Gig Economy In Australia: Size And Scope

how big is the gig economy in australia

The gig economy in Australia has been rapidly expanding in recent years. At the end of 2020, around 250,000 Australians were believed to be working in the gig economy, which grew ninefold between 2015 and 2019. In 2024, the number of independent contractors in Australia reached 1.1 million, constituting 7.5% of all employed individuals. The gig economy encompasses a diverse range of jobs, from niche professional services to on-demand work for delivery and rideshare companies. While it offers flexibility and freedom to workers, it also comes with disadvantages such as lack of stability and certain workplace entitlements. The Australian government is working towards introducing regulations to protect gig workers and provide them with minimum worker protections.

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Gig economy workers in Australia

The gig economy in Australia has been growing rapidly. At the end of 2020, around 250,000 Australians were believed to be working in the gig economy, which has expanded quickly in recent years. A report by the Actuaries Institute found that the gig economy in Australia grew ninefold between 2015 and 2019, with a 33% increase in 2019 alone, bringing its value to $6.3 billion.

Gig workers are independent contractors who perform short-term or one-off services, usually facilitated by online platforms and mobile apps. Examples of gig work include delivering food via Uber Eats, ridesharing via Uber or Lyft, renting out a home on Airbnb, doing freelance work via Fiverr, or selling homemade items via Etsy.

The gig economy offers workers flexibility, freedom, and independence. Gig workers can set their own schedules, work remotely, and choose when and how much they work. They can also pursue their passions and develop diverse skill sets by working on a variety of projects.

However, there are also disadvantages to gig work. Gig workers lack the stability and perks of traditional employment, such as sick pay, paid time off, and pensions. They are responsible for reporting their income, paying the correct taxes, and ensuring they have adequate insurance and pension plans.

Recognizing the unique challenges faced by gig workers, the Australian government has proposed legislation to protect and provide minimum standards for gig workers. The legislative proposal aims to extend the regulatory powers of the Fair Work Commission (FWC) to include roles related to contracted workers and set minimum wages and conditions for them. These changes are intended to hold on-demand platforms accountable and provide gig workers with the job security and workplace entitlements afforded to most other employees.

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Pros and cons of gig work

The gig economy in Australia has been growing rapidly, with a nine-fold increase between 2015 and 2019, and a 33% increase in 2019 alone, when it was valued at $6.3 billion. At the end of 2020, around 250,000 Australians were believed to be working in the gig economy.

Now, here are the pros and cons of gig work:

Pros of gig work

The gig economy offers workers flexibility and freedom. They can set their own schedules, work from anywhere, and choose the type and amount of work they do. This can lead to increased job satisfaction and creativity. Gig workers also have the independence to manage their time and complete tasks without constant supervision. They can also set their rates and have control over their earnings.

Cons of gig work

The main disadvantage of gig work is the lack of stability and job insecurity. Gig workers might not know when they will get their next gig and how much they will earn. They also miss out on traditional job benefits like sick pay, paid time off, pension, and health insurance. They have to manage their own taxes and expenses, and often lack the protection of minimum wages, unions, or salary scales.

Other considerations

The gig economy provides extra income for many, and some people do gig work alongside their regular jobs. It also provides society with immediate access to specialized workers. However, it is important to note that gig work can be unpredictable and may not offer full-time payment. It may also not provide financial security, and workers have to be mindful of expenses like insurance and pension plans.

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Examples of gig work

The gig economy in Australia offers flexibility to employees and employers. Gig workers can choose their jobs, dictate their hours, take multiple contracts, set their rates, and work remotely.

Food delivery

One of the most common types of gig work in Australia is food delivery. Food delivery drivers work with apps such as UberEATS, Deliveroo, DoorDash, Instacart, and Menulog. These platforms allow customers to order food from a variety of restaurants and have it delivered to their doorstep. Food delivery drivers typically work on a flexible schedule and can choose when and where they want to deliver.

Ridesharing

Ridesharing services such as Uber and Lyft have also become popular in Australia. Ridesharing drivers use their own vehicles to transport passengers and are usually paid based on the distance and duration of the trip. Like food delivery, ridesharing offers flexibility, allowing drivers to set their own schedules and work as much or as little as they want.

Renting out property

Many people in Australia use platforms like Airbnb to rent out their homes or apartments to travellers and tourists. This type of gig work can provide a source of additional income, especially in popular tourist destinations or during high-demand periods.

Freelance work

Freelance work is another common form of gig work in Australia. Freelancers can find work in various fields, including writing, coding, design, marketing, and consulting. Websites like Upwork, Fiverr, and Freelancer connect freelancers with clients looking for specific skills or services. Freelance work allows professionals to work remotely and choose their projects and clients.

Odd jobs and errands

Platforms like TaskRabbit and Airtasker enable people to find workers for odd jobs and errands, such as cleaning, running errands, assembling furniture, or other miscellaneous tasks. These platforms offer a convenient way for individuals or businesses to outsource tasks that they may not have the time or expertise to complete themselves.

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The future of the gig economy

Secondly, the gig economy provides cost-effective solutions for businesses. Gig workers can be hired on a project or hourly basis, allowing companies to scale their workforce up or down as needed and access niche expertise without long-term commitments. This flexibility, combined with the rise of freelancer management systems and temporary labour payroll providers, makes hiring gig workers an attractive option for businesses.

Thirdly, the regulatory landscape is evolving to protect gig workers. The Australian government has proposed laws to provide minimum worker protections, address payment and safety concerns, and hold on-demand platforms accountable for their practices. These changes aim to give gig workers the job security and entitlements afforded to traditional employees.

However, the gig economy also faces challenges. One major concern is the lack of stability and perks such as sick pay, paid time off, and pensions for gig workers. Additionally, archaic forms of regulation may struggle to keep up with innovative technologies, and there are ongoing discussions about the independent contractor status of gig workers.

Overall, the gig economy in Australia is likely to continue growing and evolving, driven by worker preferences for flexibility, cost-effectiveness for businesses, and regulatory changes. However, addressing the challenges posed by the gig economy, such as worker instability and regulatory complexities, will be crucial in shaping its future.

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How to find gig work

The gig economy in Australia has grown rapidly in recent years, with the country's gig economy valued at $6.3 billion in 2019. Gig workers are independent contractors who perform short-term services or provide goods, usually via an app or a website. They are often paid by the task and may work multiple temporary jobs at once.

Network

Reach out to contacts in your personal and professional networks and ask for help discovering freelance jobs that you can complete virtually.

Join an online marketplace or on-demand app

Gig workers usually find jobs via a website or a mobile app. Examples of gig economy platforms include Airbnb, Uber, Care.com, Fiverr, Upwork, and even Etsy. There are also Australian-based platforms such as Dream Gig and gigexchange.

Update your profile and portfolio

Ensure your resume and online profile showcase your ability to juggle multiple projects and include examples of any freelance work you've completed in the past.

Consider your transferable skills

Think about the range of skills you use daily and how you might apply them to a different type of job. For example, if you have strong communication and customer service skills, you could explore opportunities as a remote call centre representative.

Keep a routine

Maintaining a fixed schedule can help you stay motivated and productive. Make a to-do list for the week and keep a calendar of virtual meetings you've scheduled.

Frequently asked questions

The gig economy is a workforce of people who provide short-term services or goods, usually via an app or a website. Gig workers are paid for individual gigs rather than receiving a salary. Examples of gig work include renting out your apartment on Airbnb, driving for Uber, or selling homemade items via Etsy.

The gig economy in Australia is growing. At the end of 2020, around 250,000 Australians were believed to be working in the gig economy. According to the Australian Bureau of Statistics, as of August 2024, there were 1.1 million independent contractors in Australia, making up 7.5% of all employed individuals.

Gig work offers a lot of flexibility and freedom. You can set your own schedule, work remotely, and choose when and how much you work. You also have the autonomy to take on projects that align with your interests and goals, making it a good option for those seeking variety and independence.

One of the main disadvantages of gig work is the lack of stability. Gig workers may not know when they will get their next gig or how much they will earn. They also often lack perks such as sick pay, paid time off, and pensions, and must organise their own insurance and pension plans.

The Australian government has proposed laws to give gig workers minimum worker protections and the same job security afforded to most other workers. The laws would allow the Fair Work Commission to set out minimum standards for gig workers around issues like pay, insurance, and working conditions.

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