What Is The Gig Economy?

The gig economy is  a labour marketplace that consists of contractors and freelancers who work on a short-term basis for multiple clients at a time. They provide their skills and services based on contracts and get paid for them. Many industries, such as cleaning services, personal care services, household repairs, vehicle repairs, car or bike driving, food and other delivery services, retail, HR consulting, office, and other home services, employ gig workers.

The gig economy paves the way for a global economic revolution. Digital labour platforms connect skilled workers with employers. It benefits all the stakeholders with an adaptable and flexible work environment. At the same time, it has its own challenges as it upsets traditional relationships between businesses, clients, and workers. Even when then there was global recession, the COVID-19 pandemic didn’t hinder the growth of the gig economy.

Gig Workers In India

According to recent reports, the gig workforce is expected to increase by 2025 with an addition of 9-11 million gig workers. More than 58% of employers showed interest in hiring the gig workforce. Surprisingly, the young generation of India shows more interest in taking up short-term contract jobs. 

The Taskmo report shows that 40% of the gig workers belong to the age group of 16-23. In the last four years, the number of young workers in the gig economy increased by 8 times. Gig workers are employed in all types of high-skilled, medium-skilled, and low-skilled jobs in multiple industries. 

Why Is The Gig Economy’s Growth Important?

Everyone realised the potential of Gig economy during the worldwide COVID restrictions. When jobs can be done remotely and collaboration can be maintained through online communication, gig economy vastly improved. It opens up new opportunities for both businesses and workers. Businesses can eliminate the hassle of hiring and training employees as they can get jobs done on demand. Workers need not relocate or change their lifestyle for their career choices. 

Even though the gig economy is set for growth, workers suffer from limited access to jobs. Recent reports show that about 62% don’t have access to available gig jobs, 32% don’t know English to access the open positions, and 10% don’t learn the local language to get gig jobs suitable for them.  

India can benefit greatly from the economic transformation if proper support is provided. With digital infrastructure, a favourable population, and easy access to digital services, India can use the gig workforce to position itself as a global leader.

How Can The Government Help With Gig Growth?

The NITI Aayog report shows that by 2029-30, the gig workforce will have a 200% growth from the current 7.7 million. These short-term jobs were once seen as jobs for non-skilled workers. However, 22% of the gig workforce currently works in high-skilled jobs. The demand for high-skilled and low-skilled jobs continues to increase, but the need for medium-skilled jobs is decreasing. gig workers are presently employed in shared services, software, and other professional services.

Experts suggest the following recommendations to support the gig economy in India:

Platformization