If you can’t fire people, you won’t hire them

By Eamonn Ryan, editor of The Master Plumber

There have been many predictions as to how the Covid-19 pandemic will change business life in the future. These include more people working from home, and consequently less demand for commercial office space and less demand for cars. Another prediction is the increase in the gig economy.  

Often called temporary employment services (TES), the gig economy suits businesses looking for the flexibility to procure required skills on a part-time or temporary basis. There is evidence the job recovery globally since the mass retrenchments of the global lockdown is coming primarily from the gig economy.

For instance, in January 2021 the US saw temporary employment rise by 81 000 jobs – or 83,5% of all new jobs created in that one month. Unions don’t like TES - as such jobs come with few labour rights – but it does allow companies to hone in on skilled staff with the ability to manage the workforce, and allows people to earn an income.

These services are typically contracted:

·        in order to complete a project

·        cater for a business project of fixed duration

·        provide additional staffing to meet fluctuations in the volume of work

·        cater for seasonal work

Employers are reluctant to employ fulltime staff who become difficult to let go of as business conditions vary. A gig economy on the other hand provides the opportunity for individuals to earn an income – and even construct a career - when permanent jobs are scarce. Flexibility in employment is one of the reasons the US has almost full employment most of the time.

It has other benefits, allowing individuals to:

·        can gain vital job experience that can be used in future jobs

·        develop new skills

·        become multi-skilled, making them more ‘attractive’ in the job

The gig economy could facilitate a jobs recovery in South Africa following the Covid-19 lockdowns.