THE QUIET RISE OF THE CREATIVE GIG ECONOMY
The Creative Sector is fast becoming a Gig Economy with damaging medium-and-long-term consequences. There are advantages in rethinking employment strategies.
PUBLIC FUNDING support for creative industries increasingly focuses on two core outcomes: jobs and growth.
In parts of the world where public funding is the norm, notably Europe, there has been a growing emphasis on ‘automatic’ fiscal measures with economic outcomes, at the expense of ‘selective’ support, based on the value of ‘cultural diversity’.
UK Chancellor of the Exchequer Rachel Reeves, for example, introducing the Independent Film Tax Relief in 2024, said the creative sector was crucial part to the economy and that tax relief would bring quick returns on investment:
“By supporting growth in this vibrant sector, we can create jobs and continue to show Britain at its best around the world.”
But the raw numbers hide uncomfortable truths: Growth does not necessarily mean sustainable opportunities for independent companies; and jobs includes a growing number of short-term, insecure freelance roles.
GDP numbers, or questionable calculations of the value of overseas production shooting in a country, can feel abstract to citizens, as politicians are finding to their cost.
The definition of ‘jobs’ exposes the perception problem more starkly still. There is a gulf between short-term ‘gig’ employment and a sustainable career.
It is a trend for the wider economy of most countries but is becoming a particularly acute challenge across the Creative Sector.
THE RETHINKCREATIVE TAKE
◊ It is essential to assess the hidden costs of a Gig Economy.
◊ Businesses may be missing out on diverse talent and fresh ideas.
◊ Sustainable policy needs a wider perspective on Gig Economy costs.
◊ RethinkCreative workshops will help shape employment strategy in an era where AI will challenge norms.
Even In the games industry, which has offered comparatively high levels of full-time employment, there has been a sharp rise in freelancers. In April 2023, less than 4% of the UK games development sector were freelance but that had risen to 13% by May of 2024, according to industry body TIGA.
A long post-Covid slowdown means the trend is likely to continue this trend.
It is not unreasonable to ask whether the shift matters. Freelancers have always played a central role in creative industries. European film, television, games and music industries, for example, have always been split between corporate (mostly US) majors and independent small-and-medium-sized companies in a specialised value chain.
But the changing economy and emerging digital ecosystem is leading to serious change.
For the freelancer, there is little security and evidence is mounting of damaging effects on workers: Marcus Ryder, CEO of the UK Film and TV Charity warned in a 2024 report
“An industry that is so often recognised as a jewel in the UK’s cultural crown rests on a precarious foundation where too many workers are grappling with serious mental health challenges. The latest survey is no exception – and it tells us that 64% are considering leaving.”
In terms of businesses, low retention has serious consequences – deskilling, low morale and inflated prices for what labour is available with big advantages for the streaming majors over independents.
The precarious nature of work also contributes to a lack of social diversity. Independent wealth and access to financial support – trust funds and the Bank of Mum and Dad – are huge advantages in a world with so little security.
For policy makers, there are questions about the sustainability of one of the few growth industries in the post-manufacturing economy. The freelancer issue needs a serious strategic rethink but too often it remains a hidden problem.
Looming ever larger in the jobs picture is the rise of Artificial Intelligence, which is already replacing many jobs in all areas of the creative industries and threatens many more.
Of particular concern to the creative sector should be entry-level jobs. A diverse, original and dynamic sector needs fresh blood. The best creative minds may always thrive but it should be remembered how many of them started in low-level support work.
RethinkCreative can help clients find business advantage in developing freelance strategies. And it has developed workshop approaches to help policy-makers and industry identify need and sustainable strategies.
