People are increasingly time-poor and want to focus on what they enjoy and are good at, while “renting out” the other parts. This growing demand is being met by an increasing supply too.
The Project Economy can, therefore, be defined as a situation whereby individuals focus on their skills, talents and capabilities, in order to carry out freelance work. What is more, a key driver is the desire to adjust “working life” to fit in with “private life” - and not the other way around. This represents a fundamental and seismic shift to the structure of work which has dominated for centuries. This also implies greater efficiency and a set up which should deliver financial and societal value.
Furthermore, the Project Economy can be differentiated from the Gig Economy by the nature of the actual work performed and by the individual doing it. While gig work is a short term transaction, often repetitive (e.g. delivering food or driving a car) with low barriers to entry, Project Economy work takes place over a longer period of time, as well as requires a specific and specialised skillset from the individual involved. It also often delivers substantial value to the business of the end client, resulting in higher remuneration for the individual carrying out the service.
The Project Economy also reflects changes in business operations and society more broadly, whereby work is increasingly done through specific, dedicated projects. This “objectification” means that the demand for labour, and the future of work, is changing accordingly too.