Economy

Project Economy report shows 'gig' economy is no longer a dirty word – Phys.org

Published

3 years ago

April 11, 2022

Project Economy report shows 'gig' economy is no longer a dirty word — Credit: Trinity College Dublin

Ireland’s Project Economy 2022, an annual report by Trinity Business School and Contracting PLUS, revealed fascinating results about the country’s project economy and the high-skilled independent professional contractors.

The report showcases the real reason Ireland has so many multinationals, as it has now proven using freelancers increases net employment. It also reveals why the gig economy is no longer a “dirty” word, as variation of workers are needed to create positive working environments. A whopping 76% of freelancers choose to work this way.

This one-of-a-kind annual Irish report shows there has never been a better time to be self-employed, with most highly-skilled contractors better paid and happier than employees. The research has shown the use of freelancers increases net employment which in turn generates more tax for the exchequer.

Variously known as professional contractors, freelancers, and solo self-employed workers, these workers earn more than one and a half times the earnings of equivalent employees.

The report provides a statistical insight into work, life, business performance and the economy relating to high skilled independent contractors. Prior to the report, very little was known about this sector in Ireland despite it being identified as of major importance in other developed economies.

Some notable findings from the report include:

High-skilled independent contractors earn more than equivalent employees and those working in the project economy earn 73% more than similar occupation employees. Female independent contractors achieve and average of €519 per day and male contractors secure an average of €579 per day.
High skilled independent contractors working in the gig economy earn an average of 56% more than equivalent occupation employees.
There is no evidence of age discrimination in the report. The greater experience of older workers is reflected in higher day rates being secured as workers get older. These independent contractors have higher income and are able to command the highest levels of earnings in their 60s.
The report also found that there is greater equality of pay between men and women in the high skilled independent contractor workforce than amongst employees. The average annual earnings gender pay gap is 15% within the professional contractor workforce, compared to the 25% gender pay gap in the employed sector.
The survey also reveals that independent contractors are upbeat about business prospects for the medium term with positive freelance sector and Irish economy confidence indices scores. A total of 73% of contractors expect their sector to perform better over the next 3–5 years than currently. Just 6% expect it to perform less well. In terms of the Irish economy, 76% of independent contractors expect it to perform better in 2022 than 2021. Just 7% expect it to perform worse.
High skilled independent contractors tend to be happier than employees. They manifest higher levels of work and life satisfaction levels than equivalent employees. A total of 76% of contractors voluntarily chose this form of work.

Professor Andrew Burke, dean and chair of business studies, Trinity Business School, said: “The project economy is a major driver of economic growth utilizing a blended workforce of both employees and independent contractors to enable organizations of all sizes to be more innovative, agile and grow faster than they could if constrained to an ‘employee-only’ workforce model. The dual talent and financial advantage of engaging freelancers to work with employees to cover the more complex challenges of innovating, adopting new technologies as well as managing the cost and risks associated with business growth and unexpected events, are defining drivers of the project economy. These performance benefits extend across organizations of all sizes and encapsulate both for and not-for profit entities.”

Jimmy Sheehan, managing director of contracting, PLUS, said: “There has never been a better time to be a self-employed professional! This isn’t my opinion, rather the overwhelming result from this year’s survey. However, the elephant in the room remains the regulations around the use of and hiring of self-employed independent professionals. When the effects of COVID 19 are stripped out of this year’s research, the largest negative factor affecting Ireland’s Project Economy is Government regulation around the hiring of Independent Professionals. The issue is the interpretation of the regulations due to mixed messaging from different Government departments. For now though, let’s celebrate the confident outlook for contracting in Ireland and all the positive aspects that have come out of this research including a smaller gender pay-gap than the national average, the ability for those over 60 to keep working at a time in their life when they are often less valued and the fact that a whopping 86% are satisfied with the success they have achieved in their career.”

Dr. Na Fu, associate professor of human resource management at Trinity Business School said: “Home working due to the COVID pandemic has brought remote and freelance working more into the public consciousness. However, these forms of work in the project economy have in fact been active and growing over the last two decades and are an area of great interest to researchers in universities. Remarkably, high skilled independent contractors that are one of the key defining ingredients of the project economy rarely get the credit for their accomplishments. Maybe a mainly good news story is perceived as humdrum and research showing that high skilled independent contractors are typically better paid and happier than equivalent employees does not generate enough digital clicks. However, while it is a good news story, it is still a form of self-employment, which is fundamentally a more risky career than employment. So it’s not suitable for people who are highly risk-averse nor is entry into this form of self-employment a guarantee to achieve the average incomes unearthed by our research.”

This report showcased that this segment of the workforce allows the project economy to generate value added to business and society. These attributes also entail reduced gender discrimination and clear evidence of valuing the greater work experience of older people. Given these positive characteristics, this segment of the self-employed workforce and economic activity ought to be nurtured and recognized because of its distinctiveness.

The research is based on an anonymous survey of contractors, recruiters and clients and received 1,020 responses. A detailed analysis of the data was then carried out to identify a general profile, nature of work, experience with contract work and expectations about the future of business and economic performance.

The Trinity report on Ireland’s Project Economy is produced on an annual basis, for longitudinal tracking of the nature, contribution and confidence of the sector. Contracting PLUS is Ireland’s largest provider of accounting services and umbrella companies to high-skilled independent contractors.

The study was carried out in February 2022, using an anonymous online survey.

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‘Little improvement for UK gig economy workers’ since major report highlighted their plight

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Economy

Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

Published

1 day ago

November 8, 2024

Anne Joseph

OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

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Economy

Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

Published

3 days ago

November 6, 2024

Anne Joseph

The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

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Economy

Trump’s victory sparks concerns over ripple effect on Canadian economy

Published

3 days ago

November 6, 2024

Anne Joseph

As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

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