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In this changing framework, the so-called gig economy has become very important globally and in Europe. The term ‘gig’ refers to one-off action and, in the field of work, defines short-term work for very specific tasks, which involve a brief relationship between the worker and the recipient. This work is remunerated by the task carried out and, in many cases, it is understood that there is no stable employment relationship between the person who performs it and the company that contracts those services. The gig economy began to grow with the outsourcing of certain general services (maintenance, cleaning of buildings, etc.) several decades ago.

Digitization and the possibility of defining a task and hiring people through an app have accelerated its explosion in recent years, and even more during this year 2020. In a first approximation, this model provides flexibility and efficiency to companies, who can focus on the tasks in which they bring more value and outsource others. It offers more autonomy and flexibility of schedules for workers; offers comfort and better prices and quality to users; generates employment, although it does so through short-term work; and improves the fit between the work to be developed and the skills of the worker, positively impacting productivity. However, the implications of this model on people’s training and business productivity, workers’ working conditions and their contribution to supporting health spending and the pension system are enormous and pose unresolved uncertainties.

Yet, to date, Europe has proven comparatively slow, both in terms of integrating digital into existing sectors and in terms of taking advantage of the transformative nature of digital technologies. As a result, the emerging champions of the transition are today mostly found in the US and China. In this context, supporting the diffusion and adoption of digital tools, practices, business models in Europe, as well as a more dynamic business and economic environment will be critical. The restructuring of sectors in difficulty towards future-oriented activities is also essential to remain competitive on a global level, to create and retain high-quality jobs in Europe, and to support broad-based convergence – both the between Member States and between regions.

This gig economy has resulted in new outsiders. While full-time, salaried employment with a permanent contract had become the norm in the 20th century, the majority (almost 60%) of all employment growth in OECD countries since the 1990s has been in the form of non-standard work. As a result, some 40% of the European workforce is today engaged in ‘non-standard’ forms of work. Younger, female, and migrant workers are most concerned. Non-standard work can take many forms, ranging from self-employment to part-time or temporary work, as well as contractors, freelancers, agency work, and on-demand or ‘zero-hour’ contracts.

While self-employment itself has remained stable at around 15%, more and more jobs are being created at the boundary between independent and dependent employment. In particular, the number of self-employed people on a part-time basis and without employees has grown (Figure 3). This reflects a growing trend by businesses to resort to ‘dependent self-employment’, whereby workers perform services for them –sometimes as much as full-time– but under a services contract rather than an employment contract. This entails a shifting of risk and responsibility to the individual while reducing labor costs for the employer. Non-standard work can offer benefits such as enabling a wider range of workers to enter the job market; facilitating the accommodation of family or personal obligations or activities; or enabling companies to restructure their activities or improve their performance. However, while initially considered a stepping stone towards the regular labor market, there is mounting evidence that suggests people are being trapped in atypical employment contracts. Furthermore, as they are not formally part of an employment relationship, workers on non-standard contracts generally do not benefit from social protection offered under national law, such as minimum wage rates, social security coverage, paid sick or maternity leave, or entitlements to unemployment benefits and pensions. About 54% of self-employed Europeans, for instance, are at risk of exclusion from unemployment benefits, while casual, seasonal, or freelance workers can be formally excluded from benefits such as for sickness or maternity, among others. This exclusion from the social contract also has implications for other aspects of daily life – from the standards of living that work enables for workers and their families, to the relationships forged within community life, and effects on one’s self-esteem and social status.

Figure 3. New world of work driving growth in self-employed, part-time and temporary work

Source: Joint Research Centre (2019), based on Eurostat’s LFS series

At the same time, this industry 4.0 involves the integration and digital interconnectivity of individuals and companies in an increasingly inter-national world of work in which borders are blurred. At the same time replaced by acquisition and demand for hard and soft skills to move in a more virtual than the physical global world as due to the changing nature of it, pandemics, climate change, sustainability....... Numerous tools have made their way in recent years: data analytics, Internet of Things, artificial intelligence, blockchain, 3D printing, robotics, etc., with a direct impact on the skills and knowledge required by workers. Increasing internatio-nal interconnectivity and data availability increase operational efficiency, improve the quality of life and sustainability of cities, and undoubtedly change the way we work, communicate, and live.

Not only will specific knowledge of the different technological applications be needed, but workers and organizations will need to develop the skills to incorporate them, adapting to their daily activity, and make the most of them. The implications of internationalization on employment are complex and uncertain, but it is clear that the talent market today is global. People must compete in this environment. It is an opportunity, and at the same time, a challenge on both sides. In the case of companies, the opportunity to find the talent they need in a much broader market, but also the need to strive to train and retain their workers in the face of growing opportunities globally.

In the case of workers, the opportunities are opening up in many more companies and countries. But they also find international talent competition in their home countries. On the other side, governments and educational institutions face the challenge of promoting educational plans that ensure the future competitiveness of the country. And generate talent able to compete in a global world. At the same time, the need to work in a global environment has led to a change in skills that need to be fostered at the educational level. Aspects such as resilience, adaptability to changing environments, ability to work in multicultural and multidisciplinary contexts, or a good level of languages are vitally important and can, if not adequately fostered, lead to a mismatch in skills that will affect the ability to find employment.

Public policy is beginning to respond to the risks that accompany this new world of work. This includes efforts to better classify employment relations and to widen the coverage of social insurance schemes. In effect, recent EU legislation has aimed for minimum rights for workers on atypical contracts and in nonstandard jobs, such as gig economy workers.

On the other hand, perhaps reflection should also be done from the side of culture and social values that reflect where we are heading in this new world of work. As shown in Figure 3, the percentage of the population found as a temporary or part-time employee is increasing. This indicates that traditional work structures are not responding to a demand for work, much more project-focused. A much more open demand in which we seek to participate in several projects that offer social and personal value.

How can this new workforce paradigm be leveraged to transform it into increased productivity and sustainability at the same time?