Breaking barriers for women in the gig economy

Establishing minimum pay standards across industries would ensure fair compensation for all gig workers.

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Globally, women continue to face greater challenges in securing employment compared to men.

Despite years of progress, the gender gap in labour force participation has stubbornly persisted, with women’s participation lagging 30 percentage points behind men’s since 1990, according to International Labour Organisation statistics.

The gig economy is no exception. While it has redefined traditional work, providing new income opportunities, accessibility, and flexibility for millions, this shift has introduced distinct challenges, especially for women.

According to a policy brief on Unpacking Issues in the Gig Economy: Policy Approaches to Empower Women in APEC published by the APEC Policy Support Unit in January 2024, 42 percent of universal online gig workers are women.

Yet, they remain concentrated in lower-paying, less-secure positions, often in roles seen as extensions of traditional gender expectations.

The challenges faced by women in the gig economy are significant. The policy brief further highlights that they are paid 11 percent less per hour than their male counterparts, with limited access to critical protections such as health benefits, retirement plans, and income stability.

For many women who juggle multiple roles as primary earners or caregivers, the gig economy’s flexibility comes at a price, as it offers little to no safety net. As a result, women are often drawn to sectors with ample demand but traditionally undervalued and underpaid.

Another key issue is occupational disparity, as high-paying gig roles, particularly in fields like technology continue to be male-dominated.

In contrast, women are every so often guided toward or limited to positions viewed as extensions of household roles, such as caregiving or support tasks, which tend to offer less stability and lower pay. This dynamic not only reinforces outdated gender stereotypes but also restricts women’s opportunities to break into higher-paying sectors, ultimately stifling their economic progress.

The above notwithstanding, the gig economy does hold promise, offering women the autonomy to select projects, set working hours, and pursue roles that align with personal commitments and skills.

For many, freelancing provides an appealing alternative to rigid, traditional employment structures.

However, flexibility alone does not equate to economic security. Without adequate protections, majority of the female gig workers face precarious circumstances, specifically those for whom freelancing is their primary source of income.

Recognising this, it becomes clear that flexibility without safeguards cannot deliver true empowerment.

While freelance roles do enable women’s economic participation, introducing targeted measures could vastly improve working conditions.

Establishing minimum pay standards across industries, for example, would ensure fair compensation for all gig workers.

Similarly, digital platforms can reduce biases in algorithms, programmed to favour certain profiles, by implementing transparent and equitable systems. A 2023 report by the World Bank underscores the importance of addressing these biases to enable equal access to opportunities across gender lines.

Financial support is also essential for achieving equity in the gig economy. Many women lack the capital required to advance their freelance careers.

Here, targeted microfinance programs, tailored small business loans, and accessible upskilling resources can be transformative, mostly in bridging the gap for women entrepreneurs in freelance roles. Governments, institutions, and platforms must play an active role in creating these pathways.

The commitment to empowering women in the gig economy is both urgent and necessary. Initiatives like SheWalks, powered by Johnnie Walker, celebrate women’s resilience and successes in various roles within this sector, amplifying their contributions and encouraging future generations to pursue opportunities once considered unconventional.

Nonetheless, as we recognise these achievements, it is crucial for public and private stakeholders to collaborate on policies that address the gendered obstacles inherent in gig work.

To achieve genuine progress, we must invest in policies supporting fair treatment and economic independence for women. Only by championing inclusive policies and driving meaningful reform can we build a workforce where women are not just participants but pioneers of a more equitable future.

Josephine Katambo, is Marketing Manager for Scotch & Reserve Portfolio at EABL

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