Gig Economy in Serbia and How It Is Impacted by War in Ukraine

Working on digital platforms is a source of income for millions of people in the world. Serbia is still at the very top when it comes to the number of online freelancers compared to the number of citizens. Regardless of the fact that the majority of them mostly earn a lot, they are at the same time facing a large a number of challenges due to the unregulated work status and risky work conditions.

The Public Policy Research Center has analyzed, for the first time, the key characteristics of the Ukrainian platform market, comparing them with the characteristics of other countries of Southeast Europe that the Gigmetar traditionally monitors.

For nearly a decade, Ukraine has boasted one of the largest online gig workforces globally and in Europe.

According to the Oxford Internet Institute, Ukraine had the world’s seventh largest freelancer population.

An assessment by the International Labor Organization (ILO) estimated about 500,000 Ukrainians were registered on online platforms, which accounted for some 3% of the country’s total workforce, ranking the country as one of the top ten fastest growing freelancing countries globally.

– With the war in Ukraine, we are looking at another face of the phenomenon of digital nomads, represented by the forced migration of gig workers from domicile countries to other states. At the same time, the Ukrainian war has shed further light on the significance of dignified work for the globalized labor force and the question of the activities of platforms in the conditions of risk and forced migrations – Branka Andjelkovic, the director of the Public Policy Research Center, said on the “Magazin na Prvom” show on RTS Radio Beograd 1 regarding the most recent survey “Are Global Workers Immune to Global Conflicts?”.

The war in Ukraine has also opened the question of whether, in case the conflicts continue, employers would turn to other markets, whether it could lead to changes in the supply and demand for workers, especially in Southeast Europe.

An inflow of refugees, including platform workers, is recorded in many European countries, Serbia included. That fact opens room for the strengthening of competition and a consequent potential drop of the labor price.

– It is very likely that the current situation will cause changes in the labor market within the Southeast Europe region, but also on the continent itself – Andjelkovic believes.

When it comes to Serbia and the wages, she points out that 60% of the workers are paid an hourly wage which is lower than the average labor price, and the average hourly wage of a Serbian gig worker is still below the pre-pandemic level.

It’s interesting that the global average hourly wage is 28 dollars and that it remains out of reach for most workers in our country.

– In many states in the region including EU states, there’s a freelance business model. It entails that, regardless of their engagement, which is limited and occasional, people get to exercise all the health and social protection rights, as well as pension insurance. However, our Labor Law does not recognize freelancers, unless they pay contributions themselves or pay lump-sum taxes. One part of them does not have enough money, so they consciously decide to remain invisible to the system – Andjelkovic explains.

She reminds that, in the world, Serbia is at the very top when it comes to the number of online freelancers relative to the populace and that they would need to become visible to the legislative system as soon as possible. The benefit would be mutual, RTS reports.

Centar za istraživanje javnih politika

Gigmetar

Public Policy Research Center

International Labor Organization

ILO

Branka Anđelković

working on digital platforms

freelancers

freelance work

labor price