Newer and smarter technologies will soon replace workers at the center of the workplace. Millions of people will lose their jobs as automated options provide cheaper, faster alternatives. This new automated reality will create more jobs than it destroys, but for workers in the booming gig economy, the question remains: Can gig workers still make a living in a robot’s world?
“If you look at the majority of companies in the opportunity economy, you’ll see that they are using people to improve their technology, rather than the other way around,” says Ryan Napierski, president of Nu Skin Enterprises. “We look at the challenges our micro entrepreneurs face and ask, ‘How can we use technology to help them be more effective?’ instead of looking at how technology can replace them.”
Gig workers in different industries will experience different levels of disruption. Some will need to find new careers, while others will enjoy technological advantages that help them work more effectively.
Industries Primed for Automated Disruption
According to a report from McKinsey published in July, office support positions will take one of the hardest hits from automation, decreasing by 11% by 2030. Other hands-on roles in food service and mechanical work will also see modest declines.
Most jobs won’t disappear, however, but will change to adapt to a new automated reality. Health professionals and their assistants will see some of the most growth at 48% and 30%, respectively. Transportation services positions will experience a slight growth of 3%, which may surprise some, given Uber and Lyft’s public commitment to autonomous vehicle research.
Sites like Fiverr and Upwork, which allow gig workers to connect to paying clients, could soon face automated transformation. As it stands today, companies typically post individual jobs, vet potential freelancers, and start the process over for every new partnership. Automation could improve this process by matching freelancers with better jobs, allowing companies to spend more time working and less time searching.
As automation changes industries that have so far avoided the gig revolution, new opportunities for freelance work will arise. Increasing demand for technical and medical skills could even lead doctors and highly qualified technical leaders to remove themselves from traditional employment in favor of increased flexibility. More sophisticated automation means more opportunities for gig workers of all varieties to explore the markets for their skills.
What Comes Next for Gig Workers
Workers in the gig economy do best when they can adapt quickly to changing environments. People who started out driving for Uber may now deliver food for Postmates. Skilled workers often sell services on the side on Fiverr or Upwork.
Some gig workers take cheap jobs on these sites to discover their talents and passions, then develop new careers from the ground up. Research shows that people who diversify their skills through a second job tend to make more money after switching careers, which suggests that gig work can serve as a stepping stone in career development.
Eventually, increased automation could accelerate the adoption of an unprecedented skills marketplace, but that new marketplace will come with new challenges. Research from Upwork found that 64% of American workers view freelancing as a good option for people who lose their jobs to automation. Freelancers in Upwork’s survey named access to affordable healthcare as their top concern about the lifestyle, so the progress of the healthcare debate could determine whether displaced workers seek new roles in traditional employment or strike out on their own.
Increased Competition in an Uncertain Future
Even as the gig economy grows alongside automation capabilities, questions about the sustainability of freelance life remain.
A new report released by HoneyBook in late July found that 92% of freelancers work during their vacations. Last year, CBS News reported that 56% of all American workers checked in with work while on leave, a substantial increase over the 41% figure from 2016. Gig workers, especially younger people, can’t help but stay on the clock during their downtime. As automation creates a more connected world, they may not have much choice.
More automation within the gig economy will introduce more skilled workers to more opportunities. The best (and highest-paying) jobs will go quickly, and freelancers must stay on their toes to get the best work — even if that means working while on vacation. The gig economy already blurs the line between work time and personal time for its participants. Increased automation will further cloud the issue.
The most prominent challenges of the gig economy, including access to healthcare and uncertain income, will only grow as automation floods the market with new workers and opportunities. Legislation will influence the tides, but businesses’ march of progress won’t slow down to accommodate the slow. If the gig economy looks competitive today, smarter technologies and increased demands on productivity will scale the challenges to new levels in the coming years, impacting both gig workers and the companies that employ them.