Gig work

What we now know as "Disruptive technology can be defined as technology with the potential to create disruptive innovation at any of" (Millar et al., 2018, p. 255) the following points: in an "industry segment", in an "industry structure", or in a "social system" (p. 254). Technology has disrupted the social system of the standard employment relationship (SER), or the job market (Millar et al., 2018; Stanford, 2017). Whereas once we were employed geographically close to where we lived, often in long-term employment; post-internet - and facilitated by mass public transport - work has potentially become global (Volkin, 2020). 

While what we know today as the 'gig economy' seems new, the concept has been around since we began exchanging labour for remuneration (Stanford, 2017), although since 2010 this has been facilitated by the development of smart phones and building of fibre networks. This has resulted in the ability for us to have short-term employment, to do gig work, and to work from home, or WFH (Lawlink, 2020). This type of "short term and on-demand professional relationships which are flexible and skill based" have been hitting new highs since the Covid-19 pandemic (Koh & Gan, 2021, p. 21). It is estimated that over a third of the US workforce are gig workers (Ellison, 2019).

There are advantages to gig work - flexibility with hours and location, potentially promoting better balance (Barrett, 2020) -  but as digital businesses continue to grow, so will both the demand for gig workers and gig worker demand for flexibility (Service, 2017).  The gig economy's influence on various regions varies, influenced by digital technological infrastructure, population density, and industry emphasis. Some areas may emerge as gig work hubs, while others might face inequalities in economic opportunities. In March 2022, India contributed 25% of the online web-based labour market, despite India's share of the digital labour platform (DLP) global revenues being only 3% between 2019 and 2020 (Tay & Large, 2022). DLPs are significant in casual work and the gig economy for cutting costs and boosting advancement opportunities. 

However, while some workers find DLPs flexible and lucrative, but some face disadvantages like low pay, unpredictability, instability, and poor conditions (Tay & Large, 2022). The increase in gig worker demand definitely comes with a build-in problem: gig worker environments are largely unregulated, so these workers lack support within our current legislative frameworks (Lawlink, 2020; Stanford, 2017). We have moved risk from employers to employees (Stanford, 2017), and when “gig work increases at the expense of more permanent employment without improving worker protections, risks and costs would shift from employers to workers” (Riggs et al., 2019, p. 5). This shift is happening.

As a result, gig work becomes a further aspect of Labour Market Information (LMI) on which we as career practitioners - to best support our clients - need to remain informed.

Sam, Lori, Kris and Karen

References:

Barrett, N. (2020, October 21). A complete guide to freelancing and the gig economy. Canstar. https://www.canstar.co.nz/kiwisaver/guide-to-freelancing/

Ellson, S. (2019). Gigsters - Any Age or Ability Employees, Experts and Entrepreneurs. 120 Ways Publishing.

Koh, D., & Gan, W. H. (2021). Chapter 1: Work and Health. In Textbook of Occupational Medicine Practice (5th ed., pp. 1-34). World Scientific Singapore.

Lawlink. (2020, March). The gig economy – a changing workforce. https://www.lawlink.co.nz/article/the-gig-economy-a-changing-workforce/

Millar, C., Lockett, M., & Ladd, T. (2018). Disruption: Technology, innovation and society. Technological Forecasting and Social Change, 129, 254-260. https://doi.org/10.1016/j.techfore.2017.10.020

Riggs, L., Sin, I., & Hyslop, D. (2019, November). Measuring the “gig” economy: Challenges and Options [working paper 19-18]. Motu Economic & Public Policy Research. https://www.productivity.govt.nz/assets/Documents/4a91b2689d/Measuring-the-gig-economy-Motu.pdf

Service, G. (2017, May 19). The gig economy’s benefits and risks. New Zealand Business. https://nzbusiness.co.nz/article/gig-economys-benefits-and-risks

Stanford, J. (2017). The resurgence of gig work: Historical and theoretical perspectives. The Economic and Labour Relations Review, 28(3), 382-401. https://doi.org/10.1177/1035304617724303

Tay, P., & Large, O. (2022). Making it work: Understanding the gig economy’s shortcomings and opportunities. https://www.institute.global/insights/tech-and-digitalisation/making-it-work-understanding-gig-economys-shortcomings-and-opportunities

Volkin, M. (2020, March 27). Why The Gig Economy Will Drive The Future Of Employment. Forbes. https://www.forbes.com/sites/forbescoachescouncil/2020/03/27/why-the-gig-economy-will-drive-the-future-of-employment/#6218d5d44f52

* Lori Yau, Kris Porter and Karen Bennett kindly prepared much of the material for this post