Blockchain: A Solution to the Broken Data Layer Underlying the Global Job Market

Let’s face it: the job market is completely outdated. That has been the case for a while. Change is finally coming based on three great forces all coming together. These forces – the volatile and disrupted labor market, rising privacy concerns and the rise of blockchain technology – are driving a necessary change in the way individuals define their careers and livelihoods, and how employers and other stakeholders in the labor market make workforce-related decisions. . The possible end result is a once-in-a-generation revolution for the labor market.

A volatile and disrupted labor market

Technological and social changes are driving the megatrends for the future of work. With the global skills gap, talent shortage, polarization in the labor market, rising inequality and the increasing flood of non-standard employment, the labor market remains one of humanity’s greatest challenges for decades to come.

The right to work – the free choice of work – is a fundamental human right. The modern labor market is fragmented, ultra-specialised, filled with all kinds of alternative work arrangements or odd jobs. It becomes an extremely confusing environment to navigate as the growing sense of job insecurity touches the core of identity and social stability. More than ever, we need to accelerate our ability to develop and deploy human capital on a global scale.

Growing concerns about privacy

With the advent of the commercial internet in the 1990s, data collection efforts began to ramp up exponentially to generate mountains of information. The personal data that users give away for free is turned into a precious commodity. Brands were able to do this unabated for a long time and consumers did not voice their concerns. However, that is starting to change. According to the Pew Research Center, 79% of Americans now report being concerned, confused and lacking control over how companies use their personal information. These growing concerns and the cascade of privacy scandals that have come to light in recent years are driving lawmakers toward much stricter privacy laws and enforcement.

The rise of distributed ledger technologies (blockchain)

Blockchain is no longer just about Bitcoin or cryptocurrencies in general. Instead, it can be seen as a disruptive, revolutionary technology that will have a major impact on multiple aspects of our lives. A blockchain is a distributed database or ledger shared between nodes of a computer network operated by a community of independent and unrelated entities, usually incentivized to provide computing resources to the network. The innovation of blockchain is that it guarantees the reliability and security of the data records it stores and instills trust without the need for a centralized controlling entity.

The revolutionary power of such technology can be compared to the revolution unleashed by the Internet. Just as the internet is a means of sharing information, blockchain technologies can be seen as a way to introduce the next level: trust sharing.

Fix the broken data layer that underpins the global job market

The emerging contours of the new world of work are quickly becoming a reality for millions of workers around the world. The opportunities for economic prosperity, social progress and individual development inherent in this new world of work are enormous. However, they are highly dependent on the ability of all relevant stakeholders to implement reforms in education and training systems, labor market policies, business approaches to skills development, work arrangements and existing social contracts.

Hiring people based on what they say about their own skills, identity and educational credentials is terribly inefficient. Self-reported career data is unreliable and non-standardized. Misrepresentation is common. Verifying applicant and employee data requires manual, week-long processes that create unimaginable friction and costs in the job market. The current infrastructure for data exchange in the labor market has more in common with the outdated postal service than with the digital world of this generation.

Clearly, we need a new data-sharing architecture to replace the outdated, fragmented way talent represents their career reputation in the job market through resumes and other self-reported online profiles.

Blockchain technology has the power to overcome these challenges by allowing individuals to own their careers and personal information, rather than relying on LinkedIn and other third-party job boards that ultimately control a person’s data.

The blockchain has the potential to revolutionize the way people navigate their careers and livelihoods and how employers make talent decisions. Ultimately, though still in its infancy, this technology could transform the job market.

Dror Gurevich is the founder and CEO of Velocity Career Labs™ and the Velocity Network Foundation®.