July 2025
As technology continues to evolve, Australians can now access services, food delivery, or professional expertise at the touch of a button. The rise of this digital economy has fuelled the rapid growth of the gig economy, with more than 250,000 Australians working in gig roles—either as their primary income source or as a side hustle to supplement their earnings [1].
The gig economy has reshaped the modern workforce, offering flexibility, independence, and the promise of work-life balance. However, beneath the surface, many gig workers face significant workplace mental health challenges, including job insecurity, financial stress, lack of benefits, and social isolation. Without the protections and entitlements of traditional employment gig workers often experience heightened stress, anxiety, and burnout, with no paid annual leave on the horizon to soften the blow.
With the gig economy contributing an estimated $6.3 billion to the Australian economy [2], the question remains: how can gig workers protect their mental well-being and create sustainable working conditions?
The first step is knowing the risks.
Job Insecurity and Financial Stress
One of the most pressing concerns for gig workers is job insecurity. Unlike traditional employees with stable paychecks, gig workers experience unpredictable income streams that fluctuate based on market demand, platform algorithms, and client needs.
This financial instability contributes to chronic stress, a key driver of anxiety and depression. Studies show that Australian gig workers experience higher stress levels than their traditionally employed counterparts [3]. The continuous need to hustle for the next job often leads to cycle of burnout, with workers struggling to maintain a steady income while sacrificing their well-being.
Additionally, gig workers miss out on employer-mandated superannuation contributions. Research indicates that less than 1.5% of gig workers make voluntary superannuation contributions, leading to long-term financial insecurity [2]. This financial strain can exacerbate feelings of helplessness and stress, making workplace mental health initiatives critical in supporting independent workers.
Lack of Benefits and Support
Traditional employment comes with built-in protections such as paid sick leave, health insurance, and retirement contributions—benefits that most gig workers lack. Without these safety nets, many gig workers delay seeking medical or mental health care due to cost concerns, often working through illness or personal struggles.
Employer-provided mental health resources, such as Employee Assistance Programs (EAPs), are also out of reach for gig workers. A recent Canadian study highlighted that many gig workers feel powerless, with financial strain directly contributing to increased stress and mental health issues [4].
Isolation and Loneliness
Gig work is often solitary, particularly for freelancers and remote workers who may go days without face-to-face interaction. Unlike traditional workplaces where colleagues provide social support, gig workers frequently operate alone, increasing their risk of loneliness.
Loneliness is a significant factor in poor mental health and has been linked to increased anxiety and depression. Without workplace camaraderie, gig workers may struggle with motivation and emotional well-being. Creating a strong support network is essential to fostering connection and reducing workplace mental health risks.
Managing Mental Health in the Gig Economy
Despite these challenges, gig workers can take proactive steps to protect their mental well-being:
- Financial Planning: Setting a budget, building emergency savings, and diversifying income streams can help reduce financial stress.
- Building a Support Network: Engaging with online communities, coworking spaces, or industry groups can provide connection and emotional support.
- Prioritising Self-Care: Establishing work-life boundaries, taking regular breaks, and practicing mindfulness can help manage stress and prevent burnout.
- Accessing Professional Support: Exploring affordable mental health resources, such as online therapy or community programs, can provide essential support.
Conclusion
While the gig economy offers independence and flexibility, it also presents significant mental health risks. Addressing these challenges requires both individual strategies and broader systemic changes, including improved protections for gig workers. By prioritising workplace mental health and advocating for better support structures, Australia can create a healthier and more sustainable future for independent
[1] The rise of the gig economy and its impact on the Australian workforce, Actuaries Institute, 2020.
[2] Modern work: how changes to the way we work are impacting Australians’ mental health, Black Dog Institute, 2021.
[3] Stress and the gig economy, J-STAGE, 2022.
[4] Über-Alienated: Powerless and Alone in the Gig Economy, 2021.