In recent years, the gig economy and platform jobs have been gaining popularity while customising the experience of work for an increasing number of people. It offers flexibility and independence for workers. At the same time, it is proving to be a cost-effective solution for businesses.
- A gig economy is essentially based on flexible, temporary, or freelance jobs. It exclusively operates through the Internet.
- It covers a wide range of activities across sectors ranging from delivering food to driving for Uber and even writing code or freelance articles.
- The number of gig workers in India by 2029-30s is expected to grow to nearly 2.35 crore.
- On the back of technological developments in various production fields, the gig economy will continue to flourish.
Despite the lack of job security and benefits for gig economy workers, the gig economy in India is expected to continue to grow in the future.
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The favourable demographic structure and the rapid proliferation of digital technologies in India have enabled companies across sectors to offer various forms of gig jobs that aim to extend convenient services to their customers. Millions of gig workers in India are employed in various sectors including retail, fin-tech, and ed-tech.
Riding on the back of rapid urbanisation, widespread adoption of smartphones and associated technology, India has already emerged as one of the largest countries in the world for gig and platform work (i.e. flexi-staffing), according to Economic Survey 2020-21. To add a cherry on the cake, increasing e-commerce platforms have further driven the growth of the gig economy in the country.
What is Gig Economy?
Gig economy refers to a labour market that consists of temporary and part-time jobs filled by independent contractors and freelancers rather than full-time permanent employees. According to the UK government, “gig economy involves the exchange of labour for money between individuals or companies via digital platforms that actively facilitate matching between providers and customers, on a short-term and payment-by-task basis.”
In simpler words, it is based on flexible, temporary, or freelance jobs that often involve engaging with clients or customers through an online platform. The workers, businesses, and consumers together benefit, by making work more adaptable to instant/short-term needs and the demand for flexible lifestyles. It facilitates independent contracting work, with many of them not requiring a freelancer to come to an office.
Gig workers are usually part-time workers and may work from home as well.
Status of Gig Economy in India
The gig economy is transforming not only the ways of doing business but also the way we work, live and move. The increasing adoption of digital technologies has made the workforce more mobile, with the freedom to work anywhere.
In 2020-21, there were about 77 lakh (7.7 million) gig workers in India. They constituted 2.6% of the non-agricultural workforce i.e. 1.5% of the total workforce in the country. The number of gig workers in the country is expected to increase to about 2.35 crore (23.5 million) workers by 2029-30. They are expected to constitute 6.7% of the non-agricultural workforce or 4.1% of the total workforce by 2029-30, in India.
According to an ASSOCHAM report, by 2024, the Indian gig economy is expected to be at US$ 455 billion, growing at a compound annual growth rate (CAGR) of 17%.
A report recently released by Taskmo (an on-demand staffing platform) noted that there has been a 55% growth in gig workers’ participation in the workforce, as compared to last year. The growing gig job opportunities which have increased from 40 million to about 200 million, within a year have been the major factor behind the rising gig workers’ participation. Some of the major emerging job opportunities included last-mile delivery executive roles, pickers, packers, sorters, customer support, field sales executives and quick commerce sectors.
Mr. Prashant Janadri, Co-founder, Taskmo said, “As the concept of the gig is finding wide acceptance, there is a surge in participation of youth, who are preferring to take up gig job roles….Younger generations are also more open to exploring varied opportunities. It’s good that they do not want to limit themselves to work that comes with boundaries.”
However, it has been observed that hiring activity is declining in tier 1 markets. On the other hand, 28% growth in hiring was seen in tier 2 cities. Similarly, the tier 3 market registered a growth in hiring of nearly 23%. Consequently, the trend of hyper-local recruitment is rising in tier 2 and tier 3 cities.
Where Bhopal witnessed a 35% increase in demand for gig workers, the city of Mysore accounted for a 28.4% growth in demand. Vadodara saw an increase of about 24% in the hiring of gig workers followed by Pune (18%) and Coimbatore (14.5%). The key sectors that are driving the demand for gig workers are e-commerce, quick commerce, fin-tech and FMCG.
Future of the Gig Economy
A gig economy provides workers with the opportunity to rise above the limitations of work time and workspace. But there also exist some possible challenges for gig workers. They may lack access to benefits like healthcare, retirement savings, and paid time off. There may also be the absence of legal protection and they could often be paid lower wages than their traditional employees. The lack of worker protections and labour laws in the gig economy has necessitated some relative reforms.
Various studies have shown that the majority of individuals who work in the gig economy are more satisfied than when they were working traditional jobs. Technological possibilities/developments in various production fields are playing a crucial role in the further expansion and growth of the gig economy. Hence, despite the emerging challenges, the gig economy is expected to continue thriving.
