Gig Economy

Gig economy refers to a labour market where occupations are temporary contracts or freelance work rather than full-time employment.

A “gig” is any task or assignment that a worker accepts, whether it be a one-time project or a long-term contract with numerous clients.

Digital platforms and apps that link employees with customers or clients who use their services frequently make this type of employment easier.

Instead of working for one company for an extended length of time, workers in the gig economy frequently take on a variety of short-term tasks, or “gigs.”

Driving for ride-sharing services like Uber, delivering food for businesses like Zomato, or doing freelance work like graphic design, modelling, counselling or writing articles are examples of gig economy jobs.

Gig Economy: India’s Scope

NITI Aayog estimates India has 7.7 million gig workers, which it expects will swell to 23.5 million by 2029-30.

India has enormous potential for the gig economy because of the country’s large population, high smartphone access, and expanding digital economy.

One of the main benefits of the gig economy in India is that it provides millions of people who are unable to find full-time employment with flexible work alternatives.

The gig economy has the potential to generate millions of new jobs and significantly strengthen the national economy.

During COVID-19, in year 2020, as customers were more confined to their homes and those whose occupations had been terminated turned to contract and part-time work for cash, the gig economy saw tremendous growth.

Gig Economy: Factors

Access to Technology:

• Due to the widespread use of smartphones and other digital devices, it is now simpler to link independent contractors with prospective clients or customers.
• Workers can locate gigs and clients can access their services using digital platforms and apps like Uber, Zomato and Airbnb.

Flexibility:

• The flexibility that the gig economy provides its employees is one of its key appeals. They can select their hours and locations, and they can frequently juggle work with other responsibilities like family and education.
• They can also earn way more than a traditional employment due to the ability to take on multiple gigs and higher pay.

Globalisation:

• Foreign Job opportunities have always been charming to people. The increase in globalisation has given gig workers the chance to work with clients or customers from around the world.

Developing skills and abilities:

• Gig employment gives employees the chance to acquire a variety of skills and expertise in a variety of sectors or businesses. By doing this, they can improve their resume and enhance their careers. Business can also hire skilled people on project basis than full-employment.

Gen-Z:

• In contrast to the usual 9–5 job, younger generations (specifically Gen-Z) are increasingly looking for more flexible and meaningful work arrangements.

E-commerce expansion:

• Due to world as well as India’s explosive e-commerce development, there is now a substantial need for delivery and logistics services.

Gig Economy: Challenges

Job insecurity:

• Gig workers do not enjoy the same level of job security as regular employees. They frequently lack the right to benefits like health insurance, paid time off, or retirement plans, and they are not promised a salary.

Income Instability:

• Gig workers sometimes have erratic income streams that can change from weekly or monthly. So it is very challenging to plan and budget their money as a result.

Exploitation:

• Gig workers are frequently categorised as independent contractors rather than employees, they are exempt from labour laws that shield workers from discrimination or exploitation.
• Lack of regulatory frameworks, workers protection, basic rights and fair pay, needs to be addressed.

Digital platform dependence:

• Gig workers rely on digital websites and applications to look for employment and connect with clients or customers.
• The capacity of gig workers to acquire employment or generate money may be significantly impacted if these platforms changes their policies or algorithmic processes.
• Also internet services and smartphones are expensive for a lot of population and therefore accesing digital technology is hard for some.

Gig Economy: A Way Ahead

Regulations:

• The rights and protections of gig workers are likely to be more actively regulated as the gig economy continues to expand.
• This might entail taking steps to guarantee that gig workers receive the minimum wage, benefits, and job stability. 

Technology boost:

• New platforms and technologies that support gig employment will keep developing as the gig economy expands.
• For gig workers, these platforms can present new opportunities, but they also might present new risks and concerns.

Social Security:

• There could be a rise in demand for social security programmes like healthcare, retirement, and unemployment benefits as more people use gig labour as their main source of income.

Education and Training:

• Workers may need to make greater investments in their skill development and reputation building as the gig economy expands in order to compete for work.
• The demand for adaptable and accessible learning solutions may rise as a result, creating new opportunities for education and training providers.

Women Empowerment:

• Women may have new options to participate in the workforce and make money thanks to the gig economy.
• Some gig jobs, like caregiving, tutoring, freelancing, and online modelling, may be especially well suited for women in countries like India where the majority of women stay at home to care for their families and children.