Online gig work surges in developing nations — World Bank

WASHINGTON, UNITED STATES – The gig economy, comprising online gig work, has surged to encompass 12 percent of the global labor market, with developing nations leading the demand, states a recent World Bank report.

The study, titled “Working Without Borders: The Promise and Peril of Online Gig Work”, reveals that there are 545 online gig work platforms worldwide, connecting workers and clients in 186 countries. Notably, low and middle-income countries contribute significantly, accounting for 40 percent of traffic on gig platforms.

In Sub-Saharan Africa, job postings on the largest digital platform soared by 130 percent. In contrast, North America experienced a modest 14 percent growth rate. Moreover, in poorer countries, 60 percent of firms surveyed reported an upswing in outsourcing to gig workers, while wealthier countries lag behind, with less than half making such claims.

“Online gig work could provide people in low and middle-income countries an additional path out of poverty, helping address youth unemployment and supporting increased labor market participation for women,” said Mamta Murthi, Vice President for Human Development at the World Bank.”

The report also identifies that young people are increasingly drawn to gig work for various reasons, such as income generation, skill acquisition, and the flexibility to juggle work with education or other jobs. However, it cautions about the lack of social protections for gig workers and the persisting gender wage gap.

“Digital platforms can help increase the visibility of informal workers, supporting efforts to expand social protection coverage for all,” said Namita Datta, Lead Author and Program Manager, Solutions for Youth Employment (S4YE), World Bank.

Previously, an Oxford Internet Institute released a report highlighting poor conditions for AI gig workers.