This blog post is the first of two blog posts where we discuss platform work in Finland. We have discussed fairness in platform work in one previous post. In the following two blog posts, however, we get more into what platform work in Finland is like. Today, we talk about the frequency of this type of work in Finland. In the second one, which we will publish in two weeks, we discuss what those performing platform work think about it.Â
This discussion is based on information recently published by Statistics Finland. They recently examined what type of platform work Finnish residents are engaged in. They were also interested in finding out the number of people for whom income from platform work constitutes a significant share of their income. Another purpose was to discover what people doing platform work actually think about it. For example, whether it is something they want to do as opposed to being compelled to do it for lack of better options.
Statistics Finland did this study as a part of an EU-wide examination of platform work. The purpose of this examination was to provide information for EU legislators. After all, there are significant legal issues related to platform work across the EU. Most importantly, these include the status of platform workers as either entrepreneurs or employees.
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Definition of platform work
What platform work actually is can be hard to define. In this study, the key to the definition is that the platform through which tasks are distributed is itself an active third party in task distribution and performance.
These platforms control, monitor, and evaluate job performance, monetary compensation received for that performance, and the relationship between its clients and those performing the tasks.
So, virtual job boards where employers look for employees would not fit into the definition of platform work. In Finland, this includes job sites such as Duunitori.fi. Neither would occasional sales of one’s leftover stuff on digital flea markets.
Instead, this definition includes work through such platforms as Wolt, Foodora, or Uber. It also includes Airbnb and other short-term rental platforms. The assumption here is that those renting their property short-term also do the required cleaning and maintenance work themselves.
In addition, they included those who sell products they’ve manufactured or repaired through a platform. They recognize, however, that there are differences between such platforms in terms of how much control they wield over the transactions. They also included some recruitment services where recruitment companies rent employees out to companies for short-term assignments. This, however, is typically not considered to be platform work but platform-mediated work.
With these in mind, let’s look at platform work and its frequency in Finland.
Frequency and types of platform work in Finland
According to Statistics Finland then, 3.9 % of 15 to 64-year-old Finnish residents had done platform work in the past 12 months in 2022. This is equivalent to about 134 000 individuals. This number also includes those who had engaged in platform work only once in the previous 12 months.Â
A somewhat larger proportion of these were men (55 %) than women (45 %). Platform work was quite evenly distributed among different age groups except that 55-64 year-olds did not engage in platform work as often as younger people.
Platform work is relatively more common with residents with a foreign background. About 3 % of those with a Finnish background had engaged in platform work in the past 12 months. The share of platform workers among those with a foreign background was 10 %.
Most commonly platform work includes the selling of products the seller has made themselves or has purchased for reselling. 1 % has engaged in this type of platform work. 0.8 % have produced content as platform work and 0.7 % have provided courier labor. Even smaller proportions had engaged in other types of platform work in Finland.
Income through platform work
According to Statistics Finland, 1.2 % of the working-age population had received income from platform work within the past month in 2022. A slightly bigger proportion of these were men (59 %) than women (41 %).Â
There were differences between age groups. Of those who had received income from platform work within the last month, 31 % were 35-44 year-olds, 24 % were 45-54 year-olds, 18 % were 15-24 year-olds, 16 % were 25-34 year-olds, and 11 % were 55-64-year-olds. Â
Of those who had done at least one hour of platform work within the last month, 54 % said they were entrepreneurs. About 25 % were employees. Nearly a quarter of them did not know their status. This means that they did not know whether they were entrepreneurs or employees.
27 % of those who had done at least one hour of platform work within the last month said that platform work was their main form of work. 18 % considered it a significant side hustle. The majority (54 %) of them, however, said that platform work provided them with some supplementary source of income or just occasional income.Â
About 25 % of those who had done at least an hour of platform work within the last month received the majority (75 %) of their income from platform work. To about 9 %, platform work provided about 50 % of their income. 10 % received anywhere from 25 % to 50 % of their income from platform work.
Thus, about 40 % of those who had done at least an hour of platform work within the last month received at least 25 % of their income from platform work. The majority of them (54 %), however, only received less than 25 % of their income from platform work.
The above means that only 0.4 % of the whole working-age population of Finland received more than 25 % of their income from platform work.Â
This survey did not examine income levels received from platform work. So, although a respondent may have received the majority of their income from platform work, it doesn’t necessarily indicate high income levels.
How many hours of platform work do workers do in Finland?
In most cases, the number of hours people do platform work is quite low. 17 % of those who had done platform work within the last month had worked for less than an hour. 35 % had done between 1 and 19 hours of platform work within the last hour.
Only about 5 % had done so much platform work within the last month that it corresponded with a part-time or full-time job. This means 20-40 hours a week. 8 % had done 20-29 hours within the past month, 9 % 30-49 hours, and 3 % 50-79 hours.
Only about 2 % had worked for more than 40 hours a week. So, the overwhelming majority did not spend significant amounts of time on platform work.
In our next blog, we’ll discuss what those performing platform work think about it.Â
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