Student Loans And The Gig Economy: Challenges And Solutions – Career How much Singapore Gig Economy Platform workers earned in 2021 (Based on Government Statistics) Only $1,500
Whether it is food delivery, ridesharing or courier services, there are various apps and platforms for it. Grab, Gojek, foodpanda, Deliveroo and Lalamove are all examples of apps that we as consumers are familiar with. But behind every food delivery, ride or courier, there is a worker who is not an employee of the company but who works for the platform: a platform worker whose income is directly linked to the number of gigs he does in a day .
Student Loans And The Gig Economy: Challenges And Solutions
In 2021, around 3 out of 10 self-employed people were platform workers, of which around 30,600 were private hire car drivers, 26,300 were taxi drivers and 16,700 were delivery workers.
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To find out how many of these gig economy platform workers, we take a look at the Ministry of Manpower’s Workforce report in Singapore 2021.
According to the MOM report, the median gross monthly income for platform workers was $1,500. Private hire car drivers earned $2,000 and taxi drivers earned $1,200 in 2021, up from $1,700 and $1,000 in 2020. Delivery workers earned $1,800 in 2021, down from $1,900 in 2020.
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While a median income of $1, 500 may seem low, most platform workers (80.6%) engaged in this work by choice.
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A study by the Institute of Policy Studies (IPS) also found that 76% of respondents indicated the flexibility of working hours as a reason for choosing to work as a private hire car driver.
The gig nature of platform work allows these workers to choose their working hours, without needing to seek permission from supervisors. This makes working on a platform possible for workers who have family needs to attend to, health issues, and other irregular demands on their time. For many low-skilled workers, this level of flexibility and autonomy may not be possible from other available work.
In general, more than half of the platform workers are over 50 years old. Almost 80% of them have non-tertiary educational qualifications.
In addition, 92% of platform workers lived in a home owned by themselves or a family member. About 50% live in fully paid housing, with 4-room HDB flats being the most common type of accommodation.
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When put in this perspective of a platform worker in the years before his retirement without pending requests for housing, the median income of $ 1, 500 seems to be adequate and even comfortable. In contrast, a young platform worker looking to buy their first home would find it difficult to get by on the same median income.
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More than half (58%) of regular platform workers indicated challenges in platform work. The nature of the gig economy of rig work has meant that rig workers have little foresight as to when and where their next gig will land. This can create stress about lack of sufficient work (when they do not receive enough gigs) and the uncertainty they find. sufficient work (when they cannot reliably predict how much work and income they can receive).
In addition, platform workers also point to concerns related to health care and retirement. Platform workers are only required to add their MediSave Account as self-employed persons. As platform workers do not currently receive CPF contributions, they do not have the same safety net as employees with CPF contributions.
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As explored in the IPS study, platform work flexibility is a double-edged sword. The gig economy nature of work means that workers can choose the work they accept. However, this comes at a cost as reduction of gigs, cancellations or even the departure of days can affect the comparison of the algorithm which in turn affects the number of gigs assigned and the earnings and incentives.
Platform workers who choose to maximize their income through platform work often work long hours. Between 15% and 20% of the full-timers surveyed said that their overall quality of life had improved since becoming a PHC driver.
The hunt for higher income and incentives can also hinder their ability to find work outside of driving. Platform work experience is often seen as not valuable to a building resume and the more one engages in platform work, the less equipped they feel to transition from platform work. Although platform work can be a good temporary option to earn income, long-term platform work can limit job mobility.
As highlighted in the speech of the Senior Minister of State for Manpower, the government called a Consultative Committee on Platform Workers to review the needs of platform workers. The committee’s initial findings recognized the importance of retirement and housing adequacy for these workers and is also exploring how the framework of the Work Injury Compensation Act (WICA) can be extended to these workers.
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Regardless, it is important to recognize that the platform’s pool of workers is diverse. The nature of the gig economy benefits certain groups of workers at certain points in their careers/lives, especially for those who value and integrate work flexibility into their daily lives. However, it can hinder job mobility and be detrimental to long-term retirement adequacy, especially for younger workers who enter the gig economy early.
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Gig workers get flexibility and independence but little or no job security. Many employers save money by avoiding paying benefits such as health coverage and paid vacation time. Others pay for some benefits to gig workers but outsource the benefits programs and other management tasks to outside agencies.
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The term is borrowed from the music world, where artists book “gigs” which are single or short-term engagements at various venues.
In a gig economy, large numbers of people work in part-time or temporary positions or as independent contractors. The result of a gig economy is cheaper and more efficient services, like Uber or Airbnb, for those willing to use them.
People who do not use technological services such as the Internet may be left behind from the benefits of the gig economy. Cities tend to have the most highly developed services and are the most established in the gig economy.
A wide variety of positions fall into the gig category. Work can range from driving for Uber or food delivery to writing code or freelance articles. Adjunct and part-time professors, for example, are employed on a contract basis as opposed to tenured or permanent professors. Colleges and universities can reduce costs and match professors to their academic needs by hiring more adjunct and part-time professors.
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America is well on its way to establishing a gig economy, and estimates show that as much as a third of the working population is already in some gig capacity by 2021. Experts expect this number of work to increase, since these types of positions facilitate independent contracting work, with many of them not requiring a freelancer to enter an office. Gig workers are much more likely to be part-time workers and work from home.
Employers also have a wider pool of applicants to choose from because they don’t have to hire someone based on their proximity. In addition, computers have developed to the point where they can either take over the workplace that people used to have or allow people to work as efficiently from home as they can in person.
In the modern digital world, it is becoming more and more common for people to work remotely or from home. This trend accelerated during the 2020 COVID-19 pandemic.
Economic reasons also factors in the development of a gig economy. Employers who cannot afford to hire full-time employees to do all the work that needs to be done often hire part-time or temporary employees to handle busier times or specific projects.
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On the employee side of the equation, people often find they need to move or take multiple positions to afford the lifestyle they want. It is also common to change careers many times throughout life, so the gig economy can be seen as a reflection of this happening on a large scale.
In 2020, the gig economy experienced significant increases as gig workers delivered necessities to consumers at home, and those whose jobs had been eliminated returned home.
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