The Gig Economy and the Future of Work
The COVID-19 pandemic has accelerated the transition from standard to non-standard forms of employment (NSE).
Non-standard forms of employment differ from standard employment in the nature of labor relations, working conditions, and working hours. For example, a fixed-term employment contract or part-time employment.
The growth of NSE is a global phenomenon, but more than 80-90% of temporary contracts are in developing countries. As the World Bank notes, non-standard forms of employment create additional opportunities for the labor market - they reduce labor costs and provide greater organizational flexibility in meeting short-term needs.
On the other hand, NSE reduce incentives for optimizing work processes and investing in the professional development of employees. In addition, non-standard forms of employment are in most cases not covered by social protection programs. The World Bank recommends developing measures to mitigate the negative consequences of the introduction of NSE. The main ones include harmonizing the rules of standard and non-standard employment, reforming social protection systems, and supporting lifelong learning.