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THE DIGITAL LABOUR MARKET

Opportunities for employment are not evenly distributed, but digital platforms can connect talent with jobs. They open a whole new perspective to be able to create work for unemployed youth through access to the internet.

 

Connecting talent with jobs can be one of the most profitable undertakings for both the employer, the employee and society. Unfortunately, neither talent nor opportunities for employment are distributed evenly or even in a predictable manner. It can be difficult to find the right match between an open position and a jobseeker.

Digital platforms can aid in connecting talent with jobs across geographic and sectorial borders. For the millions of unemployed youths globally, it opens a whole new perspective for seeking and landing jobs. By creating better matches or simply making matches possible, digital platforms can actually cause more positions to get filled. Estimates say that digital talent platforms can increase employment by 72 million full-time-equivalent positions today, and up to 540 million individuals could benefit from online talent platforms by 2025.

IMPACT SOURCING
Matchmaking of business and talent through online talent platforms is just one aspect of a digital labour market. Another avenue is the rising business practice of impact sourcing – bringing jobs to otherwise disadvantaged youth. Offshoring is not a new phenomenon, neither is global talent hunting, but a new way of doing it is emerging where companies hire and train unemployed youth in, for example, Africa to become highly skilled potential remote employees. Companies are starting to seek to create jobs with social impact through intentionally employing people with limited opportunities, often in low-income areas.

Part of impact sourcing is up-skilling. It is a triple-win opportunity where the human capital of a country is strengthened, where business gets a job done and where youth is offered a way out of poverty. A new form of impact sourcing is emerging where recruitment companies engage in significant upskilling of disadvantaged youth whom they then connect with potential employers on the outlook for those particular skills. This approach turns the risk of a wasted generation in Africa into an opportunity to upskill unemployed youth while helping to develop a global talent pipeline for businesses.

IT FARM JOBS
Micro work is yet another avenue for youth to enter the labour market aided by digital tools. Platforms are emerging which break down projects into small tasks to be solved by youths on a smart phone or a computer in exchange for money. Micro work can supplement income for youth in informal employment or agriculture and can lead to new skills and new job opportunities.

Most job opportunities generated by impact sourcing are targeted to urban youth. However, the right infrastructure and training can unleash a huge opportunity for job creation and growth by digitising the rural youth. IT-trained rural populations (even a modest 10 percent) would be a resource, as this skilled labour along with other qualifications can be integrated quickly into newer types of job opportunities, which are opening up, including call centers, backend accounting and legal services. Bringing digital jobs to rural areas can help diversify the economy of agricultural communities and offer youth opportunities close to the family rather than having to migrate to urban areas or aboard in search for employment.

Finally, youth are creating their own digital jobs by building personal brands on digital social platforms. Here a large number of followers or likes can translate into a paycheck and a stronger position from which to negotiate contracts with companies. It is a path to a digital job.

Key Numbers

83

Percent of employers in US & Canada says there is a shortage of software developers.

2.7

Trillion US Dollars value added by online talent platforms by 2025.

200

Billion US Dollars revenue for the outsourcing industry is expected by 2016.

Solutions for this Opportunity

IMPACT SOURCING

Samasource takes outsourced digital work and gives it to people living in poverty in developing countries around the world.
Location: Global See this solution

DIGITAL JOB OPPORTUNITIES

Digital Jobs Africa explores new and innovative digital job opportunities for African youth.
Location: Kenya See this solution

MICROJOBS VIA CELLPHONES

M4JAM is a micro-jobbing platform, giving real value for small, specific tasks.
Location: South Africa See this solution

TURNING YOUTH INTO IT GURUS

Andela transforms the global technology landscape by connecting top employers with untapped talent around the world.
Location: Nigeria See this solution

EVERYONE’S A TOUR GUIDE

Triip.me allows anyone to create a tourism package and sell it to tourists on their website and iPhone app.
Location: Vietnam See this solution

CONNECTING THE WORLD

BlueTown’s Technology provides low-cost access to the internet in rural areas, enabling youth to access the digital labour market.
Location: Global See this solution

TURNING ANYONE INTO A WEB DEVELOPER

In 3-6 months, General Assembly’s Bootcamps promise to make participants highly employable in a lucrative and fast-growing tech industry.
Location: Global See this solution

PHOTO SHOP

500px is a photo community and marketplace for discovering,sharing, buying, and selling inspiring photography.
Location: Global See this solution



SURVEY FINDINGS

TOP OPPORTUNITY IN OTHER ASIA AND SOUTH AMERICA

This year’s second on the opportunity ranking is to use digital technology as a road to job creation for youth. The digital labour market has been assessed by respondents of the global survey to be the best opportunity to address the risk of a wasted generation to unemployment.

A FAVOURITE

The high rating of this opportunity and the opportunity to close the skills gap sends a strong message that opportunities to address the risk of a wasted generation will have great societal benefits.

In the South America and Other Asia regions, this is the most favoured opportunity of them all. In South America, the opportunity could be even greater if the perceived capacity to pursue it was higher. The opportunity is the second runner up in South East Asia & Australia.

BUSINESS WILL ACT

Affected businesses are the most likely to support this opportunity, which can be explained by the fact that it can secure global access to talents. It is the highest rated opportunity among young respondents whereas the older segments of the population are not so enthusiastic. It is the highest ranked opportunity for men below the age of 30 and it is also one of the most favoured opportunities for women.

Across all business sectors represented in the survey, this is the opportunity they are most likely to pursue of all the opportunities in this year’s report. It is also the opportunity that the service and manufacturing sectors are most likely to pursue. All business sectors have also assessed it to be affecting their business area.

For countries in the high HDI category it is the most preferred opportunity with respect to societal benefits and it is among the favorites for the medium HDI countries as well.

NUMBER 2 ON THE OPPORTUNITY RANKING

Digital Labour Market_Ranking

THE ECONOMIC CAPACITY, TECHNOLOGICAL CAPACITY, AND THE POLITICAL WILL POWER TO PURSUE THIS OPPORTUNITY ACROSS NINE REGIONS

Capacity to pursue_Digital Labour Market

BENEFITS AND CAPACITY

Perceived benefits from pursuing this opportunity (x), and capacity to do so (y), World and geographic regions. Scale goes from -10 to +10.
GOR_SocietyCapacity_Digital Labour Market


Learn more about the Global Opportunity Report 2017

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