The attraction of the gig economy is often irresistible to entrepreneurs however the question arises how favourable it is for sustainable development.
Imagine a future where you can choose your own schedule, dress code, and work when — and only when — you choose. Only your ambition, apparently, limits your earning potential. Additionally, if your small business expands, you won’t have to pay for payroll insurance, employee benefits, sick leave, or vacations. You just pay for the work you require.
Overall, it appears to be a win-win situation for all parties involved, but is it favourable sustainable development? Yes, argue proponents of the gig economy, pointing to countries where the gig economy accounts for a considerably more immense share of the national economy and is flourishing. Opponents claim that these countries’ social structures are very different, making the gig economy more realistic.
“What do you call a musician without a girlfriend?” goes an old joke. Homeless.” Whatever your feelings about the joke, its message accurately portrays the negative side of the gig economy. It raises some severe sustainable development concerns:
Gigs offer no benefits
Paid vacation? Forget about it. Is it possible to get sick pay? There’s no way. Vacations that are paid? In your dreams, that is. Many of you are probably wondering, “They chose this life?” Perhaps they did, and maybe they did not. It makes no difference because the end outcome is the same. This is a problem that affects more than just the gig economy. Take, for example, dentistry. Due to the loss of dental insurance, many people in the gig economy have decided to quit visiting the dentist or, at the very least, cut back on their appointments. Consider vision insurance and the ramifications it entails. Dentistry, optometry, pharmacies, tourism, and so on — the list goes on and on.
Gigs replace full-time jobs
Many big organisations have a policy that allows a long-term employee to retire on Friday and start working as a consultant on the following Monday. With no perks or overhead expenditures, the same individual is doing the same work. Rather than backfilling the position, the corporation shifts one of its employees to the gig economy
Larger firms frequently outsource the most dangerous jobs to people, resulting in gigs
Most people don’t have the financial means to get sufficient regulatory training, and many small businesses are technically free from worker regulations.
The prospect of shifting big groups of employees to the gig economy appeals to larger organisations, but in reality, it’s a different storey. The gig economy is not favourable sustainable development or desirable due to the loss of the social safety net generally supplied by employer-paid benefits and the lack of a proportionate growth in governmental replacements for these benefits.
Can the gig economy become more favourable for sustainable development?
The positive impacts across the world have also seen negatives ones on the economy as well as on sustainable development.
The gig economy, which exploded during the depths of the 2008 recession, was a godsend for workers from all walks of life in both countries and around the world.
It had a number of beneficial effects, allowing people who were linked to the internet to work from home, perform full-time gigs, and provide for their families however it’s negative impacts towards sustainable development are to be noted as well.
Data entry and other modest chores generated new income streams for employees in even the most remote villages of Africa and Asia, giving them work options that they would not have otherwise had. In many situations, it has also helped to lift individuals out of poverty.
The more significant the impact of the gig economy on the world, the more it has increased. While it has had a reasonably beneficial financial impact in the less developed countries, its influence in the more developed countries and on a broader global scale has been controversial.
This is due to one simple reason: the gig economy has provided businesses with a way to hire people from developing nations at a lower wage.
On the one hand, startups and small businesses with limited resources can outsource time-consuming jobs for far lower wages, allowing them to expand more quickly.
On the other side, the same occupations are being taken away from city dwellers, or people from stronger economies are forced to accept wages comparable to those in Asia and Africa.
This has one significant consequence: earnings are required to be lower, which is insufficient to cover their living expenditures.
This is true for individuals working as full-time drivers for companies like Uber and those working as creative and admin professionals on Upwork and other freelancing websites. In fact, Silicon Valley behemoths like Facebook hire freelancers from all over the world to serve as “community moderators.”
Furthermore, freelance positions essentially remove employees’ responsibilities away from employers, which can significantly impact the country’s economy.
The problem is that the gig economy has virtually turned the entire planet into one giant marketplace. This is why regulating platforms that support the gig economy is challenging because different countries and entities have different standards.
So, how do we proceed from here?
While it is primarily a regulatory issue, workers need to have a voice, and companies that enable the gig economy should adhere to specific criteria to protect employees’ long-term viability and safety. Furthermore, they must set global benchmark pay to ensure that gig economy workers can make ends meet and maintain equitable working conditions.
To make the gig economy more favourable towards sustainable development in the long run, workers, philanthropists, and governments must support fair practices and working standards. This is not solely the job of non-profit organisations; it is the obligation of everyone active in the economy.