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With the advent of automation in traditional jobs and the evolving gig economy, we may be moving toward a new normal where self-employment is a traditional route. I wanted to be an inventor, building things that would solve problems in the world, and entrepreneurship helped me be that builder. Self-employment is more than just a dream for many people my age. Automation has made self-employment possible for millions.
Rather than relying on human labor, we have managed to make different processes faster, cheaper and less prone to errors thanks to automation. Good things come at a cost. The pool of good jobs was reduced because of the reduced need for human labor. That is to say, jobs that pay a decent wage and offer benefits that people want.
In the United States, this issue has become divisive, with most people falling into one of two camps. On the other side, there are people who argue that people are just too lazy, picky or entitled to take the jobs. There are people who argue that the jobs are gone and the positions that remain do not pay enough for decent lives.
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There is some truth to both sides. According to the Washington Post, as of September 2021, there were over 8 million unemployed Americans and over 10 million unfilled job openings. At a time when supply chains are hanging on by a thread, the country is grappling with a Pandemic and both individuals and businesses are in need of cash. The jobs are still there, but people are either choosing not to take them or they are under qualified. A simple cost-benefit analysis shows that these jobs are not worth the effort for most Americans. Why? At a time when remote work and gig work is very popular, why not take a low-paying job?
People were moving away from 9-to-5 jobs before Covid-19 was on our radar. It has changed the way that labor is performed, and it has also decreased the need for human labor. Employees can work remotely when you push a virtual button to accomplish a task. Businesses of all sizes were able to allow more and more workers to do their jobs from home because of the push for automation and the effects of the Pandemic.
Millions of Americans have not been so lucky. Retail, construction and the like don't have many viable paths forward. We haven't found a way to automate every job. Businesses in these industries can either try to automate as best they can, thereby eliminating jobs entirely, or entice workers to continue coming in to work as they have always done. The former leaves more people out of work, while the latter leaves workers less satisfied and more exposed.
The strange effect of automation is that it pushes people toward self-employment in more ways than one. Automating processes makes it easier for people to work from home. Non-remote jobs seem less appealing to modern job-seekers.
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What does this have to do with self-employment? At the end of the day, people have to find a way to pay their bills or lose their homes and savings. What is the solution if the jobs aren't there or not? You can create your own job.
Many people overlook that factor when it comes to automation. The term conjures up images of giant assembly lines, corporate initiatives and large-scale operations. Automation works for individuals as well as big businesses, and they can do work on their own. Self-employment is the only real alternative when businesses can't offer what people want.
This isn't just speculation. 15 million Americans were self-employed in 2015, according to the U.S. Bureau of Labor Statistics. In the United States, 10% of workers worked for themselves. Self-employment rates increased to 28% in the year 2019. The number of workers who consider self-employment to be their primary means of income has been disputed by some, but it shows that an additional 1% of the national workforce are opting for self-employment each year.
Many people are choosing self-employment because of the double-edged sword of automation. On the one hand, it makes it harder to find jobs, and on the other hand, it makes it easier to build your own work. It is easier to make your own work when you are Automation doesn't just mean that it is easier to do work.
It is automation that is driving us toward self-employment, despite the debate over stagnant wages and job scarcity. This is a change that has been happening for a long time. Technology and automated tools continue to advance at a fast rate. Going forward, self-employment will likely rise even more quickly.
People want to work from anywhere in the modern world. They want to work for a living wage and have opportunities to grow and advance. When traditional jobs fall short, self-employment gives them the power to do so. How long will it take businesses, supply chains and even governments to adjust to a society in which self-employment is the new normal?
