Digital Platform Work Reshaping Labor in Latin America and the Caribbean: New ILO Study

As the digital platform economy continues to grow, particularly in the web-based freelance sector, Latin America and the Caribbean stand at a crossroads.

Digital transformation is rapidly reshaping labor markets across Latin America and the Caribbean (LAC), ushering in new opportunities while exposing significant regulatory and social protection challenges. A recent report by the International Labour Organization (ILO) titled “Survey on Workers in Web-Based Digital Platforms: New Data for the Latin America and the Caribbean Region” offers a revealing window into the lives, aspirations, and difficulties faced by workers engaged in this emergent labor modality.

Based on responses from over 1,000 workers in 21 countries across the region, this comprehensive study focuses on a specific and often overlooked segment of the platform economy—web-based digital platform work. Unlike delivery or ride-hailing platforms, web-based platforms connect freelancers to global clients for tasks ranging from software development to microtasks like image annotation or training AI systems. The ILO’s findings underscore the growing significance of this workforce, both within the region and as part of a larger global ecosystem.

Key Findings: Urban, Educated, Globally Connected Workforce

One of the most striking aspects of the study is the profile of workers engaged in web-based platform work in LAC:

• Urban Demographics: A substantial 93% of respondents live in urban areas, highlighting the city-centric nature of digital platform work, which benefits from internet connectivity and digital infrastructure more accessible in urban locales.

• Young and Educated Workforce: The median age of these workers is just 33 years, and over half have completed university education. This suggests that digital platform work is particularly attractive to younger generations who are digitally literate and often seek flexible or supplementary income sources.

• Migrant Presence: Eight percent of those surveyed identify as migrants, with Venezuelans comprising nearly half of this subgroup—illustrating how political and economic instability is pushing many to seek alternative income through remote digital work.

• Global Clientele: Over 53% of workers perform tasks for clients based in other countries. Notably, 90% of those who are aware of their clients’ locations report they are located outside the LAC region—primarily in the United States and Canada. This cross-border interaction reveals the globalized nature of the digital platform economy and positions LAC workers as part of an international labor supply chain.

Earnings and Income Variability: Promises and Pitfalls

The report delves deeply into the economic realities of platform workers:

• Income Distribution: The median hourly income is USD 2.57, while the average income is USD 5.48, suggesting high variability. This discrepancy implies that while a small number of workers may earn significantly more, the majority fall below the average, reflecting economic instability and potential precarity.

• Not a Main Job for Many: For 52% of workers, platform work is not their main source of income, indicating its role as a supplement rather than a replacement for traditional employment in many cases. This could reflect limited availability of full-time digital work, low pay, or workers’ preference for diversified income streams.

---

Flexibility vs. Protection: The Policy Conundrum

While the flexibility of digital platform work is celebrated by many—allowing individuals to balance work with education, caregiving, or other jobs—the report raises critical concerns regarding social protection:

• Health and Social Security Coverage: Around 40% of surveyed workers are not covered by any form of health insurance or social security. This reveals a significant gap in worker protections, potentially leaving large segments of the population vulnerable in the event of illness or unemployment.

• Policy Implications: The findings underline the urgent need for public policies that ensure decent working conditions, even within such flexible, decentralized work environments. This includes social protections, minimum wage standards, and mechanisms for collective bargaining.

ILO’s Broader Agenda and the Upcoming International Labour Conference

The release of this report comes ahead of the 2025 International Labour Conference, where ILO’s tripartite constituents—governments, employers, and workers—will engage in critical discussions on the normative frameworks needed to regulate digital platform work.

Ana Virginia Moreira Gomes, ILO Regional Director for Latin America and the Caribbean, emphasized the significance of the report as a foundational tool for these dialogues:

“This report is a fundamental tool to strengthen social dialogue and enrich discussions on how to promote decent work in a rapidly evolving digital environment.”

The study's empirical insights will support context-sensitive policymaking, facilitating better understanding of the socioeconomic realities faced by digital workers and guiding regional efforts to foster fairer and more inclusive digital labor systems.

Conclusion: Navigating the Future of Work

As the digital platform economy continues to grow, particularly in the web-based freelance sector, Latin America and the Caribbean stand at a crossroads. Policymakers must balance the benefits of labor flexibility and global reach with the urgent need for protections and fair conditions for all workers. The ILO’s report shines a much-needed spotlight on this evolving landscape and provides a data-driven basis for crafting informed and forward-looking labor policies.

By fostering inclusive dialogue and placing worker realities at the heart of policy discussions, the region can ensure that the digital future of work is one that offers not just opportunity, but dignity and security for all.