THE online gig economy can be a means for making the labor market more inclusive for women, the young, and low-skilled workers, especially in developing countries, the World Bank said.
“Online gig work can support inclusion on the supply side by providing work opportunities for youth, women, relatively low-skilled workers, or people in areas with insufficient local jobs while also widening the talent pool for micro, small and medium enterprises (MSMEs) on the demand side. (However), people without internet access could remain excluded,” it said in its latest Working Without Borders report.
Low- and middle-income countries account for 40% of traffic to gig platforms, according to the report. One-fifth of the visitors (18%) come from India, Ukraine, the Philippines, Indonesia, Pakistan, and Nigeria.
“Lower middle-income countries — rather than upper middle-income countries — are the second most important contributors to global online labor demand, collectively accounting for 15.4%, which includes demand generated in India, Pakistan, the Philippines, Nigeria, and Ukraine,” it added.
The World Bank said that the online gig economy constitutes a “growing and non-negligible part of the labor market.” It accounts for 4.4-12.5% of the global labor force.
“Women in most regions are participating in the online gig economy to a greater extent than in the general labor market, in the services sector, or in the informal sector, although a considerable wage gap still exists between men and women,” it said.
The report showed that the share of women in the online gig economy is “much more limited” in countries like India, the Philippines, South Africa, and Tunisia.
It also showed that the majority of online gig workers are under 30 years old that seek to “earn income, learn new skills, or have the flexibility to combine gig work with school or another job.”
The World Bank said that governments should capitalize on the opportunities from the online gig economy.
“Governments can use the promise of the gig economy to build digital skills, increase income-earning opportunities, and engage with platforms to expand social protection coverage of informal workers through carefully designed targeted programs and improved access to digital infrastructure and payment options, while also safeguarding against peril and protecting gig workers through modern forms of collective bargaining,” it said.
It recommended that governments partner with platforms to provide support and training for vulnerable and disadvantaged groups.
“Training programs for gig workers need to include socioemotional skills such as teamwork, empathy, conflict resolution, and relationship management in addition to digital technical skills,” it said.
The World Bank also said that governments should make sure to mitigate risks stemming from gig jobs, such as low wages, employer pressure, and harassment. For example, it recommended extending social protection coverage outside standard employment. — Luisa Maria Jacinta C. Jocson