What Is the Gig Economy?

The term “gig economy” refers to a labour market where temporary, flexible jobs are common and companies tend to hire independent contractors instead of full-time employees. This includes ride-share drivers, food delivery workers, freelance designers, tutors, and a growing cohort of digital creators. Platforms like Uber, Deliveroo, Fiverr, Airtasker, and Upwork have become major gateways into this kind of work.

For many young people, gig work is appealing. It offers freedom from the 9-to-5 routine, control over work schedules, and in some cases, the opportunity to monetise a passion or skill. It can also serve as a bridge between studies and full-time employment, or as a side hustle to supplement income in an uncertain job market.

The Trade-Off: Flexibility vs. Stability

Despite its upsides, gig work rarely offers the financial stability or legal protections of traditional employment. Gig workers are usually classified as “independent contractors,” which means they are not entitled to minimum wage guarantees, paid leave, superannuation, or protection against unfair dismissal. In effect, the risks of employment—fluctuating demand, lack of sick days, unpredictable income—are shifted from the employer to the worker.

For young adults, many of whom are already coping with student debt, high rents, and rising living costs, the lack of predictable income can be daunting. A single bad week can mean not covering rent or bills. In the long term, the absence of superannuation contributions and paid annual leave can result in financial gaps that compound over time.

A 2023 report by the McKell Institute found that nearly 1 in 4 young workers in Australia are engaged in some form of insecure work. Many are classified as casual, contract-based, or gig workers, often juggling multiple jobs to make ends meet. For those without a financial safety net, this makes planning for the future—saving for a house, starting a family, or investing in professional development—much harder.

The Mental and Emotional Toll

Job insecurity is not just an economic issue—it takes a psychological toll. Gig workers often report higher levels of stress and anxiety due to income unpredictability, job precarity, and the lack of workplace community. Many also experience “algorithmic management,” where performance is monitored and rated by apps or customer reviews, leading to pressure to be constantly available and perform perfectly just to maintain access to work.

Additionally, the absence of career development pathways in gig roles can lead to feelings of stagnation. While gig work may offer immediate income, it often provides limited opportunities for skill-building, promotions, or long-term growth.

Regulation and Reform: What Can Be Done?

The rapid rise of the gig economy has outpaced many existing labour laws. However, governments are starting to respond. In 2023, Australia’s Fair Work Commission ruled that some gig workers may be entitled to minimum wages and basic protections, especially if the platform exercises significant control over their work. Similar reforms are under consideration in the UK, the EU, and several US states.

Some companies are also exploring hybrid models that offer more security without sacrificing flexibility. For instance, providing access to superannuation, injury protection, or minimum earnings floors while retaining flexible work arrangements.

Unions and worker advocacy groups are playing a growing role, pushing for platform accountability and more robust protections. There is also increasing demand for “portable benefits” systems—where benefits like sick leave and superannuation follow the worker, regardless of employer.

Empowering Young Workers in a Changing World

Young adults entering the workforce today face a different reality than their parents did. While gig work can provide valuable experience, autonomy, and income, it should not come at the cost of long-term well-being or basic rights. Understanding the risks and advocating for reforms is essential to ensuring that flexibility doesn't become a euphemism for exploitation.

As the nature of work continues to evolve, so too must the policies and protections that support workers. For now, the best strategy for young adults may be a balanced one: use gig work to gain flexibility or build skills, but remain proactive about financial planning, skill development, and seeking opportunities with clearer long-term prospects.