Automation and the Spread of AI May Be Driving Workers into Self-Employment: New ILO Study
Modern technologies may be pushing certain categories of workers toward unstable self-employment.
Those most at risk include low-paid workers and individuals engaged in low-skilled occupations, according to a report published on the International Labour Organization (ILO) website.
The study, titled “Technological Progress and the Dynamics of Self-Employment: Worker-Level Evidence for Europe”, was conducted by Ronald Bachmann, Head of the “Labour Markets, Education, and Population” Department at the Leibniz Institute for Economic Research, and Santo Milasi, Economist at the Joint Research Centre of the European Commission in Brussels.
The researchers distinguish between two forms of self-employment:
• Solo self-employment, and
• Self-employment through independent business ownership.
Their findings show that individuals whose jobs have already been impacted by artificial intelligence are more likely to become solo self-employed.
However, these same individuals tend to return to traditional employment when such opportunities arise.
In occupational sectors undergoing increased automation, people are less likely to shift into self-employment.
As the authors explain:
“This suggests that technology may create new opportunities for highly skilled workers. For others, it may lead to greater job insecurity and force them to work independently, often with limited support. Many become self-employed not by choice, but because they are unable to find decent, stable employment.”
The authors also warn of a growing risk:
“There is a danger that technology will widen inequality in terms of who benefits from its use.”
To mitigate these potential negative consequences, the researchers recommend action at both government and employer levels.
Key measures include:
• Supporting workers in adapting to new technologies;
• Expanding and modernizing social protection systems;
• Promoting training and reskilling for the use of emerging technologies in professional activity.
They emphasize that new models of social protection must account for self-employment and non-standard forms of work.
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