Migrant workers make up 17% of global digital workforce – ILO

A recent International Labour Organization (ILO) survey reveals that approximately 17 per cent of freelance work on digital platforms globally is undertaken by migrant workers in developing regions.

International migrants account for roughly 4.9 per cent of the global workforce, a figure that shows they are often over-represented in jobs based on digital platforms, especially in online services and delivery work.

The platform economy has become a vital part of our digital world. Digital platforms are frequently promoted as a viable means of income for refugees, yet practical experience reveals that inadequate technological infrastructure and limited digital skills can significantly hinder their online earning potential.

About the platform economy

The platform economy covers many fields – from accommodation and advertising to market research, arts, entertainment, recreation, care services, education, financial services, information and communication, home repairs, transport, and both wholesale and retail trade.

Big names such as Amazon, Airbnb, Uber, Microsoft, Google, Apple, and Facebook are all key players in this space.

Unlike traditional businesses, many digital platforms are structured to facilitate interactions between consumers and providers, creating value on both sides of the transaction.

Their worth largely hinges on their capacity to effectively connect supply with demand. Over time, various platform business models have emerged to offer goods and services, including open source, freemium, ad-supported, subscription-based, and two-sided ‘on-demand’ models.

The platform economy is dynamic and expanding, encompassing “billions of supply-side and demand-side users, millions of app developers, thousands of digital infrastructure firms and hundreds of multisided platform firms”, according to the ILO report.

The rise of digital platforms across diverse economic sectors has led to a reduction in market prices. Depending on their market power, these savings may either be passed on to consumers or used to boost the profit margins of the platforms themselves.

Moreover, the concentration of wealth within leading firms allows them to exert significant influence over innovation, shape digital infrastructure, and erect formidable barriers to entry. This trend is clearly illustrated by the Platform Index, which tracks the market value of the 25 largest publicly traded platform companies.

Notably, between 2017 and 2021, the index outperformed traditional benchmarks such as the NASDAQ, Dow Jones, and DAX40.

Gender distribution of digital platform work

Studies focusing on micro-task platforms have highlighted a marked gender imbalance, with men predominating and only about one in three workers estimated to be female.

Women are notably scarce in sectors such as passenger transport and delivery, though they feature more prominently on platforms related to traditionally female-dominated areas like care, domestic work, and beauty services.

Recent data, however, offers a more nuanced perspective. For instance, a World Bank study found that in some online sectors, female participation surpasses that seen in comparable non-platform roles.