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The Gig Economy

Decent Essays

Across the world vast majorities of workers are undergoing a series of major employment cataclysms. The deindustrialisation of the major western economies over the past thirty years has stimulated the emergence of new economic powerhouses, the global influence of neo-liberalism, and the associated transformation of the capital-labour contract, of which have all radically altered and shaped employment across the industrial world (Saad-Filho, 2002). In the context of these pro-capitalist dynamics, work as a whole is undergoing further transformation as jobs are now veering away from traditional employment models in favour of neo-liberal organisational systems (Bellucci, 2015). Unfortunately, such significant changes in international industrial …show more content…

More specifically, individuals are espousing ‘self-employment’ and contingent work over more traditional roles (Cherry & Aloisi, 2017). Economists share contrasting views of the ‘gig economy’; some argue that the gig economy is a hindrance to world economy and is in fact just an opportunity for capitalistic empires to take advantage of cheap labour with little economic risk, whilst others argue that contingent work is beneficial to the employment world and is the new future of work (Scheiber, 2015; Cherry & Aloisi, 2017; De Stefano, 2015). This report will analyse the gig economy in depth from an industrial relations perspective, highlighting the major benefits and downfalls of contingent work for employees, its appropriateness in the modern world and the economic future of employment in order to determine which apposing argument is the most …show more content…

Many employees, especially those of Generation Y, are uninterested and dissatisfied with the traditional 9am-5pm Monday to Friday work routine and exhibit an increasing need for flexible and diversified work (Friedman, 2014). Others, unable to secure full-time employment in the continuously challenging labour market, have turned to freelance work out of necessity. Regardless of the motivation behind freelance work, it is indubitable that this mode of work is rapidly growing in conjunction with the emergence of digital freelance marketplaces. Employees are progressively reshaping their careers with these opportunities by working on a task-by-task basis for different employers concurrently, a trend that has been termed the “gig economy” (Friedman, 2014). The Ernst & Young (2016) report states that globalisation and the fallout from the financial crisis are fuelling the “gig economy”, with a 66% increase of contingent/freelance workers in the past 10 years (Storey, Steadman & David, 2016). As of early 2015, 4.1 million Australians were recognised as part of the Australian “gig economy” which made up 32% of the Australian workforce (Storey, Steadman & David,

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