According to the United Nations, the pandemic and resulting unstable economy are pushing unemployment rates up around the world. Over 200 million people are expected to be unemployed in 2022. The worsening economic conditions affect everyone, from businessmen to politicians. But the ones who have it the worst are the unemployed.
The emerging blockchain technology is already affecting unemployment in many positive ways. This effect is only going to get stronger as the adoption of the blockchain in the world grows. Here are the opportunities (and possible drawbacks) that the blockchain creates for unemployment and the unemployed around the globe.
Opportunities the Blockchain Provides
The main benefit that the blockchain provides is efficiency. It allows transactions between strangers to happen over the internet — instantly at almost no cost. It allows contracts (smart contracts) to be executed automatically and repeatedly basically for free, and without expensive middlemen. As economic problems such as unemployment are strongly linked to inefficiencies within the economy, the blockchain can help the overall situation.
For the global economy to recover and unemployment rates to drop, businesses need to start making deals again, earning stable revenue and employing more workers. The blockchain is helping facilitate this process by making business deals easier to execute on the blockchain with the help of smart contracts.
The blockchain also provides huge opportunities for remote work via contracts and payment platforms now available to almost anyone in the world with an internet connection. Remote workers can use their unique skills to work for any company in the world.
There’s also the growing industry of peer-to-peer lending. This is where regular people (not professional investors) lend out their money to small businesses and other regular people. The loan is facilitated with blockchain infrastructure, rather than a financial institution. This is opening up new opportunities for raising funding for businesses.
There are a range of other benefits, including increased supply chain efficiency and transparency, the improved ability to keep safe and open records, and the facilitation of secure data sharing between organizations. There are also many businesses that invest in cryptocurrency – with the extra funds, these companies can employ more people.
Of course, blockchain technology isn’t good news for everyone. There are certain jobs that are becoming obsolete because of the adoption of crypto technology. These include many financial jobs, such as financial brokers and other types of middlemen. Anyone who manually carries out the functions that the blockchain can now do is in danger of soon becoming unemployed if they can’t update their skill set.
What Benefits Blockchain Gives to Unemployed
The cryptocurrency trend is growing stronger than ever, and now there’s an enormous demand for experts with cryptocurrency skills. This demand has grown faster than the supply of such specialists. This means if you have these skills, you’ll be able to find a lucrative job without a problem.
There’s also the opportunity to use peer-to-peer lending to raise money to start your own venture. You can use these accessible funds to start a business or pay for a course to learn valuable crypto skills.
Also, people can learn to trade crypto using only smartphones and access to the internet. Many have already made trading and investing in cryptocurrencies a solid side income, or even a full-time income. Just keep in mind, this is an extremely high-risk activity that doesn’t offer the security of a full-time job. Invest only what you can afford to lose with cryptocurrency.
How the Labor Market Benefits From Blockchain
It’s not just the employees that can benefit. Blockchain technologies are making many tasks in Human Resources (HR) more efficient, too. Here, blockchain can automate info about applicants in their roles, and even verify personal information.
One of the biggest problems in hiring is that you simply don’t know if the info in someone’s resume is true. Blockchain has an innovative solution to the problem. Blockchain resumes are allowing employers to verify someone’s work experience with proof on the blockchain. For example, if you complete a course from a learning institution, this institution may allow you to verify your qualification on the blockchain. Your employer can check this instantly. You can also verify your experience working with different companies, and even on specific projects.
This is good news for the labor market in general. One of the biggest reasons businesses hesitate to hire is because of the risk involved with hiring. It’s hard to know just from a resume and interview if someone is telling the truth. With this problem solved, businesses in the future will hire with more confidence, and hence more frequency.
There’s also the option of paying employees in cryptocurrency. It is a flexible means of payment that implies minimal fees and instant transactions. With a more efficient payment process, the level of trust between the employer and the employee will increase, thus making a positive impact on the market.
What Future Potential Blockchain Has for the Job Market
Blockchain is already having a profound impact on the global labor market. New ways of paying and executing contracts are opening up opportunities for cross-border collaboration and innovation. Many middlemen jobs are being automated with this incredible new technology. But, those with the blockchain skills to help develop and implement this new business layer of the internet are in a prime position to secure the most exciting and lucrative jobs.
Although the blockchain adoption process is long and complex, all parties can benefit from this trend in the short and long term. The efficiency gains are allowing businesses to expand. As they do, more workers will be required, and the rate of unemployment can fall. However, these benefits won’t be equally distributed. Whether you’re an employer or employee, make sure you’re on the right side of this emerging trend to take full advantage.