A new report from the World Bank, published on September 7, has shed light on the rapid expansion of online gig work, particularly in developing countries. Based on surveys conducted across 17 countries, including Egypt, Argentina, Nigeria, Russia, and China, the report reveals striking trends in the gig economy.
The study estimates that a substantial 435 million people worldwide engage in online gig work. This figure is considerably larger than previously estimated, which had placed the number at 154 million. The demand for such work has shown remarkable growth, with a 41% increase observed between 2016 and the first quarter of 2023.
Online gig work encompasses a wide range of tasks, including image tagging, data entry, website design, and software development. These roles often allow workers to operate from the comfort of their homes, making it a valuable entry point to the labor market, especially for individuals in developing nations where quality job opportunities are limited.
The expansion of online gig work offers both positive and challenging aspects for governments and workers:
Positive Aspects:
- Income Opportunities: Online gig work provides income-generating opportunities, particularly in developing countries, where many individuals are engaged in low-productivity, informal occupations.
- Flexibility: The virtual and often short-term nature of gig work offers flexibility, benefiting marginalized groups such as women, youth, migrants, and people with disabilities.
- Digital Skills Development: Gig work can serve as a pathway for low-skilled workers to acquire essential digital skills, bridging the digital divide and enhancing job prospects.
Challenges:
- Worker Protection: Most gig jobs lack adequate worker protection, offering uncertain income streams and unclear career trajectories. Roughly half of the surveyed gig workers did not have a retirement plan. Depending on local labor regulations, many gig workers are vulnerable to unfair practices, exploitation, and workplace injuries.
- Data Security and Privacy: Online gig work also presents challenges related to data security and privacy, as gig workers often handle sensitive information.
The report underscores the need for governments, businesses, and civil society organizations to collaborate in addressing these challenges and harnessing the potential benefits of the gig economy. This includes implementing policies that provide better worker protection, support income security, and ensure data privacy.
As the gig economy continues to evolve, especially in the context of developing countries, policymakers must strike a balance between encouraging economic opportunities and safeguarding the rights and well-being of gig workers. Bridging the digital skills gap and ensuring fair labor practices are crucial steps in realizing the full potential of online gig work for both workers and economies.