Wednesday, Sep 28, 2022
International Finance
Economy Featured

TES to help South Africa’s gig economy

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The adoption of the gig economy is considered to be a turning point in reducing the unemployment rate and increasing gross domestic product

The Temporary Employment Services (TES) is planned to help the gig economy of South Africa, the media stated. TES has been in use mostly in the First-World economies where organisations have the flexibility to obtain the required skill part-time or a temporary fixed term.

The service is customarily contracted to complete a project, cater for a business project for a fixed duration, render additional staffing because of fluctuations in the volume of work and also cater seasonal work. The adoption of the gig economy within the country is considered to be a turning point in reducing the unemployment rate and increasing South Africa’s gross domestic product (GDP).

By January 2021, the US witnessed a temporary rise in the employment rate by 81,000 jobs which consisted of a total of 83.5 percent of new jobs in just that month. The latest data from South Africa show that the unemployment rate saw an increase of 32.5 percent with 7.2 million citizens without a job. However, to embrace a gig economy in South Africa, organisations do require a regular and constant supply of skilled and unskilled staff with the skill to manage the workforce, a point where TES can provide assistance.

The gig economy refers to a labour market where short-term or freelance work is favoured over permanent employment. Here, a gig implies the task or employment option. From an employee point of view, individuals get to focus more on meaningful tasks while being able to meet personal life commitments and demands.

TES is considered the driving force to achieve this because it houses specialists from various fields and is expected to ensure that the business is maintaining its compliance standards with the necessary legislation.

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