Online gig work is on the rise globally, particularly in developing countries, providing employment opportunities for women and young people in regions where jobs are scarce.
A recent World Bank report estimates that the number of online gig workers has reached a staggering 435 million people, with demand for such work surging by 41% between 2016 and the first quarter of 2023. However, the rapid growth of this sector has sparked concerns about the lack of adequate job protections for these workers.
A Vital Source of Employment in Developing Countries
In many developing countries, particularly those with limited formal job opportunities, online gig work is becoming a lifeline for marginalized groups such as women and underprivileged youth.
The World Bank report underscores that these individuals often struggle to secure quality jobs due to household responsibilities and economic constraints. Approximately 90% of the workforce in low-income countries operates within the informal sector, emphasizing the importance of gig work as an entry point into the labor market.
Precarious Nature of Gig Work
Despite its potential as a job creator, online gig work is characterized by its precariousness. Workers often lack job security, accountability from management, and essential social protections, including those related to health and retirement.
The report reveals that approximately half of the surveyed gig workers do not have access to a retirement plan, with as many as 73% of Venezuelan gig workers and 75% of Nigerians having no savings for retirement. This raises concerns about the long-term financial well-being of these individuals.
Global Variation in Job Protections
The lack of consistent job protections in the gig economy is a global issue. Even in the United States, where gig work has grown significantly, disputes persist regarding worker rights, minimum wage, and employment classification on gig platforms.
A 2021 Pew Research study found that 16% of U.S. adults have earned income through online gig platforms, with 30% of 18- to 29-year-olds participating. Various lawsuits involving companies like Uber, Lyft, and Grubhub have highlighted the challenges associated with worker classification and employment conditions.
Urgent Action Needed to Safeguard Gig Workers’ Rights
While online gig work offers a valuable source of income and employment for millions, the World Bank report underscores the need for improved job protections and social safety nets for gig workers worldwide.
The precarious nature of these jobs, combined with the lack of consistent labor standards, highlights the importance of addressing these concerns. As the gig economy continues to grow, it becomes increasingly crucial for governments and businesses to prioritize the development of good jobs with basic minimum wage and labor standards, ensuring that workers are not left vulnerable in an evolving employment landscape.
