Monday, September 28, 2020

Pakistan Digital Gig Economy Surged 69% Amid COVID19 Pandemic

Pakistan's digital gig economy has surged 69% during the COVID19 pandemic, putting the country among the world's top 4 hottest online freelancer markets, reports  Payoneer, a global payments platform company based in Silicon Valley, in its latest report. Payoneer attributes it to government programs such as Punjab government's e Rozgaar program that has been offering free online courses in digital freelancing. The sudden rush to learn skills online boosted the demand for instructors. The Pakistan government filled this demand by hiring alumni of programs like e Rozgaar who were successfully participating in the gig economy.

Punjab government's e-rozgaar program logo

After a brief dip in January 2020, the demand for freelancers took off in February and increased by double digits each month starting in March until June when it surged 47% at the time the data was compiled by Payoneer for its report.“ Likewise, this response is reflected in the revenue figures where freelancing continued to grow year-on-year but temporarily slowing from 21 per cent growth in March to 16 per cent growth in May,” the report noted. e-Rozgaar’s latest group of graduates earned the highest ever income for a new class of the program--earning over Rs. 25 million in three months during the Covid-19 lockdown. PITB Chairman Azfar Manzoor told Profit magazine that e-Rozgaar was playing a pivotal role in curbing youth unemployment. 

Online Freelance Revenue Surge in Pakistan. Source: Payoneer

“One factor that goes a long way to explain this is that in April, local government authorities took the initiative to rapidly shut down educational institutes as a way to contain the spread of the virus,” the report said, adding that this led to the development of a new online education system and as part of this initiative, government training programs, such as e-Rozgaar, expanded its services throughout the country, offering people a new way to enhance their professional capabilities. “The mission was to help expedite freelancing skills for thousands and enable them to earn a living in the most in-demand fields and ultimately lead to a higher employment rate,” the report highlighted.

A global survey conducted by Payoneer, shows that Pakistani women freelancers are earning $22 an hour, 10% more than the $20 an hour earned by men. While Pakistani male freelancers earnings are at par with global average, Pakistani female earnings are higher than the global average for freelancers. Digital gig economy is not only helping women earn more than men but it is also reducing barriers to women's labor force participation in the country. The survey also concludes that having a university degree does not help you earn more in the growing gig economy. The survey was conducted in 2015.

Freelancers Hourly Rate by Gender. Source: Payoneer


An average Pakistani freelancer working 34 hours a week at $20 an hour earns $34,000 a year, or Rs. 5.7 million a year, a small fortune for a young Pakistani. This is one of the upsides of the online global labor market for skilled young men and women in developing nations like Pakistan. Sometimes freelancing experience leads to tech startups in Pakistan.

Another interesting survey finding is that freelancers with a university degree earn about 10% less on average than those with just the high-school diploma. This indicates that the freelancers skills matter more than the level of formal education.

Average Hourly Rate by Education. Source: Payoneer


Payoneer surveyed 23,000 freelancers worldwide, including emerging markets such as Pakistan, the Philippines and the Ukraine. Survey respondents comprise a random sample of Payoneer’s cross-border payment platform users, providing unique insights into how these globally-enabled freelancers operate, what makes them successful and what rates they command.

Freelancers Average Work Week. Source: Payoneer 

Pakistani freelancers worked about 34 hours a week, a little less than the 36 hours global average. Indian freelancers log 37.4 hours a week and Bangladeshis 35.9 hours weekly. Freelancers from Kenya average the highest amount of hours per week (42.6) with Egypt coming in second (38.5). Professionals working in Morocco and Tunisia work the fewest hours per week, potentially as a high percentage of them are also working at companies as well

Pakistan's digital gig economy growth is the fastest in Asia and fourth fastest in the world, according to digital payments platform Payoneer.

Gig Economy Growth in Q2/2019. Source: Payoneer
United States led gig economy growth of 78% followed by the United Kingdom 59%, Brazil 48%, Pakistan 47% and Ukraine 36%. Asia growth was led by Pakistan followed by Philippines (35%) , India  (29%) and Bangladesh (27%).

The rapid gig economy expansion of 47% in Pakistan  was fueled by several factors including the country's very young population 70% of which is under 30 years of age coupled with improvements in science and technical education and expansion of high-speed broadband access.  Pakistani freelancers under the age of 35 generated 77% of the revenue in second quarter of 2019.

Growth in Freelance Work. Source: Payoneer

Mohsin Muzaffar, head of business development at Payoneer in Pakistan, has said as follows: "Government investment in enhancing digital skills has helped create a skilled freelancer workforce while blanket 4G coverage across Pakistan has given freelancers unprecedented access to
international jobs".

Global Freelance Revenue By Age. Source: Payoneer. 


In Q2/2019, Asia cemented its status as a freelancer hub.  Pakistan, Bangladesh and India, Philippines made it to the  top 10 list, collectively recording 238% increase from Q2/2018.


Online Labor Index. Source: Oxford Internet Institute

Silicon Valley based global payments platform Payoneer has reported that Pakistan's digital gig economy has surged 69% during the COVID19 pandemic, putting the country among the world's top 4 hottest online freelancer markets. A global survey results on freelancing show that Pakistani women freelancers are earning $22 an hour, 10% more than the $20 an hour earned by men. While Pakistani male freelancers earnings are at par with global average, Pakistani female earnings are higher than the global average for freelancers.   The survey also concludes that having a university degree does not help you earn more in growing gig economy. The survey was conducted in 2015. As of 2017, Pakistan freelancers ranked fourth in the world and accounted for 8.5% of the global online workforce, according to Online Labor Index compiled by Oxford Internet Institute. India led with 24% share followed by Bangladesh 16%, US 12%, Pakistan 8.5% and Philippines 6.5%.

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12 comments:

Monis R. said...

This growth is dominated by the covid effect (similar pattern with jobs). I am quite skeptical that this has much to do with the e-rozgaar program, the scale of trained resources is too small.

Riaz Haq said...

Monis: " I am quite skeptical that this has much to do with the e-rozgaar program, the scale of trained resources is too small."

I think the e-rozgaar program training here refers to enrolling and bidding for jobs online, not the basic skills required to deliver results.

Zia I. said...


Monis Rahman:If that is the case then digiskills.pk is a much larger program with better content and wider footprint. Could that be a contributing factor !


https://www.digiskills.pk/

samir sardana said...

ITES is the Future,for Pakistan - for the export market - in the Post COVID world.

1stly,All Pakistanis should learn Chinese and Arabica,at the School level,on a MANDATORY BASIS.AI will make Current Education modes OBSOLETE,crash the cost of education and geometrically expand,the reach of Education.dindooohindoo

Then the Pakistan IT companies,should offer Voice and Data based Outsourcing services,to PRC.

Chinese IT staff,with medium skills,have a C2C of 1500 to 2000 Usd Per month (At the minimum). It is even higher than,Pino IT staff offering Voice based Outsourcing services to EU and USA.

Once there is a critical mass of Chinese reading and writing skills,in Pakistan - there will be a 2 way online education and training channel with PRC,and also,PRC will become a hub for large skilled staff exports,from Pakistan to PRC.

The same technology and Business Model,used for offering Voice and Data based Outsourcing services to PRC - should also be also used for offering the same services,in the GCC,by COLLABORATING with similar companies in North Africa.The Synergy is Labour Cost of North Africa and the IT skills of Pakistan for the GCC market

Riaz Haq said...

The full force of the election results provided something of a gut check for liberals in a state that plays a big role in the Democratic Party and often offers insights into where the rest of the nation might be headed.

“The results in California show the Democrats that you can go too far,” said Bob Shrum, a former Democratic strategist and the director of the Dornsife Center for the Political Future at the University of Southern California. “California is a very liberal state that is now resistant to higher taxes and welcoming to the new gig economy, which is where the industry was created.”


https://www.nytimes.com/2020/11/05/us/california-election-results.html

Riaz Haq said...

The Future
of Jobs
Report
2020
Pakistan

http://www3.weforum.org/docs/WEF_Future_of_Jobs_2020.pdf

Pakistan Working Age Population 82,345,263

Digital skills among active population* WEIGHTED AVERAGE 2019-2020 50.7%

Attainment of basic education 2017 36.4%

Business relevance of basic education* WEIGHTED AVERAGE 2019-2020 45.6%

Attainment of advanced education 2017 8.7%

Business relevance of tertiary education* WEIGHTED AVERAGE 2019-2020 54.9%

Supply of business-relevant skills* WEIGHTED AVERAGE 2019-2020 51.1%

Unempl. rate among workers with adv. educ. 2018 4.5%

Unempl. rate among workers with basic educ. 2018 2.3%

Share of youth not in empl., educ. or training 31.1%

The survey was distributed via an online platform
through three dissemination networks. The primary
distribution route was to the World Economic Forum
partners and constituents in collaboration with
the World Economic Forum Regional and Industry
teams. The survey was further disseminated through
a network of Partner Institutes—local partner
organizations that administered the survey in their
respective economies. Further dissemination through
partner organizations enabled the strengthening of
regional representation by extending the sample to
local companies. As a third dissemination channel,
the New Economy and Society team shared the
survey with the collaborators from the countries in
which the Closing the Skills and Innovation Gap
Accelerators are present (South Africa, UAE, Bahrain,
India, Pakistan). The Accelerator project brings about
tangible change by building a national public-private
collaboration platform to increase employability of
the current workforce and increase work-readiness
and critical skills among the future workforce.

Riaz Haq said...

#Pakistan joins #Saudi-sponsored #MiddleEast Digital Cooperation Organization. The group of 7 nations includes #SaudiArabia , #Bahrain , #UAE, #Egypt , #Jordan and #Kuwait. #DigitalPakistan #DigitalTransformation

https://www.reuters.com/article/jordan-gulf-pakistan-tech/saudi-launches-digital-cooperation-organization-with-middle-east-neighbours-pakistan-idUSD5N2G102C

Saudi Arabia, Pakistan and a group of Middle Eastern countries have launched a new organization to accelerate the growth of the digital economy, a statement from the Saudi communications ministry said on Thursday.

The group, to be known as the Digital Cooperation Organization, also includes Bahrain, Jordan and Kuwait, the statement said.

Riaz Haq said...

Five nations unite to launch the Digital Cooperation Organization to Realize a Digital Future for All
https://www.spa.gov.sa/viewfullstory.php?lang=en&newsid=2161875

Senior government officials from several nations patronized the launch of the Digital Cooperation Organization (DCO) Thursday – a global organization aimed at strengthening cooperation across all innovation driven areas and accelerating growth of the digital economy. The event was attended by H.E. Houlin Zhao ITU Secretary General and H.E Borge Brende, President, World Economic Forum.
Founded by Bahrain, Jordan, Kuwait, Pakistan, and Kingdom of Saudi Arabia, the DCO is driven by a vision to realize a digital future for all by empowering women, youth and entrepreneurs, growing the digital economy, and leapfrogging with innovation.
“We are joining hands together towards a commitment to drive consensus on digital cooperation to make sure that we seize an opportunity for our youth, our women and our entrepreneurs with the ambition to grow our combined digital economy to one trillion dollars in the next 3-5 years,” said H.E. Abdullah Amer Al-Swaha, Saudi Arabia’s Minister of Communications and Information Technology. “Our future prosperity will depend on the digital economy. But it can only reach its full potential if we are able to make governments work together collectively with businesses, and entrepreneurs so they can survive and thrive, expand their depth into current markets and open doors for everyone into new ones.”
The launch of the DCO follows the conclusion of Saudi Arabia’s G20 Presidency to maintain the Kingdom's momentum on accelerating the growth of the digital economy across the region and the globe, as nations everywhere increase their adoption of remote learning, telemedicine and contact-less economic systems to survive and thrive beyond the social and economic impact of COVID-19.
‘’This is a critical step towards ensuring that our digital economies are innovative and future-proof,’’ H.E. Ahmad Hanandeh, Jordan’s Minister of Digital Economy and Entrepreneurship, said. ‘’To create sustainable change, we cannot work in silos; this is a collective and global collaboration. This is where our digital journeys intersect and we can learn from and support one another, which will in turn open doors for our youth and sectors to benefit from these efforts.’’
Based on its digitally-focused charter, the DCO welcomes participation and guidance from the private sector, international organizations, non-government organizations and the academic world.
“The Kingdom of Bahrain is pleased to be part of such a dynamic initiative and a founding member of the Digital Cooperation Organization (DCO). We thank the Kingdom of Saudi Arabia for this initiative and are confident that the DCO will enable members to respond and adapt in an agile and swift manner to the ever-changing digital scene. As we have taken steps at a national level to leverage ICT technologies to enhance government efficiency and processes, the Kingdom of Bahrain also believes that fostering regional and international collaboration is a valuable extension to our national efforts,” H.E. Kamal bin Ahmed Mohammed, Bahrain’s Minister of Transportation and Telecommunications said.
The founding members of the DCO have joined forces to establish the organization motivated by their shared interests concerning the digital economy that can only be realized through collaboration.
“We believe that the DCO will offer Kuwait a great opportunity to further develop its national digital agenda as well as to further progress the global digital agenda,” H.E. Salim Al-Ozainah, Chairman and CEO of Kuwait’s Communication and Information Technology Regulatory Authority, said.
Pakistan’s Foreign Minister, H.E. Makhdoom Shah Mahmood Qureshi added: “Pakistan is privileged to be a founding member of the Digital Cooperation Organization...

Riaz Haq said...

Pakistan joins Saudi-led initiative for digital cooperation

https://www.dawn.com/news/1592638

“Pakistan has joined the Digital Cooperation Organisation (DCO) as a founding member,” the Foreign Office said as Saudi Arabia launched the new organisation at a virtual event. A video statement of Foreign Minister Shah Mehmood Qureshi was also played at the event.

Besides Saudi Arabia and Pakis­tan, other members of the DCO are Bahrain, Egypt, Jordan, Kuwait and the UAE. Mr Qureshi, in his statement, said the creation of the DCO would cater to the growing need of international cooperation and collaboration in the digital domain.

Shah Mahmood Qureshi's Tweet:

"Digital Diplomacy is an integral part of my Public Diplomacy Initiative under #VisionFO: today, i am pleased to announce 🇵🇰 joins multilat Digital Cooperation Organisation as Founding Member, ushering in new era of #digitaldiplomacy w/ long term opp to shape global digital agenda"

https://twitter.com/SMQureshiPTI/status/1331968865786540038?s=20

“DCO would offer a platform to promote the global digital agenda in the scientific, health, educational, commercial, social, agricultural, investment and security spheres,” he said.

The FO’s statement noted that digital diplomacy had been a core component of the foreign minister’s public diplomacy initiative that aimed at bringing innovation and enhancing Pakistan’s digital diplomacy footprint.

“The information revolution presents a unique opportunity to leapfrog the development deficit. Pakistan’s membership of DCO would contribute to the attainment of that objective,” it added.

Riaz Haq said...

UNDP mission to support Pakistan’s digital transformation

https://www.dawn.com/news/1590655

A United Nations Development Programme (UNDP) mission is in Pakistan to support the country’s digital transformation.

Former chairman of National Database and Registration Authority (Nadra) Tariq Malik, who is currently the UNDP’s chief technical adviser on digital governance, is spearheading the mission.

Mr Malik, who is advising member states on digital interventions aimed at improving governance, will initiate official mission from Nov 20, following his two-week quarantine.

He will be meeting officials from UN agencies, development partners and key government officials.


Mr Malik will meet, either virtually or in-person, key individuals and their technical staff.

He is also expected to hold meetings with ministers and secretaries of government departments for the purpose.

He is supposed to discuss digital Pakistan policy with IT ministry, role of digital technology in Covid-19 response with National Health Services Ministry and e-payment system with the governor of State Bank of Pakistan.

He is also likely to discuss gender gap and statistics of registration of vulnerable population with Nadra chairman.

The economic affairs’ division has already sent an official memorandum to all relevant ministries, divisions and departments to schedule their meetings with the UNDP official.

Riaz Haq said...

State of
Global Hiring
Report 2021

https://f.hubspotusercontent30.net/hubfs/19498232/State%20of%20hiring%20report%202021/State%20of%20Hiring%20Report%202021.pdf

Salaries are rising fastest in 
 Mexico (57%), Canada (38%), 
 Pakistan (27%), and Argentina (21%) 
 for jobs in marketing, sales, and product.

India 8%, Philippines 7% & Russia 4%

----------------

Top three countries where people hired through Deel were located:

1.Philippines 2. India 3. Pakistan

---------------

Top 3 roles hired through deel:

1. Software engineer 2. Virtual assistant 3. Custom Support Executive


------

State of Global Hiring
Report 2021


Global hiring has never been more popular
between pandemic-related office closures,
fierce talent competition, and a bevy of online
tools enabling collaboration and reducing
hiring complications. But where is it popular,
and for what roles? What countries are hiring
more than ever, and from where? What’s
happening to wages as demand increases?

Using data pulled from more than 100,000 work contracts from 

over 150 countries, along with 500,000 third-party data points, 

a new report from global hiring and payroll company Deel gives a
breakdown of what’s happening within the global job landscape.
Trends are tracked over six months—from July 2021 through December 2021.

Riaz Haq said...

The Philippines, India and Pakistan are the top three countries in terms of the number of workers being hired in the Asia-Pacific region, said a new report.

https://www.khaleejtimes.com/jobs/uae-jobs-indian-pakistani-filipino-workers-are-most-in-demand-says-new-study


According to Deel’s State of Global Hiring Report released on Tuesday, Australia, Singapore, and India are the top three countries in the Asia-Pacific region where organisations were hiring last year. At the same time, Australia, Hong Kong and India were the fastest-growing countries for hiring new employees in the region.

In the UAE, Indian and Pakistani nationals account for the largest number of people among all expatriate communities. There are around 3.5 million Indian nationals, 1.7 million Pakistanis and 650,000 Filipinos employed in different public and private sectors nationwide.


The Deel study revealed that software engineering, sales and products were in the highest demand roles in Asia-Pacific.

In terms of salaries, Taiwan, Thailand, and South Korea saw the biggest average salary gains across all jobs.

Deel’s State of Global Hiring Report data is based on over 260,000 contracts and 15,000-plus customers across more than 160 countries, as well as over 500,000 data points from third-party sources, including Microverse. All countries, states, and cities in the report have at least 50 worker contracts on file as of December 2022.

Globally, hiring sustained its momentum throughout the year, as 89 per cent of all contracts were for remote roles. Many companies looked abroad to optimise talent costs.

Professor Samuel Dahan, chairman of Deel Lab for Global Employment, said average starting salaries for the role in content creation, operations and fiancé increased the most in the Philippines, India and Brazil.

While compensation rates also fell worldwide for new workers for the roles of accountants, customer support agents, consultants, designers and software engineers

Due to instability in the cryptocurrencies, Deel said, workers, lost some interest in receiving payments in cryptocurrencies.