THE Philippine Digital Workforce Competitiveness Bill is now a law! The Digital Labor force Competitiveness Act or Republic Act No. 11927 lapsed into law last July 30. This enables the establishment of the Inter-Agency Council for Development and Competitiveness of Filipino Digital Workforce that will lead the particular promotion, development, and enhancement from the competitiveness of Filipinos in digital technology and innovations.
The particular new legislation also authorizes the government to enter public-private partnerships with industry experts, IT-BPO associations, private companies, and other stakeholders to plan plus implement training, skills advancement, and certification programs for digital careers. It also mandates local government units to formulate local policies that support and promote the growth and development of electronic technology as well as digital professions and innovations in their respective communities.
This regulation augurs well with the already accelerating growth of the gig economy in the Philippines. Before the pandemic within 2019, the particular Philippines was already the fifth-largest supplier of online labor in the world, behind India, Bangladesh, Pakistan, and the particular US, according to the Oxford Internet Institute. Those in the creative and multimedia segment make up the particular largest group, comprising 37. 4% of online Filipino workers, further to the study. The other types of work categories are clerical and data entry, professional services, sales plus marketing assistance, software growth and technology, and writing and translation, which are usually all digital technology enabled.
What is exactly the show economy? In the seminal book The Show Economy: A Critical Introduction published in 2020, authors Jamie Woodcock and Mark Graham defines the gig economy as referring to labor markets that are characterized by independent contracting that happens through, via, and on digital platforms. This includes online freelancing work, delivery work, taxi work, plus microwork — all allowed by electronic technology.
One obvious driver associated with the event economy was the pandemic. In 2020 at the height of COVID-19, organizations shifted in order to digital as commerce, function, and school were conducted remotely. As of February 2022, the internet speed improved by 105. 5% (18. 68 Mbps) and 115. 9% (46. 44 Mbps) for mobile internet and fixed broadband, respectively, in accordance to the particular latest We Are Social report.
But the effect of the particular pandemic has been closure plus slowdown associated with businesses, resulting in the rise of unemployment and also under employment in the particular country. Within October 2020, the Philippine Statistics Authority reported that of the 43. 65 million economically active population 15 years old and over, 3. 81 million were unemployed, which placed the country’s unemployment rate to 8. 7%. Underemployment, on the other hand, had been registered at 14. 4% of the particular total employed persons or 5. 75 million Filipinos.
This is complemented by the young labor force in the country, with a median age of 26 years, that will desire flexibility and increased pay. Millennials and Gen Z workers want to work from home or part-time to enjoy traveling anytime, or even simply just to stay with family. Event economy employees can work in their own pace, their very own time and in their own preferred locations.
All these bode well with regard to the future from the gig economy within the Philippines, considering the country’s two core competencies that cannot be replicated by any country: its people’s natural creativity and natural hospitality. In my previous articles, I argued that because of these two factors, our nation has been the particular top exporter of either workers regarding overseas jobs or talents for business process outsourcing, or work where the Filipino’s innovative talents stand out — photo editing, writing, artwork, etc. plus customer service — and for call center plus virtual assistant work.
The gig economy is ready to take off and will just be bigger in the particular future. Our government, human resource practitioners, and labor groups will have to evaluate and assess their particular role in hastening this growth.
Reynaldo C. Lugtu, Jr. is the founder plus CEO associated with Hungry Workhorse Consulting, the digital and culture transformation consulting firm. He is a fellow in the US-based Institute intended for Digital Transformation. He teaches strategic management within the MBA Program of De La Salle University. The author may be e-mailed at rey. [email protected] com