HOT JOB MARKET FOR GIGGERS MAY LEAD TO LUKEWARM OVERALL ECONOMY.

• Author: Romig, Suzie
• Position: FREELANCE ECONOMY

Rural Northern Colorado resident Leslie Lovejoy worked for decades as a freelance graphic designer and massage therapist, enjoying the flexibility that gig work gave her schedule. That was until she and her husband, a self-employed house painter, applied for a home construction loan. The banker told Lovejoy she needed to show standard income from a "real" job to qualify for the loan.

"When you are doing gig-type work, you are sacrificing a lot, and unfortunately that's where the job growth has been," said Jessica Valand, director of Workforce Development for Northwest Colorado with the Colorado Department of Labor & Employment (CDLE).

Working in the gig or freelance economy is appealing to many self-motivated individuals due to the flexibility, variety and work-life balance. The fourth annual Freelancing in America study released in October, commissioned by Freelancers Union, notes the freelance workforce grew at a rate three times faster than the U.S. workforce overall since 2014 and estimates that freelancers represent 36 percent of the current U.S. workforce.

A gigger may work as anything from web designer to DJ to Uber driver, and some workers paste together a decent salary wearing different hats in more than one occupation. Or consultants in skilled areas might excel despite navigating the tricky waters of different clients.

"Part of what is driving the increase in 1099s (form of payment) is a growth in part-time jobs. Workers need to fill those hours with income somehow," Valand noted. "A growth in part-time, typically un-benefitted jobs has a direct relationship to the need for workers to engage in informal earning platforms to plug the holes."

Valand reasons that the large growth in the gig economy might not be healthy for the overall economy long term. Labor laws and employee protections in the U.S. have not kept up with the gig revolution. She points to a common benefit in the European Union where businesses contribute retirement funds to contingent workers through an Individual Savings Account that follows the employee across jobs.

"A lot of people don't necessarily understand that when you are doing a gig-type job, you are not an employee in the traditional sense," said Valand, who earned a master's degree in economic development from the University of Denver. "The difference for someone who is employed, as compared to someone who is earning income but isn't anyone's formal employee, is huge--both in terms of total compensation...