The freelance industry has grown significantly in size over the past few years. It involves both advantages in the form of a free schedule and disadvantages in the form of the lack of a social package. Employers benefit from using the services of freelancers as it allows them to save money and gives them access to a global workforce. However, data on the earnings of freelancers is very contradictory, and this type of employment does not provide any guarantees or stability.
A Deloitte report found that freelancers earn much less than full-time workers.
Taxi service Uber says the average salary for a New York City taxi driver was nearly $91,000 per year. However, research from Ridester found that Uber drivers earn an average of just $14.73 per hour, including tips.
Even so, the freelance economy continues to grow. Former U.S. Labor Secretary Robert Reich estimated that within a couple of years, 40 percent of the U.S. workforce will consist of freelancers. The Freelancers Union and Upwork came to the same conclusion. These numbers are concerning because freelancers are not considered full-time employees, meaning they are excluded from health insurance and other benefits. They are responsible for their own social security and funding their own retirement.
Freelancers are forced to use Fiverr and Upwork to secure clients and pay. However, the cost of services from these sites is often very high. Additionally, these platforms are more customer-focused than freelancer-centric.
Will Lee, executive director of blockchain platform Blue Whale Foundation, believes the problem lies in the centralization of power on these platforms. Blockchain can bring order to the freelance industry and reduce the commissions paid by freelancers for the services of such platforms. Additionally, workers will be able to receive compensation instantly rather than waiting for a bank transfer.
Blockchain can improve this industry in other ways. For example, Blue Whale gives its employees paid vacation and sick pay via blockchain. CryptoTask offers a blockchain dispute resolution system. The entire industry, of course, will not switch to blockchain, but it can help solve some important social issues.
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