The rise of the gig economy has transformed traditional labour markets, introducing new forms of employment characterized by flexibility, autonomy, and digital platform mediation. While this shift has created opportunities for income generation and entrepreneurial work, it has also given rise to significant economic uncertainty and instability. This paper explores the dual nature of the gig economy, analyzing its impact on economic stability from both individual and macroeconomic perspectives. Drawing on existing literature, empirical data, and case studies, the research highlights key challenges such as income volatility, lack of social security, regulatory gaps, and mental health implications. The paper also examines policy responses and proposes recommendations to ensure a more inclusive and secure gig economy that balances innovation with worker protection.