The gig economy has been typified by the inherent instability in work provided, with ongoing legal battles to ascertain whether gig workers are employers of the companies they work for or not, and therefore able to access the numerous social benefits that have built up around full-time work during the 20th century.
A new report from the Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) argues that the government needs to act faster than it currently is to ensure that we have a social safety net that’s fit for the 21st century rather than the post-industrial revolution era.
The suggestion comes in the context of 73% of British workers expressing concern about the rising cost of living, with growing concerns around debt, pensions and living standards. Indeed, nearly half of those surveyed for the report said they would struggle to pay an unexpected bill of just £100, let alone any larger economic shocks, whether from recessions or Brexit-related uncertainties.
The survey found a clear distinction between those in self-employed roles, who tend to be higher skilled workers, and those in non-standard, gig economy type work, which tends to be lower skilled and far more volatile. Such workers reported relatively low savings to cope with any fluctuations in earning.
Retaining is preferable
Retaining was the preferred option for many workers, with the popularity consistent across worker types. This could be within their current workplace or outside of their current employment, but unfortunately the report reveals that work related training has waned in recent years. The report says that 30% of workers received some training on the job in 2004, but this had slumped to below 25% in 2017, with what training that is provided focused heavily on those in professions with graduate level requirements.
“Meanwhile, a recent OECD study warns that low-skilled workers at risk of automation are three times less likely to participate than those in jobs more resilient to technological change,” the authors say. “Without adequate opportunities for lifelong learning, these workers will be ‘left behind’.”
The report cites examples from France and Singapore, where citizens are awarded a personal learning account to support their professional development. These are not dependent on particular forms of employment, but rather follow the citizen around wherever they may be employed to give them support in their training and development.
Consistent income
Workers also expressed support for the notion of being given help to find new work in the event of redundancy or temporary labor fluctuations. This was underlined by research from the London School of Economics, which highlighted the value people place in stable and consistent income.
The study found that workers usually prefer jobs that have characteristics commonly associated with more traditional forms of employment, with a permanent contract the most valued form of employment by some distance.
Indeed, even among those people engaged in gig-like work, some 50% would rather have a more traditional kind of employment relationship. It’s a situation the authors believe reflects the necessity of gig work rather than the choice of gig work. In other words, they believe many gig works resort to it as they have no other choice.
Alas, the RSA argue that much of the current welfare system is focused around moving people into low-paid and insecure work rather than providing them with the training to secure stable work. As such, they argue for a new welfare system that’s fit for the 21st century, with government taking a much more active role in supporting those from all income levels.
“More people are in a job than ever, but below the surface of record employment figures, increasingly we are seeing the link between hard work and fair pay collapse; work alone is no longer a route out of poverty,” the RSA say. “This could not come at a worse time for millions of families amid Brexit uncertainty, the potential for another a recession and the increasing prospect of automation of many routine roles.”
The incredibly precarious nature of the economy today renders both individuals and society at great risk of any economic shocks, and it’s beholden upon society to develop a welfare system that functions in this new and uncertain environment. The RSA played a leading role in the Taylor Review of Modern Working Practices, but it’s far from clear whether any of the recommendations made in that have been developed at a time when Brexit is consuming the full attention of policy makers across government.
“We need to see government creating the framework for employers, civil society, unions, social enterprises and digital start-ups to provide more help, including retraining and income support, while legislating for stronger rights for workers and a genuine living wage,” the RSA conclude.
