A literature Study: The Positive Impact of The Gig Economy on Unemployment in The Indonesian Labor Force
Keywords:
gig economy unemployment platform-based digital work labor IndonesiaAbstract
In February 2025, Indonesia recorded a total of 3.67 million workers, reflecting a continuous increase in the labor force and posing significant challenges to the national labor market. In this context, the gig economy has emerged as a transformational model that offers alternative income sources through platform-based digital work. This type of employment includes online transportation services, delivery services, and project-based freelance work. By leveraging digital technology, the gig economy enables interactions between service providers and consumers to occur more quickly, efficiently, and flexibly. This study is a literature review that aims to analyze the positive impact of the gig economy on unemployment in Indonesia. The findings indicate that the gig economy has the potential to absorb millions of workers within a relatively short period, thereby helping to reduce unemployment levels. Moreover, the gig economy creates inclusive employment opportunities for vulnerable groups, including individuals with low education levels and workers affected by layoffs. Its flexibility also allows workers to manage their schedules, choose suitable types of work, and earn income to meet their economic needs. In addition to its role in labor absorption, the gig economy contributes to national economic growth through the increase of Gross Domestic Product (GDP), expansion of access to productive activities, and strengthening of household purchasing power. Although the gig economy provides tangible benefits in reducing unemployment, its long-term sustainability depends on adaptive labor policies that address issues related to worker protection, social security, and job security. Therefore, this study emphasizes the importance of strengthening the role of the gig economy not only as a short-term solution to unemployment but also as a strategic instrument in developing an inclusive and sustainable labor market in Indonesia.
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