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Digital Labour Platforms: Transforming Work, Empowering Entrepreneurs Worldwide

Synopsis: The International Labour Organization has been studying the impact of digital labour platforms, including web-based platforms and location-based apps, on workers and employment since 2015. Recent research by the ILO reveals the opportunities and challenges presented by these platforms in developing economies, particularly for women entrepreneurs and freelancers in Kenya and Uganda.
Thursday, June 13, 2024
ILO
Source : ContentFactory

The rise of the gig economy and digital labour platforms has revolutionized the world of work, offering new opportunities for entrepreneurs and freelancers across the globe. These platforms, which include web-based platforms that outsource work to a geographically dispersed crowd and location-based apps that allocate tasks to individuals in specific areas, have become an increasingly important component of the modern economy. The International Labour Organization has been at the forefront of studying the implications of this new form of work organization since 2015, with a focus on understanding its impact on workers and employment in general.

Recent research conducted by the ILO has shed light on the potential of digital labour platforms to empower entrepreneurs and freelancers in developing economies. In Kenya, a study titled "Digital labour platforms in Kenya: Exploring women's opportunities and challenges across various sectors" revealed that these platforms have created new avenues for women to participate in the workforce and generate income. The study highlighted the importance of digital skills training and support in enabling women to leverage the opportunities presented by the digital economy.

Similarly, a rapid assessment of digital skills gaps and the feasibility of microwork employment opportunities in Uganda, published by the ILO in May 2024, underscored the potential of digital labour platforms to create jobs and foster economic growth. The study emphasized the need for targeted interventions to bridge the digital divide and equip workers with the necessary skills to thrive in the platform economy.

The ILO's research has also delved into the impact of digitalization on specific sectors, such as the financial industry. A report titled "Harnessing the potential of digital technologies to achieve decent work in the financial sector: Policies and practices on the impact of digitalization in the sector" explored the ways in which digital technologies are transforming the nature of work in the financial sector and the policies needed to ensure that this transformation benefits workers and promotes decent work.

Despite the opportunities presented by digital labour platforms, the ILO has also recognized the challenges and risks associated with this new form of work organization. Many gig workers face precarious employment conditions, lack access to social protection, and struggle to earn a living wage. The ILO has called for the development of policies and regulations that promote decent work in the platform economy, including measures to ensure fair pay, social protection, and the right to collective bargaining.

To further advance the goal of decent work in the platform economy, the ILO has made this issue the fifth item on the agenda of the 113th Session of the International Labour Conference in 2025. The conference will engage in a standard-setting discussion aimed at developing international labour standards that address the specific challenges faced by workers in the platform economy and promote decent work for all.

As the world of work continues to evolve, the ILO remains committed to understanding the implications of digital labour platforms and promoting policies that harness their potential to create decent work opportunities. Through its research, advocacy, and standard-setting activities, the ILO is working to ensure that the benefits of the platform economy are shared widely and that no one is left behind in the digital transformation of work.