OVER the past decade, gig economy and freelance work have transformed the global employment landscape. The Covid-19 pandemic had accelerated the growth of the gig economy as people who stayed at home, to minimise contact, opted for online delivery services for their daily needs and consumer necessities.
According to a report by Mastercard, global transactions associated with the gig economy will grow by 17% per year to approximately US$455 billion (RM2.05 trillion) by 2023. Due to the rapid growth of the gig economy in recent years, the term “gig worker”, – which is generally associated with blue-collar workers – has moved beyond its original definition.
A growing number of white-collar workers today are making the switch away from
nine-to-five office jobs in favour of freelancing. In Malaysia, more than 26% of the workforce, or about four million freelancers, are now part of the gig economy.
It is also worth noting that, based on the results of a study in 2020 conducted by Zurich Insurance Group and the Smith School of Enterprise and the Environment at the University of Oxford, 38% of Malaysians currently employed full-time are considering joining the gig economy within the next year. It was also found that this percentage was considerably higher than the global average
of 20%.
Growing trend
The employment models available to people in the modern world have become more flexible than before. People no longer need to rely on traditional nine-to-five employment to make ends meet and provide for themselves. Rather than work in a traditional-scheduled work day, they are embracing a more creative, efficient and flexible work life, taking on
short-term assignments as they deem necessary.
The use of e-mail and telecommunication has also enabled work to be more flexible as people are able to work remotely “together” regardless of where they are geographically located. This has allowed the gig economy to flourish over the past few years.
There is also growing evidence that the gig economy is gradually becoming more attractive to students, parents with young children and people who otherwise work as home health aides, and those looking for new employment opportunities.
Gig economy on a global scale is also being driven by a generational shift in the workforce that is occurring at this particular point in time. It is estimated that as Baby Boomers and Gen X retire, we will see Millennials taking over the workforce, and they are known
to value independence and a balanced
work-and-home life considerably more than their predecessors.
To meet their financial obligations, this generation has begun to turn to gig work, as flexibility and independence play an increasingly prominent role in how they structure their working lives.
The work landscape has also been affected by the emergence of a new phenomenon known as “Quiet Quitting”. This phenomenon has been generating millions of views on TikTok in recent months as increasingly young professionals reject the idea of advancing in their careers, describing their lack of enthusiasm as a form of quitting to avoid burnout in the workplace.
Consequently, many of these professionals have turned to working a second job or becoming freelancers to pursue their passions.
Implications of “Quiet Quitting” phenomenon
Companies should take steps to prevent this kind of disengagement from occurring, and speak to all employees on how they are valued and appreciated at work.
There is no doubt the gig economy
provides companies with an unprecedented opportunity to redefine their workforce structure. Taking advantage of it and relying more on a contingent workforce may not be such a bad idea for employers.
Additionally, this would allow companies to scale teams as the need evolves, especially for jobs that cannot be performed remotely.
The gig economy is expected to provide Malaysia with sustainable and inclusive economic growth. It has been included in the 12th Malaysia Plan for 2021 to 2025, and the government is taking steps to regulate the sector to ensure workers’ welfare.
As part of our mission at FastGig, we are dedicated to connecting gig workers and freelancers with forward-looking employers and businesses to facilitate the growth and success of this new segment of the economy.
Joelle Pang, General Manager,
FastJobs Malaysia.
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