Consumer Behaviour in the Gig Economy: Implications for Traditional Labour Market

Abstract

The gig economy is fast evolving, typified or characterised by short-term, flexible and task-based digital platforms. This paper investigates how consumer behaviour in the gig economy affects traditional labour markets, focusing on structural shifts in employment and changes in labour market dynamics. It gives an overview of the gig economy, which has experienced rapid growth in transitioning towards flexible, short-term employment arrangements through platforms enabled by digital technologies. The study also highlights the different types of gig platforms, such as ridesharing, freelance marketplaces, and on-demand services, by elaborating on their specific feature and business models. The study reinforces that consumer buying behaviour in the gig economy predicts convenience, cost-effectiveness, and speed of service delivery. The study also indicates that the gig economy has significant implications on the labour market dynamics since new forms of employment challenge regular job security, benefits, and worker rights. These findings support that while the gig economy provides greater flexibility to workers, it also creates more significant issues related to income instability and removing traditional labour protection. The challenges associated with the gig economy are also investigated, including regulatory obstacles, poor or insufficient worker protection, and the long-term viability of gig platforms in light of rising competition. The study concludes that although the gig economy provides new opportunities for consumers and workers, it also involves many challenges that must be thoroughly deliberated and mitigated by policymakers and industry representatives.