Both globally and in Israel, the gig economy has rapidly changed the structure of the labor market.

More specialty freelance, contract, and part-time jobs are becoming available, especially in hotspots such as Tel Aviv and Jerusalem. This indicates a change in the traditional scope of employment.

The convenience of flexible work arrangements and the rise of digital platforms have played a crucial role in shaping Israel’s employment landscape.

One major contributor to this shift is the proliferation of rideshare services such as Uber and Gett, which have created a new wave of job opportunities for those seeking flexible income. However, the flexibility that these jobs provide greatly benefits workers, along with tremendous risks that revolve around a lack of job security and legal protections.

The growth of gig economy jobs in Israel

The rapid growth of contractors within Israel disproves their assumption of being unemployed. Numerous sectors showcase an obvious and rapid transformation towards a gig economy. Some of those sectors include but are not limited to:

• Marketing: Independent contractors for tourism and travel.
• Transport: Uber and Grab car services.
• Administrative Service: Food and document delivery systems such as Wolt and Ten Bis.
• Hospitality and Tourism: Short-term rentals and freelance tour guides catering to Israel’s thriving tourism sector.

Digital platforms have made it easier than ever for workers to connect with clients, creating an economy that thrives on flexibility and convenience. With Israel’s strong tech industry, gig platforms continue to evolve, offering more opportunities for those looking to work on their own terms.

Opportunities for workers in the gig economy

Hailing a ride in just a few minutes or getting food delivered at any hour is extremely convenient—proof that gig workers are meeting the demands of modern consumers. But beyond convenience, the gig economy offers numerous benefits to workers themselves, including:

• Flexibility and autonomy: Gig workers can set their own schedules and work from anywhere.
• Income diversification: Many Israelis use gig jobs to supplement their primary income.
• Rising demand: With an increasing reliance on ridesharing, food delivery, and freelance tech services, gig workers have more opportunities than ever.
• Accessible employment: Young professionals, students, and part-time job seekers find the gig economy especially attractive as it allows them to earn without committing to full-time employment.

Challenges faced by gig economy workers

However, it is equally important to acknowledge the hurdles that come with gig work:

• Insurance: A majority of gig workers are categorized as self-employed, which means their work is not covered under a labor code and therefore no health insurance, vacation time, or even retirement benefits are given.
• Financial instability: Since gig income can fluctuate, workers often struggle with budgeting and securing loans or mortgages.
• Legal and regulatory challenges: Israel’s labor laws are still adapting to the gig economy, creating uncertainty around workers’ rights and protections.

Moreover, drivers for rideshare services in Israel have been accused of not making sure their passengers are safe during the ride. Lawsuits have been filed in response to reports claiming sexual harassment and assault, with victims of sexual assault being awarded sums from $10,000 to $500,000. This illustrates the legal consequences that rideshare companies face for not adhering to safety measures.

Regulatory landscape in Israel

Israel’s government is trying to formulate more comprehensive laws related to the protection of gig workers. Some of the ongoing efforts include:

• Legal classification: Establishing the nature of the relationship between gig workers and the employers as employees or as self-employed.
• Labor protections: Management of a resource-based minimum and safety net provisions in health and other areas for the gig workforce.
• Industry-specific regulations: The Ministry of Labor is reviewing strategies aimed at ensuring adequate remuneration and decent working conditions for errand boys and girls, particularly in the transport and delivery industries.

When compared to other countries, Israel is still in the early stages of regulating the gig economy. Spain and the UK are more advanced than the rest of Europe because they are more aggressive in designating certain gig employees’ status, while the rest of the US is still grappling with independent contractor employment boundaries.

The future of gig economy jobs in Israel

In the future, possibly due to the growing demand for urban mobility, the expectation is that Israel’s gig economy will open up in ridesharing, transportation, as well as in technology, online marketplaces, AI-powered freelance opportunities, and government policy that could assist with the increasing benefits and security for gig workers.

With the increasing ability of AI and automation, new kinds of gig work will likely emerge and shift the world of work. If the Israeli government successfully balances innovation with worker protection, the gig economy could offer sustainable and secure employment opportunities.

Conclusion

New forms of work based on the gig economy are emerging in Israel. These are relatively new in the country and come with their own unique advantages and challenges. Although flexible employment gives people control over how much they earn, the absence of adequate legal and social protection is worrying. While the government continues to adjust its policies, it is important to ensure that innovation is not stifled while ensuring that gig workers are treated fairly.