Call it a generational thing. Or call of the times.
Whatever it is, the gig economy is growing three times faster than the traditional workforce, and Gen Zs are leading the charge, according to a recent article on Forbes.com.
The gig economy is not just a trend. In fact, it has become a new way of life, the new normal. Gig work has become the go-to option for those who want to earn income without sacrificing flexibility.
Gig economy jobs are found in diverse industries, including accounting and finance, administration, art and design, construction, education, freelance writing, information technology, media and communications, project management, software development and transportation (ride-hailing and delivery drivers), according to an article by tech target.com.
The Forbes.com article cited a report from Ogilvy Consulting which noted that joining the gig economy used to be considered as an alternative career path but is now fast becoming the norm so that by 2027, half of the developed world’s workers will be part of the gig economy. It said that while it was initially a combination of advancements in technology and corporate cost cutting that drove workers to freelance and side-hustle jobs, the motivation for independent work has evolved.
Reid Litman, global consulting director at Ogilvy, explained that young people are really driven to take control over their own work-life balance and craft their own career and narrative and that they don’t trust the old system.
The article pointed out that members of Gen Z have come of age in an era marked by uncertainty and turbulence, from pandemics to political unrest to mass layoffs in various sectors. They believe that traditional education is not even a guarantee of a stable career that it once was, with employers finding entry-level candidates lacking the necessary skills to begin their ascent on the corporate ladder.
According to Litman, a critical subset of the growing gig economy is the community of creators, influencers, independent entrepreneurs and consultants, a category that includes anyone who publicizes or monetizes their own persona or skill set. Content creation, once seen as a frivolous hobby, has become more and more lucrative, and the creator economy is set to reach $529 billion by 2030 based on a report from Coherent Market Insights.
The Gig Life PH study conducted by leading market research company Ipsos noted that the gig economy is rapidly evolving across Southeast Asia and that digital platforms have reshaped the landscape of work and the nature of gig work – offering flexible working conditions and autonomy while facilitating financial resilience.
It noted that the gig economy has experienced significant growth in recent years, driven by the expansion of technology-based businesses and the rise of flexible work arrangements and with the pandemic playing a pivotal role in accelerating the shift to flexible work.
It cited data from the Philippine Statistics Authority which showed that around 9.9 million Filipinos are engaged in gig work, representing about 22 percent of the total employed population of 44 million. Among these workers, 17 percent or 1.7 million are employed through online platforms or mobile applications, primarily in the ride-hailing, food delivery and courier service sectors. Sixty-four percent of gig workers are male while 18 percent of the 1,500 gig workers surveyed are 24 years and below and 15 percent are 45 years old and above. The bulk of 37 percent are between 25 and 24. Around 59 percent are high school graduates while 34 percent are college graduates.
Many full-time gig workers, particularly those in location-based roles, report spending 40 hours a week on their gigs.
Flexibility is the biggest driver of the growth of gig work, with 47 percent highlighting the ability to choose their working hours and 35 percent appreciating the freedom to work from different locations.
Gig earnings are also viable. About 55 percent of those surveyed earn between P15,001 and P50,000 a month which is above Metro Manila’s minimum wage of P13,545.
Around 83 percent of the respondents report high satisfaction level with gig work, appreciating the autonomy and additional income that it provides.
The same survey revealed that 61 percent of the respondents engage in gig work part-time to supplement their primary income from full-time jobs or business ventures while the remaining 39 percent are full-time gig workers.
The Ipsos study also revealed a shift in how Filipinos view gig work. Six out of 10 believe that gig work is a strategic choice and a viable long-term career option and not just a stopgap. Its flexibility allows them to pursue it alongside their full-time jobs or business ventures. Around 78 percent remain satisfied with the flexibility and earning potential gig work offers.
But despite all the benefits, it is not without its challenges as gig workers face income fluctuations although many stay upbeat while seeking pay that matches their hustle.
The study noted a desire for flexibility alongside critical social protections, fair compensation and sustainable career paths. While wanting freedom at work, gig workers also want a safety net with retirement, savings and health care perks.
It recommended that policymakers examine the earnings structures for gig workers to ensure that they are fair and transparent and in line with market compensation rates for work done.
While gig work offers flexibility, it often lacks structured social protection. It called on the government to take the lead in exploring and rolling out possible benefit schemes for gig workers, possibly collaborating with gig platforms on how to best support these workers in managing their social protection plans, including in the areas of retirement and health care.
It also called on gig platforms to partner with institutions like the Department of Information and Communications Technology and TESDA in developing the workers skills, improving service quality, and in career progression and on leveraging data to understand the workers’ needs.
With DICT as the leading agency and driving force in shaping, innovating and advancing the Philippines’ gig economy, the goal should be to strengthen the social safety net for gig workers while preserving the independence that makes gig work attractive in the first place.
The study added that while challenges remain, there are significant opportunities for government and platforms to further support gig workers, whether through enhanced income opportunities, better access to social protection or initiatives that promote career growth, safety and overall well-being, in order to ensure that the gig economy continues to thrive and uplift its workforce.