However, gig workers face major economic insecurities. Most lack health insurance, paid leave, job protection, or retirement benefits. Their income can fluctuate dramatically, and they bear the costs of equipment, transportation, and time off. Algorithmic management — where an app decides who gets jobs and how they’re rated — adds pressure and limits transparency.
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Moreover, gig workers are typically classified as independent contractors, which means they don’t receive the legal protections and benefits afforded to employees. This legal grey area has sparked debates in courts and legislatures worldwide.
From an economic perspective, the gig economy reflects a shift in labor markets. Companies are becoming leaner, outsourcing more, and prioritizing short-term flexibility over long-term loyalty. While this can boost productivity and innovation, it also creates a fragmented workforce with fewer safety nets.
