Gig economy offers promise but challenges remain

The rapidly expanding gig economy is playing an increasingly important role in employment generation and foreign currency earnings in Bangladesh, although concerns over worker protection, income security and infrastructure remain major challenges, according to a recent survey and analysis.

The report states that Bangladesh contributes nearly 16 per cent of the global freelance workforce and ranks second globally in supplying online freelancers, helping reduce unemployment while generating around $500 million in annual earnings.

The gig economy refers to temporary, flexible or contract-based work rather than traditional fixed-hour employment.

Workers are paid for individual services or completed tasks instead of receiving permanent salaries or official schedules.

Researchers explained that the sector includes both online freelancing and location-based platform services.

Online or “cloud work” covers activities such as software development, graphic design, content writing and digital marketing for foreign clients.

Location-based services include ride-sharing and delivery platforms such as Uber, Pathao and Foodpanda.

The report noted that platform-based services have become an important “safety valve” for students, unemployed graduates and people seeking additional income, especially in urban areas.

“Unlike official work, starting at 8 a.m. and ending at 5 p.m., the gig economy serves as temporary and contract-based work,” the report said.

According to the survey, around 78 per cent of Bangladeshi freelancers are educated graduates or postgraduates.

Their activities contribute nearly two per cent of the country’s Gross Domestic Product (GDP), while overseas freelance earnings strengthen foreign exchange reserves.

The study highlighted several benefits of the growing gig economy, including employment creation, work flexibility and digital skill development.

It said gig work allows individuals to choose when and where they work, making it attractive for students, young people and those preferring independent employment.

However, the report also identified significant vulnerabilities faced by gig workers.

“The biggest problem is that workers are not safe,” it stated, noting that many gig workers are treated as “independent workers” and therefore lack access to minimum wage guarantees, sick leave, health insurance, social security and accident compensation.

Ride-sharing drivers and delivery workers remain particularly exposed to accidents and financial insecurity, while freelancers face unstable earnings caused by changing market demand, internet disruptions and global competition.

The report further warned that the emergence of Artificial Intelligence (AI) is shrinking opportunities for many freelancers whose existing skills are becoming outdated.

“The trained freelancers are struggling to have jobs due to a lack of proper skills, as the previous skills have been engulfed by Artificial Intelligence,” it observed.

Researchers also pointed to inadequate logistical and infrastructural support, especially in remote areas where high-speed internet access, advanced training and computer facilities remain limited.

Gender disparity remains another major concern. The report said only around 10 per cent of women participate in gig economy sectors, while male workers dominate ride-sharing and freelancing platforms.

The study included an example of the risks faced by migrant gig workers abroad.

It mentioned Manzur, a Bangladeshi delivery worker in Saudi Arabia, who reportedly paid more than $4,000 to secure employment through a recruiter.

After months without pay and later suffering serious injuries in a traffic accident, he returned home without receiving recommended surgery because of mounting debt.

To ensure sustainable growth of the sector, researchers recommended introducing clearer laws and regulations to define the rights and responsibilities of gig workers.

They also called for customised social safety nets, fair contracts, accident compensation and low-interest loans for workers to access training and equipment.

The report stressed that Bangladesh must expand digital skill development programmes so workers can adapt to changing technologies and remain competitive in the global freelancing market.

“The gig economy is here to stay and is becoming a more important part of Bangladesh’s economy,” the report concluded. “The main challenge for the country’s future is to make sure that this growth is fair and includes everyone.”