What Is The 'Gig Economy'? Don't Worry If You Don't Know, You Aren't Alone

Do you know what the "gig economy" is? Don't worry if you don't, as most Americans are unfamiliar with the topic.

According to WhatIs.com, a gig economy is an "environment in which temporary positions are common and organizations contract with independent workers for short-term engagements."

One of the most common names that best exemplifies the gig economy is Uber, whose car-hailing app connects those that need a ride with an independent contractor looking to use their car as a tool to make some money.

Despite the growing popularity of Uber and other gig economy services, such as Airbnb, 89 percent of U.S. adults aren't familiar with the term gig economy.

Related Link: Uber's Rival And Apple's Latest Investment May File For A 2018 IPO

Aaron Smith, associate director at the Pew Research Center told CNBC's Bertha Coombs that there is a "good chunk of Americans who don't use these services and don't even know they exist." On the other hand, there is a "portion of the public that's really invested in these services."

Among the most knowledgeable and heaviest users of the gig economy is college graduates and households earning at least $100,000. In fact, 41 percent of Americans with an annual household income above $100,000 have used at least four platforms that are considered part of the gig economy.