Online Gig Work: A Growing Opportunity for Women and Youth in Developing Countries
A recent report from the World Bank highlights the global growth of online gig work, particularly in developing nations. This emerging trend has become a crucial source of employment for women and young people in countries where job opportunities are scarce. According to the report, the number of online gig workers worldwide is estimated to be as high as 435 million, with a 41% increase in demand for gig work between 2016 and the first quarter of 2023. Despite this growth, there are concerns among worker rights advocates regarding the lack of job security and employment rights in the gig economy.
Online gig assignments offer a range of tasks that can be completed remotely, such as image tagging, data entry, website design, and software development. This flexibility is particularly beneficial for women in developing nations who face constraints and household responsibilities that make it difficult to secure traditional employment. The report emphasizes that approximately 90% of the workforce in low-income countries is in the informal sector.
Worker advocates highlight the precarious nature of gig work, pointing out the absence of job security, healthcare coverage, and retirement benefits. There is a universal need to prioritize the creation of good jobs, regardless of economic conditions or geographical location. Implementing basic labor standards and a minimum wage is crucial to ensure fair treatment for gig workers. However, this report reveals that social insurance coverage is low among gig workers worldwide, with many lacking retirement plans and savings.
Lindsey Cameron, a management professor at the Wharton School of the University of Pennsylvania, acknowledges that while online gigs may not offer social protections, they still provide better employment options for workers in developing nations compared to no job opportunities at all. However, she warns that the current imbalance of power between platform companies and workers is exploitative, with workers having little bargaining power.
Gig work has also become a significant part of the workforce in the United States, raising ongoing debates about worker rights. A 2021 Pew Research study revealed that 16% of U.S. adults have earned money through online gig platforms, with even higher numbers among young adults. Transportation and delivery companies like Uber, Lyft, and Grubhub have faced numerous legal challenges regarding minimum wage violations, employment classification, and allegations of sexual harassment.
The report concludes by emphasizing the need for comprehensive labor protections for gig workers worldwide. It calls for measures to address the misclassification of workers, ensure minimum wage guarantees, and establish social safety nets including unemployment benefits and paid leave. The World Bank report draws on surveys conducted across 17 countries, providing insights into the gig economy’s impact on countries such as Egypt, Argentina, Nigeria, Russia, and China.
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