Labor

Gig Economy

Definition

A labor market characterized by short-term, flexible, freelance, or independent contractor work rather than traditional permanent employment.

Explanation

Platform companies like Uber, DoorDash, Upwork, and Fiverr have expanded the gig economy in developed countries. In developing countries, informal work has always dominated — the formal gig economy is layered on top. The gig economy offers flexibility but typically lacks benefits, job security, and career progression. Regulatory responses vary: the EU is pushing for platform worker protections, while the US remains more laissez-faire.