The gig economy in Asia is no longer a side hustle for the residents. The elegance of autonomy and flexibility has overshadowed the security of 9-5 work. According to Visa.com, in their survey, 67% of the Gen Z respondents reported they worked in some kind of Gig work; a similar figure was represented by young millennials, followed by older millennials (64%), and 55% of Gen X respondents were involved in gig work.
Moreover, the growth of the gig economy is marked by the development of ride-hailing platforms, rapid technologisation, the rise of Web 3 and many more. We will discuss all these factors in the coming sections of the blog. Also, we will discuss the dark sides of gig work, which every gig worker needs to know. So, let’s jump in:
The Winners Of the Gig Economy
The gig worker is characterised by freelance and contractual work, which is rapidly expanding in Asia, fuelled by rapid technological advancements, urbanisation, and a growing appetite for flexible work arrangements.
According to Horasis.org, countries like Indonesia, India and China are the major beneficiaries of the Gig Economy. In India, gig work has expanded substantially, with nearly 15 million gig workers serving in delivery, cleaning, consulting and blogging roles. It is believed that by 2030, gig workers will expand to 23.5 million, accounting for about 4.1% of the total workforce.
China’s employment rate in contractual or freelance work is even more wild. According to the report of the same organisation, approximately 200 million workers are engaged in contractual work across industries like e-commerce, online teaching and more. The Gig economy platforms like Didi Chuxing, Meituan Dianping, and Alibaba’s Taobao are the major facilitators of gig work in China.
Barriers To Break
The charm of autonomy is enticing enough to attract the young workforce to engage in contractual or freelance work, but there are some grey areas that you need to know before making freelance your only hustle.
Unlike the traditional workforce, the Gig economy doesn’t provide perks like retirement planning, health insurance or paid leaves. These may not sound much of a big deal now, but the absence of this safety net may make you susceptible to financial instability or bankruptcy in times of emergencies.
Moreover, the plight of women as gig workers is even more daunting. The female gig workers, who contribute to 20% of the workforce, have to face discrimination, unfair pay and even worse, male-centric algorithmic labour controls.
The sophistication of flexibility and autonomy in gig work often comes with endless working hours and burnout. Horasis.org stated that 70% of the gig workers in India are overworked, and their net earnings are insufficient to meet basic household expenses. This leads them to both mental and physical health issues.
Who is Earning In the Gig Economy?
According to Visa.com, 3/5 of the gig economy workers in Asia are paid for the professional work they do for the company, followed by online payments, apps and more. Moreover, the report further mentioned the 5 gig works that are being paid the most:
- Trading and reselling consumer products, including clothing, accessories, electronics, and books.
- Creating content on social media platforms, such as videos, podcasts, blogs, and live streams.
- Offering IT services like web development and software engineering.
- Providing education services, including tutoring, coaching, and online teaching.
- Delivering goods such as food, groceries, and parcels.
The growing branches of the Gig economy indicate the diversity of work and increased awareness of the business founders of the least impact of work performance on flexibility. This is particularly evident in content creation, driven by the growing demand for digital content on social platforms. This, in turn, has increased the need for content creators who monetise their work and receive payments seamlessly through peer-to-peer systems.
However, significant diversity exists in the types of gig work undertaken by respondents across different age groups and regions. For example, Gen Z in the Asia-Pacific region displayed a higher level of involvement in writing, art, and design services than other age groups.
Future Of the Gig Economy
The gig economy in Asia is poised for growth; however, it is not free from challenges. It comes with significant challenges, including income instability, lack of social security, and regulatory gaps. Governments, businesses, and gig platforms must collaborate to address these issues by creating supportive policies, enhancing worker protections, and fostering skill development.
As technology evolves, the gig economy holds immense potential to drive economic growth and innovation in Asia. Striking a balance between opportunity and equity will ensure sustainable growth and a fair future for gig workers.
