From Fast Company, Vivian Giang discusses a recent report published by the Roosevelt Institute and the Kaufman Foundation on changes to the American economy in the next 25 years. Vivian reports five significant changes. She writes:
Below are five changes to expect from America’s next economy:
1. WORK WILL CONSIST OF MANY “SHORT-TERM” ASSIGNMENTS
It used to be that having a job meant security and success for Americans. Since the recession, the idea that a good job is the centerpiece of the “good economy” was proven wrong, as people realized having a good job doesn’t equate to job security.
By 2040, the job market will consist of part-time assignments, portfolio careers, and entrepreneurialism. Instead of day-in, day-out work consisting of much of the same responsibilities, a “career, then, will be composed of thousands of [short-term] assignments spread out over a lifetime,” says the report.
In other words, workers will work on short-term assignments ranging from several days to multiple years, and will become employees for their own firms. As this becomes the norm, the vast majority of job growth in 2040 will come from small businesses.
2. THERE WILL BE MORE PLATFORMS AIMED AT MITIGATING ECONOMIC RISK
As traditional jobs—with their health insurance, retirement planning, and tax withholdings—disappear, we will see more platforms and institutions develop to help workers and their families manage exigencies and mitigate risks. These platforms will meet needs in three distinct categories, according to the report:
1. Offer new means of marketing and selling goods and services, like Etsy does with handmade crafts.
2. Provide ways for workers to learn about new assignments, to qualify for and schedule assignments, to collect payments, and to meet such needs as health care, insurance, pensions, child care, and elderly care, like Task Rabbit.
3. Offer training and education programs for workers to connect with the larger market.
3. THERE WILL BE MORE TALENT AGENCIES LOOKING FOR THE STANDARD WORKER
In the past, talent agencies were reserved for performing artists and athletes, but in the next economy, talent agencies and headhunting firms will start to play a bigger role in the lives of the everyday professionals looking to further their career. The report says:
There is not a single model or clear linear path along which the platforms of the new economy will evolve, but it is evident that the profoundly different nature of jobs and work in the emerging new economy will require profoundly different platforms for organizing work and careers.
4. SMALL-BUSINESS GROWTH WILL LEAD TO A BOOST IN WAGES
The rise in self-employment will inevitably increase wages (think: you’re no longer suffering under an underpaying employer). Additionally, as the aging population retires and with a birthrate below replacement, the labor supply will decrease, which will also play a role in boosting wages.
While immigration can help meet new labor demands, it’s unlikely to stall wage growth, according to the report.
5. EVERYONE IS RESPONSIBLE FOR THEIR OWN SUCCESS
Sure, you’ll be free from an underpaying employer, but this also means your career success relies solely on you…
Read the full story at 5 Major Ways Freelancers Will Change The Economy By 2040