The Gig Economy and Sustainable Development Goals (SDGs): A Report

Introduction

The gig economy offers workers the appeal of flexibility in their professional lives. However, algorithmic management often increases company control and reduces worker protections, compelling workers to operate during peak demand periods. As artificial intelligence (AI) advances rapidly, the outcome of gig workers’ rights struggles will have widespread implications.

Worker Perspectives and the Reality of Gig Work

“The gig economy is zero rights and zero protection,” says Shaf Hussain, a food delivery courier in London. “But I don’t think I’ll ever be able to work for someone again.”

“Even though we are being controlled by these companies, I like that small degree of independence you have. I’ve not got any human boss on me.”

Gig workers desire autonomy, often transitioning from low-paid, supervised jobs to gig work for greater independence. However, their work is micro-managed by algorithms that maximize efficiency and minimize labor costs, limiting true autonomy. This tension is central to ongoing debates in Europe about the classification of gig workers as independent contractors or employees under algorithmic management.

Algorithmic Management: Historical Context and Modern Application

Algorithms: From Algebra to Gig Economy

Algorithms, invented over 1000 years ago by Muhammad ibn Mūsā al-Khwārizmī, provide algebraic rules for problem-solving. Modern gig economy algorithms automate task allocation, such as assigning couriers to food pickups, processing vast data instantly to optimize operations.

Data Collection and Worker Monitoring

• Platforms like Uber collect extensive data on workers, including 80 data points per ride-hail driver.
• Time tracking enables pay-per-task models rather than hourly wages.

Pay-Per-Task and Dynamic Pricing

Pay-per-task systems echo historical “piece wages” criticized by Karl Marx for extending work hours and reducing wages. Modern platforms increase their commission “take rates” through dynamic pricing, algorithmically adjusting pay based on supply, demand, and personal worker data, often without transparency.

“When I go to work, I don’t know how much I’m going to make,” says Pascal, a Wolt courier in Finland. “We don’t even know how they determine the payment amounts. It feels like we have been betrayed.”

This algorithmic wage discrimination forces workers to extend hours to maintain income, undermining SDG 8 (Decent Work and Economic Growth) by perpetuating insecure and unfair labor conditions.

Flexibility in Gig Work: Myth or Reality?

Worker Experiences and Challenges

“My son never gets to see me,” says Barbara, a Just Eat courier in Belfast. “I sometimes work 15 hours a day because the price of everything is going up but our pay is going down. We can’t continue to live like this.”

While gig platforms promote flexibility, workers relying solely on gig income face demands dictated by consumer peak times, such as weekend nights. Surge pricing incentivizes working during these periods but often at the cost of personal and family time, impacting SDG 3 (Good Health and Well-being) and SDG 5 (Gender Equality), as women with caregiving responsibilities earn less due to reduced availability during peak demand.

Gender Inequality and Cloud Work

• Women often seek gig work for flexibility but face client demands requiring anti-social hours.
• This undermines work-life balance and perpetuates gender disparities in earnings and working conditions.

True flexibility must include income security and workplace rights to align with SDG 10 (Reduced Inequalities) and SDG 16 (Peace, Justice, and Strong Institutions).

The EU Platform Work Directive (PWD)

Legislative Efforts and Challenges

Adopted in December 2024, the PWD aims to clarify employment classification for gig workers across the EU’s 27 member states. It establishes a legal presumption of employment but allows member states discretion in implementation, potentially leading to inconsistent protections.

Spain’s “Riders’ Law” exemplifies strong employment rights, while countries like France and Germany show resistance, reflecting divergent approaches within the EU.

Implications for Workers and Platforms

• Platforms like Uber intend to maintain the status quo, resisting employment classification.
• Unions and platforms are expected to engage in legal battles to define gig workers’ rights.
• Member states must transpose the directive into national law by December 2026.

The directive’s outcome will influence SDG 8 (Decent Work and Economic Growth) and SDG 17 (Partnerships for the Goals) by shaping fair labor standards and cooperation across nations.

Artificial Intelligence and the Future of Gig Work

Expansion of Algorithmic Management

Studies indicate that 20–35% of workers in countries like Germany and Spain experience algorithmic management, with 79% of European companies using such systems. The gigification of work is expanding beyond traditional sectors.

Generative AI and Data Annotation

The rise of generative AI creates demand for data annotators who train and refine AI systems on gig platforms. These roles increasingly require specialized expertise, potentially leading to further gigification of skilled professions.

Social Contract and Worker Rights

As AI reshapes work, debates about the social contract and labor rights intensify. The treatment of current gig workers will influence future employment models, impacting SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

Conclusion

The gig economy presents complex challenges and opportunities in achieving the United Nations Sustainable Development Goals. While offering flexibility, it often compromises worker rights, income security, and equality. Legislative measures like the EU Platform Work Directive represent steps toward addressing these issues, but ongoing vigilance and adaptation are necessary as AI and algorithmic management evolve. Ensuring decent work conditions, reducing inequalities, and fostering innovation aligned with human rights remain critical for sustainable development.

1. Sustainable Development Goals (SDGs) Addressed in the Article

1. SDG 8: Decent Work and Economic Growth
   • The article discusses workers’ rights, employment classification, fair wages, and working conditions in the gig economy.
2. SDG 5: Gender Equality
   • It highlights gender disparities in earnings and challenges faced by female gig workers balancing caring responsibilities.
3. SDG 10: Reduced Inequalities
   • The article addresses income inequality, wage discrimination, and unequal power relations between platforms and workers.
4. SDG 9: Industry, Innovation and Infrastructure
   • It touches on the role of algorithmic management, AI technologies, and digital platforms in transforming work.
5. SDG 16: Peace, Justice and Strong Institutions
   • Discussions on legal frameworks like the EU Platform Work Directive and workers’ rights protection relate to this goal.

2. Specific Targets Under Those SDGs Identified in the Article

1. SDG 8: Decent Work and Economic Growth
   • Target 8.5: Achieve full and productive employment and decent work for all women and men.
   • Target 8.7: Eradicate forced labour, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labour.
   • Target 8.8: Protect labour rights and promote safe and secure working environments for all workers.
2. SDG 5: Gender Equality
   • Target 5.4: Recognize and value unpaid care and domestic work through provision of public services and social protection policies.
   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making.
3. SDG 10: Reduced Inequalities
   • Target 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
4. SDG 9: Industry, Innovation and Infrastructure
   • Target 9.5: Enhance scientific research, upgrade technological capabilities and encourage innovation.
5. SDG 16: Peace, Justice and Strong Institutions
   • Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all.

3. Indicators Mentioned or Implied in the Article to Measure Progress

1. Indicators related to SDG 8
   • Proportion of informal employment in non-agriculture employment, reflecting precarious gig work conditions.
   • Average hourly earnings of workers, including those paid per task, to assess wage fairness and income security.
   • Number of workers covered by collective bargaining agreements or labour protections, linked to unionization in gig economy.
   • Incidence of algorithmic management and its impact on working hours and conditions.
2. Indicators related to SDG 5
   • Gender wage gap among gig workers performing the same tasks.
   • Proportion of female workers able to balance work and caring responsibilities effectively.
3. Indicators related to SDG 10
   • Income inequality measures within gig economy workers, especially regarding dynamic pricing and pay discrimination.
4. Indicators related to SDG 16
   • Number of countries implementing legal frameworks like the EU Platform Work Directive.
   • Number of legal cases or disputes related to employment classification in gig economy.

4. Table of SDGs, Targets, and Indicators

Source: resilience.org