Gig employment effective through contract work instead of a permanent position and employees are hired for projects instead of long terms has been on the rise in the last decade. The current digital systems of social distribution such as Uber, Airbnb and Upwork means that more and more people are seeking flexibility in the type of working arrangements they choose, while more and more companies are turning to the gig economy to source their workers. Now, immaterial of the change in technology and growth of the culture of dependency on the gig economy is set to become even more revolutionaryist, productive and transformative forecasting the future of human relation and interaction, the way people will carry out their business and livelihood.
Technological Advancements: A two-edged weapon
Another area that has greatly propelled the future of the gig economy is the technological factor. Technology, in general, specifically AI, machine learning, and automation are set to disrupt some business verticals and industries, thus eliminating some roles while bringing new ones to the table. On the one hand, it is capable of enhancing efficiency and cutting costs and therefore help companies expand at a much faster rate. However, the shift to automation may possess a negative impact, including job losses for several gig workers where the use of Robots are feasible.
Yet, it is also enables new forms of gig work too. Companies that use AI to connect freelancers to jobs that they can do and which they are interested in have started coming up. These platforms can also assist with workers in identifying more highly paid and satisfying jobs, and time to search is decreased. Further, blockchain technology may bring visibility to and safety into the gig market transactions as well as fair pay to contractors.
Changing Workforce Demographics
Another factor which will determine the future of the gig economy will be its demographic changes. One of the generations that embrace the gig economy is the millennials and generation Z because they consider work-life balance and flexibility essential. This trend is set to reach new levels as these younger generations assume the lion share of workforce in leadership positions. Moreover, the more experienced workers will continue to work long past the retirement age, and the need to earn a living shall also fuel the gig economy.
These are the type of changing demographics that are going to generate a richer and more flexible gig workforce. Employers will have to find ways to appeal and maintain the employee relations with the new and diverse class of workers. This can include extending gig workers' benefits like other job offers health and retirement benefits, or inventing channels to build and progress one's career in the gig economy.
Regulatory Challenges and Opportunities
It must, however, be said that the gig economy being as large as it is now will soon encounter certain legal issues. Countries for their part are struggling on how to deal with gig workers in order to accord them proper legal status with delivery of appropriate benefits among others. The labor classification of gig workers either as independent contractors or employees poses major implications in terms of labor, taxation, and social security.
An example of this is the ability of the gig economy to get new legislation in the future that will be created with more regard for this business model. These frameworks could create both, freedom of gig work for workers with acceptable security nets that would provide for social protection. For instance, there are already portable benefits being tested in some countries where gig economy workers can attach benefits such as health or retirement to a particular job without necessarily being tied down to that job. Such models — if successful — might be applied elsewhere, creating a more paradigmatic fare for gig workers.
Platform Cooperatives in the New Economy
There is another trend that can define the future of the gig economy, and this is the cooperation platforms. Platform cooperatives can be distinguished from conventional gig economy platforms in that the latter are usually owned by private business entities, while the former are owned by the workers themselves. From this model, gig workers will get a better slice of the pie and have some influence over their working environment.
Platform cooperatives might as well gain more popularity among the populace since more and more workers are not satisfied with the decentralized gig economy that is characterized by low wages and instable employment. To create more sustainable and fair gig work cooperatives should involve workers more directly, giving them an ownership over the platform. But for this model to scale up, platform cooperatives will require funding, which is public or private, and favourable policies.
Internationalisation of Work and the Platform Economy
What has to be highlighted here is that gig economy is not some sort of pathology which is peculiar to a particular country or a particular part of the world. As Internet connection becomes better, and Internet platforms more commonplace, independent contractors can sell their work to clients globally. The current push to the global expansion of the gig economy has its advantages and downsides.
On the positive side, the gig workers in the developing countries they get an opportunity of getting richer paying jobs from the clients in the developed countries and this may reduce the rates of poverty. But globalization also leads to more intense competition for gigs among the freelancers and exertion of downward pressure on wages and work opportunities for persons. It is only in the future that international frameworks might be put in place to solve them and make sure that the impact of the global gig economy is more fairly spread.
Analytics when it comes to the gig economy the projections for its growth demonstrate that the platform economy will carry on increasing in 2020 and beyond as a result of technology, demographic adjustments and innovative legal frameworks. As for the further development of the gig economy, the benefits of which look great, it is necessary to note the challenges that will have to be faced.
