Gig economy
An ecosystem in which Individuals provide services and goods through various
online platforms, and enterprises can use new employment models to reduce
personnel and transaction costs and to find suitable candidates more easily is
called as the Gig economy. The world is entering a declining birthrate and an
aging society, coupled with changes in the demographic structure, driving the
gradual rise of the gig economy. The gig economy means an economic model in
which self-employed people make a living by taking on short-term jobs. Each
job is referred to as gig work and is dominated by short-term contracts or
freelance work on a case-by-case basis.
This type of work has grown in popularity in recent years as it offers more
flexibility and independence for workers, and can be a cost-effective solution
for businesses.
A Niti Aayog study on “India’s Booming Gig and Platform Economy” has
estimated that in 2020-21, 77 lakh (7.7 million) workers were engaged in the gig
economy. According to the report, the gig workforce is expected to expand to
2.35 crore (23.5 million) workers by 2029-30. At present, about 47% of the gig
work is in medium-skilled jobs, about 22% in high-skilled, and about 31% in
low-skilled jobs. The trend shows the concentration of workers in medium skills
is gradually declining and that of the low skilled and high skilled is increasing. It
may be expected that while the domination of medium skills will continue till
2030, gig work with other skills will emerge.The widespread adoption of
smartphones and the availability of Hugh speed internet has made it easier for
workers and businesses to connect through online platforms, facilitating the
growth of the gig economy.
The gig economy is particularly attractive for Indian workers who are looking for
flexible work arrangements that allow them to balance their personal and
professional lives.
Its also great for ambitious Indians who are seeking to improve their livelihoods
with side income generation.
While everything looks rosy until now, there are also some serious issues
plaguing the gig economy
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Many gig workers in India are not covered by labour codes and do not
have access to benefits such as health insurance and retirement
plans.
Gig workers in India are often paid less than traditional employees
and may not have the same legal protections.
There is a lack of data and research on the gig economy in India
which makes it difficult for policy makers to understand its size,
scope, and impact on the economy and workforce.
So what is the way forward then?;Clear Regulations: The Indian government
should establish clear regulations and policies for the gig economy to
ensure that gig workers are protected and that companies are held
accountable. The government can encourage innovation in the gig economy
by providing tax incentives, funding and other support to companies that are
creating new business models and technologies. There is a need to build the
right physical and social infrastructure that supports the engagement of
women in the gig workforce.
The rise of the gig economy greatly benefits the new generation of employees,
providing new job opportunities and multiple sources of income.
To summarize,the majority gig workforce constitutes millennials and Gen Z, who
anytime will choose gig work over a more traditional full-time office
environment, and employers are therefore trying to respond to those changing
needs and appetites.