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How the gig economy is changing our relationship to work

As technology evolves and advances so to do our relationships to each other, work, and life. Nowadays there are apps for almost anything including food, love, wellness and transport.

It’s also changing our relationship to work as new apps give rise to multisided platform business models like Uber and Airbnb in the gig economy.

While data collection sites like the Australian Bureau of Statistics are updating their collection methods in order to better capture those working in the gig economy – they have managed to capture some statistics on what they call ‘digital platform workers’.

In 2023-24, 1.2% of employed people had undertaken digital platform work in the last 12 months – wth the most common tasks delivering food and other goods and providing personal transport. Of these:

71% were male
68% did not consider digital platform work to be their main job
48% had been undertaking digital platform work for less than one year
43% preferred wage-based employment to digital platform work

The Australian government is also struggling to keep up with this evolving workforce, with new legislation coming into effect February last year (2024) to provide greater rights to the vulnerable workforce.

A part of the federal government’s Closing Loopholes legislation introduced new powers for the Fair Work Commission to set minimum standards for gig economy workers, including rideshare and food delivery drivers.

The legislation deems that gig economy workers can now be considered “employee-like”, providing them with protections they lacked before. This includes access to the Fair Work Commission for orders for minimum standards, including on pay, penalty rates, superannuation, payment terms, record-keeping, insurance and deactivation (when workers are removed from the app for low scores).

Along with changing laws, the gig economy is fundamentally reshaping how we think about work, careers, and financial stability. Here are some of the key ways in which it’s changing our relationship to work:

Flexibility Over Stability

  • Traditional full-time employment emphasises stability, benefits, and long-term growth within a single company. The gig economy, however, offers workers more flexibility in choosing their work hours, clients, and projects.
  • This shift allows people to balance work with personal commitments, side hustles, or passion projects but often comes at the cost of job security and consistent income.

Work as a Series of Transactions

  • Many gig workers see jobs as short-term engagements rather than long-term commitments to a single employer. This creates a transactional approach to work, where loyalty to companies is replaced by a focus on maximising earnings, diversifying income streams, and securing gigs across multiple platforms.

Blurring the Line Between Work and Personal Life

  • The gig economy often requires workers to be constantly available and responsive to potential job opportunities. Since many platforms use algorithms to match workers with gigs, being offline too long can impact visibility and income potential.
  • This can lead to burnout as workers feel pressure to always be “on” without traditional workplace structures that separate work and leisure.

Erosion of Traditional Employment Benefits

  • Gig workers typically don’t receive benefits such as paid leave, sick leave, or long service. This has raised concerns about the long-term financial stability of workers who rely solely on gig work.
  • As a result, some governments and companies are re-evaluating labor laws to offer better protections for gig workers.

The Rise of Digital Platforms as Employers

  • Tech companies like Uber, Fiverr, Upwork, and DoorDash function as intermediaries between workers and consumers, essentially becoming the new “employers” without formal employer responsibilities.
  • Workers are classified as independent contractors, meaning they must handle their own taxes, and superannuation.

A Shift Toward a Skills-Based Economy

  • Instead of relying on formal education or tenure at a company, gig workers focus on skill-building, personal branding, and niche expertise to secure work.
  • Platforms reward those who can effectively market their skills, often leading to a more competitive and meritocratic job market.

New Economic Opportunities and Challenges

  • The gig economy has created opportunities for people who may not thrive in traditional work environments, such as stay-at-home parents, students, and retirees.
  • However, it also exposes workers to financial volatility, making it difficult to plan for the future or qualify for traditional financial products like mortgages.

While the gig economy empowers workers with choice and autonomy, it also presents challenges related to financial security, legal protections, and work-life balance. How society adapts—through policy changes, labor protections, and new business models—will shape whether the gig economy remains a sustainable option for the workforce of the future.

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