The rise of gig economy

Many Filipinos have turned to freelancing work as either a full-time job or a ‘side-hustle’ to supplement their livelihood. In a report by Payoneer and GCash, there are currently 1.5 million Filipinos that are engaged in freelancing platforms doing jobs such as content creation and customer service for both local and international clients. According to the same report, freelance earnings are expected to grow as Filipinos face the costs and cuts caused by the pandemic.

According to property consulting firm Colliers Philippines, this indicates the rise in demand for flexible work arrangement, as majority of freelance work can be done within the comforts of their home without any restrictions on dress codes, traditional working hours and commuting. The consulting firm also cited that many young professionals engaged in ‘gig’ jobs have gain financial independence and security due to higher pay rates from their clients and flexibility with their work schedules which provides them better time management.

Despite the gaining popularity of freelancing or gig economy, risks such as job and income security have been noted. To protect the gig workers, the national government has recently approved House Bill 67183 or the Freelance Worker Protection Act. This bill institutionalizes benefits of gig workers such as having night or differential pay, hazard pay, and the requirement of written contracts between the freelancer and client. According to Colliers, this may mean a further growth in the freelance sector and a change in the hiring process of businesses to engage in a more cost-effective strategy and hire more people from this sector, bypassing the overhead costs usually associated with traditional hiring.

The office landscape has considerably changed since the pandemic and continues to change with the rise of the gig economy and the support of the government. Colliers encourages freelancers to consider flexible workspaces as they may see the benefits of taking space in a flexible workspace solution which could provide them improved office infrastructure and better telco reliability. Colliers adds that flexible workspaces can create a community which is conducive to the freelance industry especially since networking and collaboration with other freelancers for potential projects is at their reach. Colliers looks forward to a win-win situation where the freelancing industry is protected by the government through its regulation of the informal sector while at the same time providing new opportunities for the flexible workspace providers that can drive up the demand for the office market.