The temporary online freelance economy, sometimes referred to as the gig economy, is a growing trend in the global economy. This economy represents up to 12% of the global labor market, and employs about 435 million people around the world.
In developing countries, online freelancing platforms open up unique employment horizons, as well as providing great potential for youth, women, and people in remote areas who may have been excluded from traditional labor markets, according to the World Bank in a recent expanded report.
However, before going into the details, it is worth distinguishing between two types of the freelance economy that are often confused. The first is what is called the “temporary freelance economy” or “the gig economy.” This is what the World Bank intended in its aforementioned report, and what we will discuss in this report.
The second is the “Freelance Economy”, which is another type that is more developed and growing than the first type, and is staffed by professional and highly experienced workers. World Bank data show that 46.7% of all workers around the world currently are workers in this sector. The value of the global freelance platforms market is $3.39 billion, and it is expected to reach $9.19 billion by 2027, according to what the Exploding Topix platform recently reported.
Flexible jobs that do not require a high level of training
The first term refers to the labor market where temporary or flexible part-time jobs are widespread, and are employed by independent people who do not have a high level of training and qualification, such as taxi drivers (Uber), workers delivering food orders and various goods, graphic designers, or house renters. Online, and there are many other platforms that meet the demand and need of a wide range of industries and professions, and this work is done through special applications on the Internet, and provides an additional source of income for these workers, and in many cases it is the only source of income for them, especially in developing countries where young people suffer. There is brutal unemployment.
In addition, temporary online freelance work provides a necessary source of income in times of shocks and transitional periods (such as during the Corona pandemic), helps build digital skills for younger and less educated workers, and provides flexible earning opportunities for everyone.
Online temporary freelance platforms also provide a cost-effective source of cheap labor for small and emerging companies, thus supporting these companies in maintaining productivity and flexibility, and adapting to rapid market shifts.
The pace is faster in developing countries
According to a World Bank report, we find that the demand for freelance labor via the Internet in low- and middle-income countries is on the rise, and is proceeding at a faster pace compared to industrialized countries. In Africa, job advertisements published on a large digital platform for labor increased by 130%, while their growth rate did not exceed In North America, 14% from 2016 to 2020.
Interestingly, the lower segment of developing and middle-income countries contributes more to the demand for online temporary freelancers than the upper segment of these countries, the main reason for this is to meet the needs of small and medium-sized businesses.
Problems and challenges
In the same context, the World Bank stated in another report entitled “Work Without Borders: The Promises and Dangers of Temporary Freelancing on the Internet” that the vast majority of temporary freelancers on the Internet face many risks such as: instability of income, difficult working conditions, and limited ability to work. Savings, and this labor does not enjoy social and health protection, especially in low-income countries, as more than 90% of the workforce is not included in social insurance and is not subject to labor regulations and laws in these countries, according to the World Bank.
The World Bank urged the governments of countries to work to expand the scope of social protection. Several countries around the world are taking steps in this direction, as they work with platforms and companies that generate this type of work to ensure the inclusion of workers in social insurance systems. For example, the government in Malaysia cooperated with one of the temporary freelance work platforms online to provide a contribution of 5% to workers who They participate in the government retirement savings program and social security institutions.
new Horizons
Although temporary online self-employment is still a new and rapidly developing form of work, it is firmly established in low- and middle-income countries, offers a possible way to overcome unemployment, increase income, and opens the way for workers to connect to job opportunities globally.
Studies indicate that 79% of individuals who work in the gig economy feel more satisfied than when they were working in traditional jobs.
This type of employment also provides an opportunity for a growing group of young people who are enthusiastic about learning digital skills and expanding them with the aim of earning work and escaping the clutches of unemployment that threatens a large number of young people in developing countries. It also represents a practical option for women who face great restrictions in the labor markets. Traditional. This type of work has become a flexible source of talent that entrepreneurs and startup companies need to grow their businesses, thus creating more job opportunities.
