<p>Gig economy, characterized by its flexible and fragmented work patterns, has profoundly transformed traditional labor market by introducing novel forms of work and reshaping employment structures and ways of job fulfillment. Using data from the China General Social Survey (2015–2021), this study employs a Probit model to analyze the impact of gig economy development on individual employment. The results indicate that the gig economy development has a significant negative impact on the employment of working-age individuals, while medium education and substantial work experience can mitigate this negative effect. Furthermore, the study identifies the pivotal mechanism through which the gig economy influences the employment of working-age individuals, namely, the decrease in workers’ bargaining power. In contrast, the gig economy development positively impacts the employment of elderly workers, primarily due to their labor characteristics and accumulated work experience, which align well with the demand of gig market. Moreover, the study reveals that the value of formal and traditional education diminishes, while work experience becomes a more critical determinant of labor market success in gig economy. These findings offer important insights into the dynamics of the gig economy development and its implications for employment, serving as a valuable reference for corporate strategy and public policy formulation.</p>