Digital inclusion and the new world of work

It is said that the digitalisation increases opportunities in the globalised world. It can create new options for finding jobs beyond the place a person lives. The digitalisation has also a great potential to promote inclusion of those who may face barriers is finding employment, for young people, women, individuals with disabilities and those in remote areas. The ETF research conducted a small reality check. We looked at the new forms of work, increasingly popular freelancing and platform work. Platforms and freelancing agencies provide access to global markets and clients, particularly for remote and highly qualified workers. Platform work is becoming more and more attractive because of its lower entry barriers, in terms of formal skills requirements, and flexibility of working locations and schedules. These are also related, at least in part, to the reduced burden for workers and clients compared with traditional recruitment and employment procedures.

And this is what we found:

• Notwithstanding the relatively low barriers for entry to the online labour market, there are preconditions that must be fulfilled. For remote work, the basic requirements relate to regular access to a computer with an internet connection, at least basic digital skills and very often knowledge of languages. For on-location work the requirements relate to possession of a means of transport and a mobile device with an internet connection. Unfortunately, more disadvantaged persons – such as women, those from ethnic minorities, older persons and rural residents – also tend to have poorer access to digital technologies and are underrepresented in the digital world.
• At the same time, strong global competition between freelancers introduces additional conditions in terms of skills, availability and performance.
• The analysis leads to the conclusion that the inclusiveness potential of the digital labour market has not yet been tapped. It largely mirrors existing inequalities in traditional labour markets and also seem to replicate, suffer from or reinforce many of the pre-existing flaws.
• Platform work, for instance, introduces unprecedently efficient global matching of labour demand and supply, while creating new and flexible work opportunities. However, it also often fosters informality, income instability, and uncertain working conditions limited access to social security.

Last December the European Commission put forward a proposal to improve the working conditions of people working through digital labour platforms in the European Union. A wide consultation and discussions preceded and shaped the proposal. A dialogue between the institutions, platforms, social partners and academia is continuing (see for example the Reshaping work multistakeholder dialogue and its very recent report).

But what does it mean for the ETF partner countries? Will the EU legislation set new standards to be followed by other countries? Or rather international players would expand their activities in those countries profiting from unregulated environment?

We will continue observing and we will be happy to get your views and discuss further!