the norm. People who do either short-term work for an employer (like a substitute teacher) or operate as an independent contractor (like a rideshare driver or freelancer), accounted for 27 percent of all jobs held in 2024, payroll company ADP said in a November 2025 study. » MORE: Is "income stacking" a good way to build wealth? » MORE:

Why it’s called a gig

A gig (also called a side hustle) is generally a short-term task, project or job that a person does to make money. It’s a “gig” because you do the thing — give a ride, deliver a package, teach a lesson, walk a dog even work on a short-term contract — then move on to the next one. Some gig workers get paid per task or assignment. Others earn an hourly rate. And many people do gig work as a main source of income. Here's a NerdWallet writer finding out what gig work is all about ⬇️ Here's a NerdWallet writer finding out what gig work is all about

Ups and downs of gig work

Pros

Gig work can come with flexible hours, quick cash and the ability to set your own pay, depending on the job.

It can also mean extra money if you have a full-time job and want to supplement your income.

Cons

Prioritizing flexibility can result in irregular pay, no medical benefits and a more complicated tax process.

It can also cause financial stress if you don't bring in enough to pay your bills.

"Gig work is not a temporary phenomenon," the ADP study said. "It’s a permanent feature of the modern labor market. But the modest hours and persistent pay gaps suggest that it remains a supplemental, not primary, component of work for most people and employers." That said, with the way the job market goes up and down, looking into the gig economy might not be a bad idea.

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What to consider before becoming a gig worker

If you’re thinking about gig work, take these tips from our Nerdy side hustle tester, Tommy Tindall.

1. Research the pay

Rates can vary by location, experience and demand. Plus, the platform you get gig work through may take a cut of your earnings. Check the company’s website, reviews, and the Better Business Bureau for details. Tommy says: "Get as hands-on as you can before you go on your first gig." It's what he did before doing DoorDash. He took the time to go through the approval process and pass a background check, then studied the Dasher app (what drivers use to accept orders) for a week or so. Tommy says: "I got a good sense for when and where it was busy in my area. I even went live one day and declined a couple orders just to check the pay." Key question: Will you make more per hour than your state's minimum wage? Key question:

2. Be aware of potential costs

Some gigs come with expenses. For example, you'll be on the hook for gas, maintenance and vehicle insurance if you do rideshare or delivery. If you're a freelance marketing professional, you'll need your own laptop and relevant software services. Tommy says: "My primary vehicle is a gas-thirsty pickup truck. The cost of driving it to deliver burgers and tacos cut heavily into my earnings." Tommy says: Key question: Is running your car into the ground worth it? Key question:

3. Budget for taxes

When you work for a company, your payroll taxes typically come out automatically. Most gig workers, on the other hand, have to do the math themselves and may have a more complex tax filing process. Key question: Will you be disciplined enough to build self-employment tax into your budget? Key question:

4. Manage your time

Adding a side hustle on top of a 9-5 job can be a recipe for mental and physical burnout. Make sure the money and the satisfaction are worth the extra time and effort. Tommy says: "I tested Uber one weekend and put an extra $50 bucks in my pocket ... but I'd have given it back to be home on the couch watching baseball after what was already a long day." Tommy says: He says a freelance side hustle where he can leverage his soft skills to work for clients remotely would be more ideal. Key question What's your endgame? It could be to reach a specific financial goal, explore other forms of work, or skill up for a future career. Key question

An alternative to a gig economy side hustle

Maybe you can keep more of the money you have instead. Consider looking at your living expenses and finding easy ways to save. That might allow you to work fewer or better hours. » MORE: Clever ways to save money » MORE: Explore more on Article sources NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines. ADP Research. The gig economy: A tale of two labor markets. Accessed Apr 9, 2026. About the authors Schwahn Lauren Schwahn is a writer at NerdWallet who covers credit scoring, debt, budgeting and money-saving strategies. She contributed to the "Millennial Money" column for The Associated Press and managed a team of writers producing content for the series. Her work has also been featured by USA Today, MSN, The Washington Post and more. Lauren has a bachelor’s degree in history from the University of California, Santa Cruz. She is based in San Francisco. Published in Tindall Tommy Tindall is a lead writer and content strategist covering how to make money — and how to keep it. He’s recorded and written about his experience testing popular gig jobs like driving for Uber, delivering with DoorDash and full-service shopping for Instacart. He loves making an extra buck, but laments the hours of awkward silence he endured as an Uber driver (never again). Cool kids might call him a content creator because he makes YouTube videos for the NerdWallet channel and app, but he himself is no longer very cool. Ask him about budgeting apps — he's tried most of them, but still prefers a good ole Google sheet to track spending. Then be sure to smash that “like” and “subscribe” button. Before NerdWallet, Tommy held decidedly more boring jobs at Fannie Mae and Booz Allen Hamilton. Today, he feels super privileged to write for you, the consumer. Published in How to Become an Uber Driver: A Beginner’s Guide Game Apps That Pay Real Money: Truth, Not Hype Legit Ways to Get Fast Cash (Without Selling Plasma) 7 Ways to Get Financial Help From the Government How to Become an Uber Driver: A Beginner’s Guide By Laura McMullen, Lisa Mulka, Tommy Tindall Amazon Flex: What It Is and How It Works By Kelsey Sheehy, Lisa Mulka, Tommy Tindall How to Make Money as an Instacart Shopper By Tommy Tindall, Kelsey Sheehy Taskrabbit Jobs: What Real Taskers Say By Tommy Tindall How Does DoorDash Work? Making Money as a Dasher By Lauren Schwahn, Taryn Phaneuf