4 Ways Freelancing Helps The Global Labor Market

3 Ways Tech Is Empowering Freelancers | by Verlocal | Verlocal | Medium

Online platforms have altered the way millions of workers find jobs over the last decade. The headlines have been dominated by Uber and Deliveroo, which have raised record amounts of money and spawned a new class of gig economy workers. However, freelancing and micro-tasking platforms such as Upwork and Freelancer, which enable consumers to source various workers, are growing in popularity and, arguably, have even more potential to alter the future of work. Freelancing is a new way of helping the e-commerce of each country. Below are ways freelancing shapes the world in general.    

  1. Reduction in youth unemployment

A persistent problem for many developing countries throughout the Middle East, North Africa, Sub-Saharan Africa, and South-East Asia, youth unemployment has proven to be an intractable problem. In Egypt, for example, the youth unemployment rate in 2019 was 31.05 percent, demonstrating the critical need for young people to look for non-traditional types of employment to support their families.

Freelance jobs provide an unmissable opportunity to obtain valuable experience while also avoiding the economic problems that can arise due to the high levels of unemployment that are characteristic of developing economies. Moreover, as technical proficiency is required for remote working, it is not unexpected that the younger generation is already among the most favored beneficiaries of online outsourcing.

  1. Potential to earn more

Even though the economic impact of freelancing on an individual worker varies depending on the platform you use, the type of work you perform, and the level of talents possessed, it has been proven to be financially lucrative. For example, according to a World Bank analysis, full-time online workers in developing nations such as Kenya, Nigeria, and India earned more than their counterparts in traditional employment.

This additional revenue enabled the respondents to satisfy their necessities better and support their family members while also pursuing their educational and career objectives.

  1. Closing the wage gap between men and women

Despite the number of women entering the labor market in numerous industries in emerging nations, a persistent pay gap persists in many of these industries. For example, in some countries like Lebanon, women are subjected to wage discrimination in the education and medical sectors. Nevertheless, according to Payoneer, the wage disparity is narrower in the gig economy. An equal-wage man and woman working the same freelance gig earn 84 percent of what a woman makes. That’s a significant increase from the 64 percent margin in the traditional work environment.

Women who work as freelancers also earn more than women who work in traditional jobs. Because most freelance job offers include fixed pay rates, it is easier for women to make as much as males in the same field. Whatever their gender or ethnicity, as long as the freelancer meets the required criteria, they will be paid on time and receive their total compensation.

  1. Freelancing encourages the development of new skills.

Independent work promotes the development of a highly skilled and technologically proficient labor force. As a result, to achieve career excellence, outsourced employees must put forth the necessary effort to gain competency in information technology and internet literacy and improve their communication skills to negotiate their contracts and secure employment successfully.

They also learn how to budget their cash, schedule their time, and develop management skills. Unlike regular employment, gigging provides gigsters with more excellent opportunities for professional development and general improvement. Employees who work full time tend to become comfortable over time because their wages are guaranteed for a set amount of time. Due to the intense competition in the gig economy, freelancers, on the other hand, are believed to be more motivated to achieve their objectives and to satisfy their clients than employees.