EMERGENT EMPLOYMENT: CANADIAN FINDINGS ON THE FUTURE OF WORK Research by The Information and Communications Technology Council This project is funded in part by the Government of Canada’s Sectoral Initiatives Program. Preface: Abstract: The Information and Communications Technology Working patterns, relationships, and norms are Council (ICTC) is a not-for-profit, national centre changing. Recently, gig work and remote work of expertise for strengthening Canada’s digital have been at the heart of these changes, yet their advantage in a global economy. Through trusted implications for the world of work remain uncertain. research, practical policy advice, and creative This report investigates these two phenomena capacity-building programs, ICTC fosters globally and their roles in the future of work (particularly in competitive Canadian industries enabled by the Canadian context) using a review of existing innovative and diverse digital talent. In partnership data and literature, web scraping of job postings, with an expansive network of industry leaders, interviews with 19 subject matter experts, and a academic partners, and policy makers from across survey of 1507 individuals—two-thirds of whom Canada, ICTC has empowered a robust and were remote or gig workers. Combined, these inclusive digital economy for over 25 years. methods outline key characteristics and challenges of evolving forms of work in Canada, how they have To cite this report: been influenced by the COVID-19 pandemic, and what might be expected for gig and remote work Leblanc, S., Mary, E., O’Neill, K., Quan, T. July 2021. in the coming years. Namely, the report highlights Emergent Employment: Canadian Findings on the how demand for flexibility has influenced gig and Future of Work. Information and Communications remote work, how technological development is Technology Council (ICTC). Ottawa, Canada. only one factor driving changes to work, and how Researched and written by Trevor Quan (Senior precarity and inequality are likely to be significant Research & Policy Analyst), Khiran O’Neill challenges for the future of work. Finally, a set of (Research & Policy Analyst), Emerick Mary (Junior recommendations are provided to navigate gig and Research Analyst), and Sylvie Leblanc (Junior remote work in future years. Research Coordinator) with generous support from Alexandra Cutean (Senior Director, Research Key Words: and Policy), Mairead Matthews (Research & Policy future of work, remote work, gig work, gig Analyst), Arun Sharvirala (Data Analyst), and the economy, COVID-19, labour, technology, flexibility ICTC Research & Policy team. The opinions and interpretations in this publication are those of the authors and do not necessarily reflect those of the Government of Canada. ACKNOWLEDGEMENTS The contributions made to this report by our key informant interviewees and advisory committee are greatly appreciated. We would like to acknowledge all the contributors to this report, along with the following specific individuals: Aidan Manktelow Paul Glavin Project Lead, Future of Work, Associate Professor of Sociology, World Economic Forum McMaster University Bama Athreya Dr. Rémi Quirion Economic Inequality Fellow, Chief Scientist of Quebec, Ministry of Economy, Open Society Foundations Science and Innovation of the Government of Quebec Carl Benedikt Frey Oxford Martin School, University of Oxford Robin Shaban Senior Economist and Co-Founder, Vivic Research Emily Norgang Senior Researcher, Canadian Labour Congress Simon Chan VP, Talent, Academy & Future of Work, Gorick Ng Communitech Harvard career adviser and author of The Unspoken Rules Srujana Katta Researcher, Fairwork Project, University of Oxford Joel Blit Associate Professor of Economics, University Stefan Palios of Waterloo, and Senior Fellow at the Centre for Entrepreneur International Governance Innovation Stephanie Hollingshead Kai-Hsin Hung CEO, HR Tech Group Ph.D. Candidate, HEC Montréal Valerio De Stefano Matthew Spoke Assistant Professor, Institute for Labour Law, CEO and Founder, Moves KU Leuven Mimi Nguyen Mimi Nguyen, Project & Operations Manager at Bảo Vệ Collective TABLE OF CONTENTS GLOSSARY 2 Remote Work in 2021 and Beyond ............ 32 EXECUTIVE SUMMARY 3 SECTION II: PLATFORM WORK AND THE GIG ECONOMY 33 INTRODUCTION 6 Overview: Recent Developments in Gig Work .. 34 SECTION I: REMOTE WORK 7 COVID-19 and the Global Gig Economy . 34 Background and Recent Developments ....... .8 The Canadian Context . 35 The Canadian Context . .8 Attitudes About Gig Work ................... .37 A Game of Trade-Offs . .9 Workers and the Gig Economy ............... 40 Remote Work: What it Means for Workers .... .12 Diversity Among Gig Workers . 40 Flexibility and Work-Life Balance: Cornerstones of Remote Work Pre-Pandemic. 12 COVID-19, Health, and Productivity. 41 Mixed Reviews of Remote Work . 13 Labour and Industrial Relations . 42 More Productive Work, or Just More Hours? . .15 Income, and Gig Work as Non-Standard . 43 Employee Health and Safety . .16 The Role of Gig Platforms ................... 44 Home Offices, Housing, and Geographic Impacts Regulating the Gig Economy: A Policy Vacuum .. .46 of Remote Work . 16 Tracking and Taxing Gig Work . 46 Skills for the Future of Work . 18 Social Security and Benefits . 47. Remote Work: What it Means for Employers .. 20 Worker Classification and Platform Regulation . 49 Remote Work By Industry And Role . .21 The Future of Gig Work ...................... 50 Managing the Remote Transition . 22 SECTION III: PREPARING FOR Disrupted Organizational Culture and Natural A DYNAMIC WORLD OF WORK 51 Collisions: Downsides of Remote Work . 23 Conclusion ................................. 54 Tools for Remote Work . 24 APPENDICES 56 Will Innovation Suffer? . 25 I. Research Methodology .................... 56 The Future is Hybrid . 2. 7 II. Limitations of Research ................... 57 Remote Work: The Role of the Government ... 29 How Broadband Infrastructure Influences Remote Work . 29 Taxing Remote Work. 30 Emergent Employment: Canadian Findings on the Future of Work 1 GLOSSARY This glossary presents an overview of terminology Independent Contractor: In contrast to a used but not fully expanded upon in the text. “traditional employee,” an independent contractor is not employed in the name of a particular Freelancer: Typically denotes an independently organization; independent workers are a employed professional, often in a creative or heterogeneous mix of consultants, freelancers, gig technical field. In contrast to “gig employees,” workers, and contract employees. Independent freelancers typically work on longer contracts and contractors are one type of self-employed worker. are more likely to be independently managed. Permanent Employee: Full and part-time Future of Work: A catch-all term evoking the employees of an organization who work for that transformation of the labour market as a function organization indefinitely, provided they fulfill their of technological and social trends. It often refers to performance obligations. To terminate such an continuing developments in the nature of work and employee, employers often have to demonstrate employment. that the employee has failed to deliver on their Gig Economy: Used in the 21st century context, a obligations of performance or be given severance proliferation of the “informal paid work” enabled by pay. online platforms and spurred by rapidly evolving Remote Work: A working style whereby economic conditions. This is often contrasted to employees use remote technologies and highly structured, formal work arrangements. telecommunications to work outside of the Gig Platform: Sometimes referred to as digital traditional office setting. This decentralized working platform companies or gig apps, digital platforms style allows for more flexible work schedules. facilitate interaction and relationship building Self-Employment: All forms of employment in (for some dating applications, such as Tinder, the which a person pays one’s own wages and is not relationship is itself the value), but most platforms technically an employee of another organization. match providers of services with potential buyers This could encompass a range of situations such (such as Uber or Airbnb). as sole proprietorship, consulting, freelancing or Gig Worker: All workers, regardless of sector, gig work. that work on short-term contracts. A gig worker can either be independent, such as a musician or freelancer, or can work as an independent contractor for a gig or sharing economy platform (such as Uber), though the latter is becoming increasingly common. Hybrid Office: A work arrangement in which employees may work both at an office and remotely. Emergent Employment: Canadian Findings on the Future of Work 2 EXECUTIVE SUMMARY The “future of work” has transformed from a series because their job requires it. Expert interviewees of relatively hypothetical debates about the impact noted employers will be more likely to succeed in of digital transformation on work into very concrete transitioning to remote work if they can maintain and immediately relevant issues. There are two company culture, effectively use remote work reasons for this. First, a slow and steady collection tools, and foster innovation remotely. Government of changes have gained momentum, including considerations for remote work, meanwhile, may expanding digitalization, precarity, flexibility, short entail the development of infrastructure and term and task-based work, weakened unions, and employment