PLATFORM ENABLED GIG WORK

Taamara de Silva calls for transparency, accountability and fair ownership

As the COVID-19 pandemic hamstrung a large part of the economy the world over, we saw consumer demand plummet, multiple businesses close down and millions of workers left helpless as their jobs became redundant.

However, it has blessed the nascent sliver of the digital economy that helps people channel their existing skills into sellable products and services. A notable rise in demand for online content in spheres such as education, lifestyle and recreation, home beautification, food and entertainment has supplemented the gig economy.

Instead of the traditional permanent job with a single company, gig workers pursue short-term, temporary or independent contracts with one or more employers.

Companies operating digital platforms for individuals to hire their skills and services to businesses or consumers have experienced rapid growth in recent years, and disrupted a range of sectors from ride hailing apps to professional services.

Digital services platforms offer considerable benefits to consumers, workers and employers, and can be classified according to their complexity and locality. These platforms can easily be localised or scaled across borders – unlike outsourcing, which took place between developed and developing economies in the past.

Almost12 million freelancing knowledge workers serve around five million clients, which include both startups and Fortune 500 firms through the Upwork platform.

There are push and pull factors behind the rising number of people engaging in platform work. Notably, there’s a growing preference for more flexible and autonomous work arrangements while economic insecurity has seen a major shift towards side hustles.

In developed markets where real median wages are stagnant, occasional platform work can help people bolster their incomes. Similarly, in emerging markets where the informal economy accounts for a large share of employment opportunities, platform work has offered a more secure and professional alternative.

Whether this is a good or bad thing has been the subject of furious debate. From many corners, we have witnessed concern and lament over the loss of good jobs, as well as steady incomes.

Gig workers too have often been portrayed as overworked and undercompensated millennials who are indebted to a dizzying assortment of pinging and buzzing apps with no chance of getting ahead in their professional careers.

Yet, tech investors have dubbed this the ‘passion economy’ – a place where anyone can profit doing what they love to do. For some, a side hustle is a creative channel outside the daily grind. For most, it’s a means to achieving financial freedom and being able to live on one’s own terms.

According to Moody’s, it could take four years to recover the 80 plus million jobs lost during the pandemic. Job losses are concentrated in virus sensitive sectors such as retail, leisure and hospitality, all of which disproportionately employ low wage and contract workers.

Gig economy income statistics show that wages grew by 33 percent last year, according to Business Wire. The gig workforce earned US$ 1.7 trillion (a substantial increase from 1.2 trillion dollars before the pandemic in 2019) – this is a testament to the powerful influence of the gig economy on supporting employment.

The COVID-19 pandemic however, has put many platform workers on the spot. Even though platform work offers flexibility, workers have limited access to unemployment benefits, health insurance or sick leave. And transparency has been a major concern to see what work is done and by whom.

In order to minimise exploitation, transparency is required on all fronts. Users, investors, workers and regulators need to be aware of the nature of the jobs created, and how they might potentially fall short of decent work standards.

Accountability is needed across industries as many platforms tend to exploit regulatory gaps as they don’t have long-term contractual obligations with workers.

Take for instance, Uber’s desire to be an ‘operating system for your everyday life.’ We must ask ourselves whether we want a privately managed platform run by an unaccountable company located in another country.

The real future and sustainability of the gig economy will depend on the level of transparency, accountability and democratic ownership. Responsible platform businesses will have to play a critical role in shaping new labour markets and designing new social contracts going forward.

The true value of the gig economy isn’t in its intermittent income streams or the unconventional hours – it’s in the mindset it breeds. For many people, it has instilled the tenets of entrepreneurial hustle and introduced the idea of being your own boss.

And the underlying aspiration is great – i.e. to be the master of your destiny… and perhaps even find fulfilment in your work.