The rising gig economy

The Philippine gig economy is rapidly shaping and transforming the employment landscape in the country, offering unique opportunities for new types of employment where previously none existed. This new labor paradigm is altering how millions of Filipinos work and thrive. Characterized by flexibility and the ability to service multiple digital platforms, gig work has become a crucial component in the country’s growing digital ecosystem.

Fueling the gig economy. The COVID-19 pandemic, while challenging, catalyzed a rapid transition toward digitalization and new forms of digital work. The pandemic also significantly impacted traditional employment avenues, pushing many Filipinos toward gig roles as new livelihoods. In 2020, unemployment hit a record high of 17.7 percent by April, prompting urgent exploration for economic stability. As unemployment tapered to 4.5 percent by mid-2023, gig work solidified itself as a viable form of livelihood.

Presently, Filipino gig workers are well into the millions, driven by increased internet penetration, widespread smartphone usage, and digital platforms, such as Grab, Angkas, Lalamove, etc. According to the Department of Information and Communications Technology, internet penetration reached 75.2 percent in 2024, a key accelerator of this digitally enabled employment model. Complementing this, Payoneer’s Global Freelancer Report positioned the Philippines as one of the leading growth markets for freelance work, noting an annual earnings increase of 35 percent among gig workers.

In today’s dynamic and platform-based environment, inter-application is key as gig-workers use multiple platforms to optimize their income streams. For instance, gig workers and even delivery riders can seamlessly switch from one app or platform to another when bookings slow down. This flexibility allows gig workers to maximize their earnings while maintaining financial flexibility, especially in a more competitive and demand-driven market.

Gig work in nation-building. As the Philippines’ digital economy continues to expand, gig work and new opportunities are emerging, driving national development and broader workforce participation. The gig economy also fosters innovation, entrepreneurship, and economic mobility. For many, it serves as a stepping stone toward financial independence and long-term stability.

Starting as tax-paying microenterprises, gig workers can then grow and expand their operations, contributing to job creation and economic activity. According to the Department of Trade and Industry, micro, small, and medium enterprises constitute 99.5 percent of all businesses in the country and employ more than 63 percent of the workforce. As gig workers scale and grow their business from hiring more staff to increasing their number of vehicles, they evolve from a micro business into a small and medium enterprise. This entrepreneurial growth creates a strong multiplier effect and generates new opportunities within their communities and the entire digital ecosystem.

Policy pathways for gig work. The economic participation of gig workers reinforces the need for policies that support rather than constrain this evolving and highly productive labor segment. Policymakers must also recognize the different business models that allow gig work to be possible and that a one-size-fits-all approach to regulation may stifle innovation in this new and growing sector. Encouragingly, many gig platforms in the Philippines are already advancing worker support systems, while government initiatives seek to address disparities in protection and benefit structures. This convergence is paving the way for gig work to become not just a temporary solution but an enduring employment model that aligns with the evolving aspirations of workers in a digital age.

The growing gig economy in the country is not just a fleeting trend; it represents a profound shift in how work is approached in this new digital age. Embracing and supporting this transformation means adopting measures that would help this industry grow and prosper. As Filipinos navigate this wave, leveraging the gig economy’s strengths will help the country achieve its growth aspirations as a nation. As policymakers and industry leaders calibrate their approaches, the Philippines stands poised to harness the gig economy’s promise of new forms of jobs for Filipinos.

Alliance of Tech Innovators for the Nation (Atin) is a multistakeholder coalition of tech industry players in the Philippines dedicated to advancing inclusive growth through the digital economy. We harness the power of technology and collaborate with the government to foster an enabling environment that supports innovation and sustainable development.