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.

Martesfinanciero.com 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.



More on this topic

Dominican Republic: Unemployment Goes Down to 5.9

February 2020

During the 4th quarter of 2019 the unemployment rate was 5.9%, which is less than the 6.5% registered in the 3rd quarter of last year.

From a report by the Central Bank of the Dominican Republic:

When analyzing the evolution of employment in the last four quarters, it is observed that the average rate of generation of net new employed persons is 123,935, as a result of averaging the year-on-year flows of generation of employed persons for the quarters January-March (153,000), April-June (136,264), July-September (72,761) and October-December 2019 (133,713).

Unemployment Rate Closes 2019 at 12.4%

February 2020

Between the third and fourth quarters of 2019, the open unemployment rate in Costa Rica rose from 11.4% to 12.4%, partly because of the increase in women's unemployment.

In a year-on-year comparison, the National Institute of Statistics and Censuses (INEC) report states that the national unemployment rate for the fourth quarter of 2019 remains unchanged from the fourth quarter of 2018 at 12.4%.

Costa Rica: Unemployment Remains at 8.7%

August 2018

Results for the second quarter of 2018 did not show significant variations compared to the 8.5% registered in the second quarter of last year.

In this second quarter of 2018 the employed population increased by 80,000 people compared to the second quarter of 2017

Costa Rica: Unemployment Rises to 10.3%

May 2018

The unemployed population with respect to the labor force increased 1.2%, going from 9.1% in the first quarter of 2017, to 10.3% in the first quarter of 2018.

- The employment rate was 51.8%, while in the same period last year it was 54%.

 close (x)

Receive more news about Employment

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Take Back Your Life. Costa Rica $100,000 Income & Residency

Property has Everything – Location, Privacy, Ocean Views, Profitable Coffee, Waterfalls, 20 Segregated and Titled Building Sites, Farm Manager.
Very Profitable, $100,000, Coffee Farm, 70 Acre: 30,000...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Sep 17)
Brent Crude Oil
74.640
Coffee "C"
186.85
Gold
1,752
Silver
22.37