The World Bank has warned that although digital jobs are creating new income opportunities across developing countries, many workers remain exposed to significant risks due to weak regulation and limited labour protections.
The global lender noted that hundreds of millions of people worldwide are engaged in online platform work, excluding location-based services such as ride-hailing and food delivery. In low- and middle-income countries, digital platforms are opening new pathways for employment and entrepreneurship, connecting workers to global demand for services such as freelance writing, software development and microtasks.
Real-life experiences highlight the growing impact of platform work. In South Africa, a woman who spent four years searching for traditional employment turned to writing blog posts for international clients. Her work reached audiences in the United States, India and the United Kingdom, enabling her to build a livelihood through persistence and creativity.
In Vietnam, a 30-year-old software developer used his computer science degree to secure global freelance contracts, earning about $40,000 annually — significantly higher than local wage levels. In Mexico, Uber drivers reported earning three to four times the minimum wage, although they worked extended hours and lacked formal labour protections.
Despite these success stories, the World Bank cautioned that platform jobs often remain precarious. Workers frequently face unstable earnings, long working hours, unclear employment status and limited access to benefits such as health insurance or paid leave.
The institution also highlighted concerns about algorithmic management and concentrated platform power, which can expose workers to arbitrary account suspension or unfair treatment without clear avenues for redress.
Regulating platform work presents additional challenges in developing countries, where informal employment is widespread and enforcement capacity is often weak. In some jurisdictions, platform workers are classified as self-employed, leaving them without formal labour protections. In others, they are reclassified as full-time employees, granting them labour rights but potentially increasing labour costs and affecting job creation.
A growing number of countries are exploring tailored regulatory approaches, including requirements for algorithmic transparency, payment transparency and safeguards against arbitrary disconnection. The World Bank recommends frameworks that strike a balance between protecting workers’ rights and preserving the flexibility that makes platform jobs viable.
The lender emphasised that digital platforms offer governments a unique opportunity to design data-driven and context-specific regulations. Unlike many informal businesses, digital platforms operate through traceable systems and formal payment channels, generating valuable data that can support oversight and policy implementation.
“Platform work is not just a new labour market trend; it’s a test case for dynamic, integrated regulation,” the World Bank stated. “Governments have a rare chance to shape digital employment to benefit workers while keeping these platforms viable.”
