Income Volatility and Job Security in the Gig Economy: A Study of Platform Workers

Abstract

As digital platforms have quickly grown to change global labor markets, they have also created what is now called the gig economy. The gig economy consists of a system of short-term, flexible, task-oriented employment opportunities where an individual performs work by connecting with customers over digital platforms rather than through a traditional long-term employment contract. While gig employment provides flexibility and new income sources to workers; it also sparks discussions around workers’ rights regarding job security, income instability and labour protections. This paper presents research regarding income volatility and job security from June 2019 through March 2023 for platform workers. This research examines secondary data collected from multiple sources, including academic journals, policy documents, and government publications. It analyzes the income generation of gig workers, the conditions under which they work, and the effects of gig employment on the labor force. The analysis of the study indicates that gig workers experience irregular earnings due to the variability in demand for their services, the commission model of the platform they are linked to, and the algorithmic management of their tasks. In addition, most gig workers do not have employment contracts and do not receive any form of social security, which results in low job security. This paper posits that gig work offers many forms of employment, primarily targeting young people and those with only a small amount of skill. However, it leaves those who engage in gig work facing serious economic instability and unpredictable income. Policy changes related to extending social protections and improving labour standards are needed to ensure workplace conditions are equitable in the transition to a digital labour market.