Highlighting the flaws and inefficiencies of the 9-to-5, the COVID-19 pandemic forever changed the traditional workday. However, it now seems that the 9-to-5 is not just changing, but slowly dying. According to LinkedIn founder, Reid Hoffman, its extinction is much closer than you think.
In a recent video, Hoffman predicts that the 9-to-5 model will be completely extinct by 2034. He believes that gig economy and artificial intelligence (AI) will soon replace traditional full-time jobs.
While not everyone agrees fully with his views, Hoffman has made scarily accurate predictions in the past:
- Predicted social networks would change the world (LinkedIn sold for $26B)
- Saw the sharing economy coming (early Airbnb investor)
- Called the AI revolution years before ChatGPT
Regardless of personal beliefs, Hoffman’s prediction is worth taking a closer look at. Some traditional jobs will continue to stick around, as AI simply cannot replace them. Still, there is no denying that AI is currently changing the future of the workforce. No matter what happens, workers should understand the changing job market and how to adapt to it.
Why The Future Lies In Freelance
While the COVID-19 pandemic is not the sole cause behind today’s changing labor market, it certainly accelerated the shift. COVID restructured where and when people work. It effected wages, increasing pay to attract more employees. And then, it sped up the development of machines and technology that could replace humans in the workplace to reduce labor costs for employers.
Alongside the pandemic and its technological advancements also came a shift in cultural values. Employees realized that greater workplace flexibility improved their work-life balance, and therefore, their overall wellbeing. Together, those factors led to what we are experiencing today; a gig economy “revolution.”
The gig economy, also known as the sharing economy or access economy, is not a new concept. Run by independent contractors and freelancers, it relies heavily on temporary and part-time positions. In the past, gig workers may have looked like jazz musicians or farmers who turned to migrant work. Today, “gigs” may look like tutoring, driving for ride-share services, or delivering food.
Many people worry that AI is not just changing, but stealing, their jobs. In reality, AI is creating hundreds of entirely new careers. Misunderstanding stems from the fact that AI is creating “gigs” rather than traditional 9-to-5 jobs.
Not only is AI creating new jobs, but it is also reinventing the gig economy itself. Technological advancements allow for gig workers with specialized skills to gain global demand rather than strictly local demand. Because specialized skills plus global demand equal premium rates, gig workers will soon earn more than traditional employees.
Specialized Skills + Global Demand = Premium Rates
Keeping that in mind, Hoffman predicts that 50% of the US population will be freelancers within the decade. That will also lead to a micro-business boom; by 2034, 1 in 3 professionals will own multiple micro-businesses. Additionally, many people will not work from physical offices, causing office space costs to plummet by nearly 40%.
Already, 56% of gig economy workers say they take gigs on top of their traditional jobs to earn extra money. Furthermore, 70% of independent contractors today say they are working as contractors by choice.
That means that the future of work will not just be flexible, but fluid. Professionals will play the roles of employee, freelancer, entrepreneur, and investor. For those reasons, the future lies in freelance.
The Gig Economy Revolution
Many people remain validly skeptical of Hoffman’s predictions and of a freelance-focused future. After all, the 9-to-5 is what most have traditionally recognized as the workday norm for centuries.However , as is with anything, there are both benefits and drawbacks to the gig economy.
The main concern regarding the gig economy is a lack of stability. Typically, full-time 9-to-5 jobs come with benefits like insurance, retirement savings and investment plans, and paid time off. Often times, gigs do not provide such benefits.
The gig economy can also make it harder to establish long-term reputations and relationships with clients. Also pointed out has been the lack of incentive for employers to raise wages for gig workers in the past.
However, given that AI and other technology developments are revolutionizing the gig economy, those concerns may become irrelevant. Freelancers will be able to work for themselves and set their own standards. Therefore, they will be able to ensure better earnings and the chance to develop long-term careers and client relationships.
Though not quite demonstrative of a gig economy revolution, other countries have already proven the benefits of shortening the workday. For example, European countries like Germany, Norway, Sweden, and France have already implemented related changes. In such countries, work days and the work week are shorter, and employees receive much more paid time off. They also usually don’t have to take work home or answer calls and emails after hours.
Consequently, workers there report higher levels of happiness, motivation, engagement, and productivity. They also report better work-life balances. Likewise, professionals in the US could achieve similar benefits through the gig economy and micro-business boom via self-employment.
In support of a more flexible work environment, younger workers also already seem to be leaning away from the 9-to-5. In fact, studies found that 60% of Gen Z say 9-to-5 jobs are “soul-sucking.” 43% of Gen Z say they have no desire to work a traditional 9-to-5 at all.
Gen Z’s negative stance towards the traditional labor market stems from multiple discrepancies. Many report they are unsatisfied with their job due to too little pay and too little free-time outside of work. They also said that their jobs negatively impact their mental health and leave them unfulfilled.
Additionally, a quarter of Gen Z discerned that their values do not align with those of their employers. Perhaps that is because young workers are simply ready to embrace the future. They are ready to discard old ways of the past which are no longer suitable or efficient in today’s economy.
Conclusion & Afterthoughts
While the future of the labor market is still unclear, there are some things that are for certain. For one, AI is undoubtedly changing the workforce. Employees would benefit from learning how to utilize AI.
Secondly, the benefits of changing the way we traditionally work have already been proven. Not only have benefits been shown, but they have also been endorsed by employees around the globe. Most workers are ready for reform.
Lastly, the fluctuation and transformation of economy is inevitable, regardless of if people are ready for it or not. That has been demonstrated throughout history. It may also be true that there will not be a total shift towards gig economy. More likely there will remain a mix of both flexible and fixed jobs. But, the fact of the matter is that 9-to-5’s were created by the Industrial Revolution, which is a long-gone era.
Today, much of the work required to be done by humans in the past can now be done by AI. As collectively expressed, most workers want to shy away from draining work hours and unfulfilling jobs. The shift towards gig economy, micro-businesses, and self-employment may just be our golden ticket.
In other words, the soon-to-be “extinction” of the 9-to-5 should not be viewed as a threat. Instead, it should be embraced as a chance to redefine success; a positive revolution. It should be viewed as a future full of new opportunities which, most importantly, will be available to all.
