The Gig Academy: How Universities Are Adopting the Labor Model They Once Criticized

By Jason Yao Jun. 26, 2025

Higher education has quietly become the next frontier of precarious work. Once bastions of intellectual stability, universities now function as gig economies for scholars. The American Association of University Professors (AAUP) reports that over 73 percent of U.S. faculty are contingent—adjuncts, lecturers, or part-time instructors without tenure. In Europe, non-permanent contracts constitute 57 percent of academic employment. The system designed to produce knowledge is now reproducing insecurity.

From Tenure to Turnover

Tenure once guaranteed academic freedom. Today, it guarantees rarity. Budget austerity and enrollment volatility have turned universities into flexible employers. Between 2005 and 2024, average adjunct pay in the U.S. rose only 12 percent, reaching US$3,900 per course, while tuition climbed 78 percent.

Universities treat scholars like subscription services: renew each semester, cancel anytime. The structural irony is profound—institutions that critique neoliberalism operate on its most exploitative labor model.

Administrative Bloat and Financialization

Administrative expansion offsets academic contraction. A Chronicle of Higher Education analysis shows that administrative staff per student increased 41 percent since 2000, while faculty ratios declined 20 percent. Universities now resemble holding companies managing real estate, online programs, and financial portfolios.

Endowments reinforce inequality. The National Bureau of Economic Research (NBER) found that the top 20 U.S. universities control 52 percent of total endowment wealth. These institutions employ fewer adjuncts proportionally yet shape national norms for compensation. The result is a two-tier academy: elite institutions of abundance, and mass universities of austerity.

The Online Education Paradox

The rise of online programs—accelerated by COVID-19—was meant to democratize access. Instead, it outsourced teaching. Universities partner with Online Program Managers (OPMs) like 2U and Coursera, which take up to 65 percent of tuition revenue while hiring instructors as independent contractors.

A 2024 Inside Higher Ed survey found that 62 percent of online adjuncts receive no benefits or research funding. Meanwhile, OPM revenues exceeded US$14 billion globally, with profit margins averaging 25 percent. Education’s digital future, it seems, belongs to shareholders, not scholars.

Academic Freedom at Risk

Precarity erodes speech. Non-tenured faculty are less likely to publish controversial work or criticize administration. A British Academy study (2024) found that 48 percent of contingent scholars self-censor for job security. When academic freedom depends on contract renewal, inquiry becomes compliance.

Restoring Stability in Knowledge Economies

Policy reform must treat academic labor as a public good. Governments can tie funding to employment ratios, as in Finland’s University Collective Agreement, which mandates minimum permanent-staff thresholds. U.S. states could condition public funding on transparency in adjunct compensation.

Universities must reclaim their civic mission. The next academic renaissance will depend not on digital reach, but on labor dignity. Knowledge cannot thrive on temporary contracts.

Works Cited

“Contingent Faculty Report.” American Association of University Professors (AAUP), 2024. https://aaup.org

 “Academic Employment Trends in Europe.” European University Association (EUA), 2024. https://eua.eu

 “Administrative Staffing Data.” Chronicle of Higher Education, 2023. https://chronicle.com

 “University Endowment Inequality.” National Bureau of Economic Research (NBER), 2024. https://nber.org

 “OPM Revenue Report 2024.” HolonIQ Global Education Data, 2024. https://holoniq.com

 “Inside Higher Ed Faculty Survey.” Inside Higher Ed, 2024. https://insidehighered.com

 “Academic Freedom and Precarity Study.” British Academy, 2024. https://thebritishacademy.ac.uk

 “University Collective Agreement.” Finnish Ministry of Education and Culture, 2024. https://minedu.fi

 “Tuition Trends 2005–2024.” College Board Annual Review, 2024. https://collegeboard.org

 “Global Higher Education Labor Analysis.” OECD Education at a Glance 2024, 2024. https://oecd.org