Job Market Transformation in the Digital Age: The Dynamics of Gig Workers in the Indonesian Economy

Abstract

The gig economy has emerged as a global phenomenon reshaping the traditional employment landscape, characterized by the increasing role of digital platforms as intermediaries between workers and consumers. In Indonesia, the growth of the gig economy runs in parallel with the dominance of informal labor, which constitutes more than half of the workforce. The gig economy provides opportunities for work flexibility, additional income generation, and contributes to national economic growth, as evidenced by the significant role of ride-hailing platforms and the digital creative sector in the country’s Gross Domestic Product. On the other hand, gig workers face considerable vulnerabilities, including income insecurity, extended working hours, and limited access to social protection and legal safeguards. This study aims to review the development of the gig economy in Indonesia through a literature-based approach and to examine its social and economic implications for workers. By understanding the characteristics, roles, and challenges of gig workers, this research seeks to provide a more comprehensive picture of the future of labor in the digital era.