From Wage-Earning Employment to Project-based Work

The labor market reports a structural change, as fewer and fewer people are being paid a fixed salary for their work, while at the same time the number of employees earning per project is increasing.

Tuesday, March 23, 2021

Although the trend has been reported globally for several years, the pandemic accelerated this process, as the economic crisis generated by the Covid-19 outbreak destroyed thousands of formal jobs.

It is estimated that in 2020 the value of the market for project-based work in the world increased by 33% in year-on-year terms, a situation that is explained by the increase in the average price charged by professionals working on projects and by the migration of many workers to this type of work.

Although freelancers do not enjoy the social coverage provided by formal jobs, in several cases people prefer to work on a project basis. Research conducted in 2019 showed that one out of two "freelancers" felt more financially secure than with wage-earning jobs. reviews that "... for example, before the Covid-19 outbreak, most workers in the App development field earned an average of $17.22 per hour, while the hourly rate grew to $21.97 during the pandemic.  70% of these freelancers report a better work-life balance as the reason they choose to work on a project basis, while 93% of those with college degrees agree that training in relevant new skills has been vital to their work."

The article adds that "... in developing countries, the number of digital platforms with jobs for freelancers increased 30% in the last year. Moreover, a 2020 Intuit Report states that 80% of companies in the U.S. will significantly increase project-based staffing."

According to Rene Quevedo, author of the publication, employment is in crisis as a result of the abrupt fall in private salaried employment, but it is necessary to promote entrepreneurship and the use of technology to multiply job vacancies.

Check out the "System for monitoring markets and the economic situation in Central American countries", prepared by CentralAmericaData.

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