Digital Gig Platforms Transform Work Across Asia-Pacific, Study Warns of Risks

Digital platforms are rapidly transforming work across Asia and the Pacific, offering flexible income opportunities while expanding service-led economic growth. However, the rise of gig and platform work also raises concerns about worker protections, income stability and the need for updated labour regulations.

Digital platforms are rapidly changing how people work across Asia and the Pacific, creating new opportunities while raising concerns about job security and labour rights. A new study by the International Labour Organization (ILO), with research contributions from the JustJobs Network and insights from institutions such as the Asian Development Bank, the World Bank and the ASEAN Secretariat, examines how the growing platform economy is transforming employment in the region.

The report highlights how apps and online platforms now connect millions of workers with customers for services such as ride-hailing, food delivery, household work and online freelancing. These platforms have become an important part of modern economies as many countries shift toward service-led growth. While they offer flexibility and income opportunities, they also challenge traditional labour laws designed for standard employer–employee relationships.

A Fast-Growing Digital Economy

The platform economy has expanded rapidly over the past decade. Digital platform companies worldwide are now worth trillions of dollars, and Asia and the Pacific have emerged as among the most active regions for platform-based services. China has become a major hub for platform companies, while many Southeast Asian and South Asian economies are seeing strong growth in ride-hailing, delivery services and digital freelancing.

Millions of workers across the region now earn income through platforms. However, the exact number remains unclear because many countries do not yet track gig or platform work through official labour statistics. Estimates suggest tens of millions of workers in the region participate in online freelancing or on-demand services.

This expansion is closely linked to broader economic changes. Over the past few decades, many countries in Asia and the Pacific have shifted away from agriculture toward industry and services. Today, services account for a large share of economic activity in most countries in the region. Digital platforms have become an important part of this shift, helping businesses and individuals connect quickly and efficiently.

Opportunities for Workers and Youth

For many workers, especially young people, digital platforms provide new ways to earn income. In countries where job creation struggles to keep pace with the number of people entering the labour market, platform work can offer a quick entry point into employment.

Workers can often choose their own schedules, accept tasks when available and work from different locations. Online platforms also allow freelancers to work for clients in other countries, opening up international opportunities that were previously difficult to access.

This flexibility can be particularly useful for students, part-time workers or individuals with family responsibilities. In some cases, platforms have also helped workers gain new skills and experience that can improve their employment prospects.

However, the benefits are not evenly distributed. Access to platform work often depends on internet connectivity, digital skills and access to smartphones or computers. In many developing economies, these barriers still limit participation for large segments of the population.

Concerns Over Job Quality and Protection

Despite the opportunities, the rise of platform work has raised serious concerns about working conditions. Many platform companies classify workers as independent contractors rather than employees. As a result, workers often do not receive benefits such as minimum wage protection, health insurance or pension contributions.

Workers may also face unpredictable income. Since payment is often tied to the number of tasks completed, workers sometimes stay online for long hours waiting for assignments. In sectors such as ride-hailing or food delivery, extended working hours can increase the risk of fatigue and accidents.

Another challenge is the use of algorithms to manage workers. Platforms use automated systems to assign tasks, monitor performance and determine pay. Workers often have little information about how these systems operate, which can create frustration and disputes when earnings or job opportunities change unexpectedly.

Governments Begin to Respond

Governments across Asia and the Pacific are beginning to address these challenges by updating labour regulations and introducing new policies for platform workers. Some countries are extending social protection benefits such as accident insurance or unemployment coverage to gig workers. Others are exploring ways to ensure fair pay, improve safety conditions and increase transparency in how platforms operate.

Several governments are also discussing new categories of employment that sit between traditional employees and independent contractors. These frameworks aim to preserve the flexibility of platform work while providing basic protections for workers.

Experts say that stronger data collection and dialogue between governments, businesses and workers will be essential to shaping effective policies. As the platform economy continues to expand, policymakers must find ways to support innovation while ensuring that workers are treated fairly.

The ILO report concludes that the platform economy will remain a major force in the future of work across Asia and the Pacific. The challenge now is to ensure that this digital transformation leads not only to economic growth but also to decent and secure jobs for millions of workers in the region.