The Changing Nature of Work: 30 signals to consider for a sustainable future

SIGNAL 14. The gig economy

The gig economy is not a new concept; however, in the past few years, the elements for understanding this phenomenon have changed. Generally, the gig economy is based on independent workers receiving a payment in return for completing a task on demand. Technological advancement and the popularization of digital platforms have significantly influenced the concept, turning tech-based solutions directly connecting consumers and workers into a vital part of the gig economy.

The number of gig workers is continuously growing across the region. For instance, the average labour market share for the European Union is 13.5 percent; however, in Greece and Turkey, gig workers represent more than 30 percent of the labour market. Gig workers could be classified into two groups: fully self-employed workers, and those who work in the gig market for a supplementary source of income. The latter is strongly represented in the IT sector. According to research by Boston Consulting Group, 24 percent of IT specialists perceive freelance work as extra income. Continuous digital expansion, companies’ search for efficient processes, new findings on brain science, and the recent outbreak of the pandemic are strong signals that the gig economy will grow at an even faster pace in the future. What are the factors to be considered with the rise of the new working model?

• Migration. The development of digital platforms allows professionals who want to work independently to engage with potential customers from all over the world. This situation has slowed the phenomenon of brain drain in countries like Ukraine, Serbia and Romania, where freelancers registering on global gig platforms are continuously growing. For instance, Serbia represents one-third of all the freelancers present on the Upwork platform in the region [63]. Still, experts predict that with the growth of the self-employed, highly skilled workforce and the gig work model turning into a prime source of income, this trend may result in the workforce migrating to countries with better developed policies and securities for gig workers.
  
  
• Fixing insecurities. The rise of the gig economy provides numerous work models such as the fixed-term, project-based, zero-hour contract and freelance. This situation offers more space for flexibility and creativity, and is inspiring to gig workers. It also provides access to highly skilled professionals across the globe and increases the efficiency of companies. A side effect of this set-up is rising insecurities. Gig workers do not get access to traditional benefits and reward packages that are often part of traditional full-time work. Due to the novelty of the gig work models, these benefits have not yet been provided..
  
  
• Education. The gap between higher education supply and the labour market demand is growing. Universities fail to provide the skills and knowledge that would adequately fulfill the growing expectations of employers. However, this issue is not limited to major players in the labour market and also applies to the gig economy. While universities are first among those who boost this phenomenon by hiring gig professors and introducing distance learning, no adjustments have been made to the curricula in most universities across the world, and career centres at universities continue to focus on major employers without preparing students for a possible gig career path. Indeed, this situation explains the rise of platforms such as Coursera, LinkedIn Learning, Udemy and others. The flexible structure introduced allows them to respond to market needs almost immediately. We may see more of these platforms in the coming future.
  

Check out the next signal, #15: Remote work and the virtual office

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The Changing Nature of Work: 30 signals to consider for a sustainable future

Work helps sustain livelihoods and largely determines the quality of life. Its changing nature is at the frontier of development. This report is the result of a broad horizon scanning by six UNDP Accelerator Labs across Europe and the Commonwealth of Independent States.  They reveal 30 signals that shape the “where, who, how, and why” of the changing nature of work. From the impact of COVID-19 on the workforce to new work models and entrepreneurial ecosystems, the authors explore opportunities and threats, as well as solutions from local contexts that can be scaled up into positive answers to the challenges people around the world are facing.  Download the full report here.