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Harness gig economy to remedy skill shortages and EU uncertainty

by Susie Hughes at 11:13 10/08/16 (News on Business)

The legal status of ‘gig workers’ must be clarified so that businesses and individuals can thrive, according to a new report from agency trade body, the Recruitment and Employment Confederation (REC).

Gig economy - The Uberisation of work explores the impact of digital work platforms such as Upwork, Task Rabbit and Freelancer.com, which act as marketplaces matching freelancers with a wide range of project-based work. Almost a third of all UK employers are predicted to use digital work platforms by 2021. The REC has called on policy-makers to ensure that the gig economy is fair to self-employed workers and businesses, and to secure benefits for the UK economy. Key recommendations to Government include: Ensure that gig workers and businesses have recourse for instances of bad practice. Clarify the legal and tax status of gig workers and ensure they get the same protections as other self-employed workers. Look to services such as the Low Pay Commission to determine fair pay for gig workers. Ensure the same rules governing the recruitment industry apply to digital work platforms, so that businesses can compete on a level playing field. Mainstream REC chief executive Kevin Green said: “The gig economy is predicted to add £45 billion to the UK economy and create work for 766,000 people. Gig working is heading for the mainstream. Advertisement “This is good news for employers who will welcome tools which help them access the global talent market. The UK is close to full employment and businesses across the economy need to react to skills shortages. Current uncertainty around how the UK’s relationship with the EU will affect the jobs market is another driver for innovation. “Harnessing new technology which facilities gig working can provide real solutions to embedded labour market problems, but policymakers need to get to grips with these new trends so that the UK can make the most of opportunities. We must ensure that freelancers, interims and contractors who find work this way are protected. For the recruitment industry we want a level playing field on which to compete.” This report has been produced in partnership with job site, Indeed, whose Managing Director, Bill Richards, said: “The gig economy is disrupting traditional notions of employment. Just 13 per cent of British people think they will be working in traditional nine to five jobs by 2025. "Online job search and the rise of digital work platforms is creating a wealth of opportunities for the temporary market, with flexible working patterns a driving force behind the gig economy.” Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2016

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