While the world battles with the pandemic and the economy seem to be slowing down, the gig economy emerges as a silver lining for job seekers, and other workers. India before the pandemic defined “work” with certain definitions and parameters. For example, white-collar jobs (workers working in an office), or blue-collar jobs (workers performing manual labor). Owing to the pandemic, as the business re-evaluate their strategies, it is expected that the gig economy will turn out to be mainstream. Doubtful concerns revolving around the dependability and long-term viability of a gig workforce seem to dispel with the pandemic-induced lockdown. The uncertainty in the market caused companies to let go of some of their staff, and instead hire gig workers. Needless to say, the term and meaning of “gig” is not a creation of the pandemic but has been in the market for a while now.
A gig economy includes a short-term contract, a temporary contractual job, or freelance work that a person can opt for, and the payment is done as soon as the task is completed. As the digital age takes over the world, it is considered to be the major driver for the growth of the gig economy. Since work from home has become a new trend, job seekers consider taking up different tasks as they aren’t hired permanently. The amount paid to them depends upon the work done, hence there is no compromise made on the salary provided. On one hand, businesses benefit as they save overhead costs on office space, and enjoy greater recruitment flexibility. On another hand, workers benefit from the flexible hours of work, enhancing income by doing multiple gigs, and choice of work. The gig economy will serve as a platform to drive job creation and economic growth.
The expansion of the gig economy is observed in almost all the sectors, however, the sectors where the majority of the gig workers seek job opportunities are construction, manufacturing, transportation, logistics, and personal services. It has been estimated that in the short and medium-term, almost 24 million jobs in skilled, semi-skilled, and shared services roles could be provided by the gig economy. With the advent of technology platforms like Zomato, Swiggy, Ola, Uber, the gig economy has received the much-needed push. The adoption of e-commerce and platform-enabled services has considerably spurred the growth of this economy, which has further provided a path for India to emerge as one of the largest markets for flexible staffing. While there are around 3 million gig workers, as compared to India’s 500 million workers, the upside of this is that an estimated 56% of new employment is delivered by the gig world. A major source of employment for casual workers in India is its large informal sector, however, the infusion of technology to deliver on-demand services has gained momentum in recent years.
A report by consulting firm Boston Consulting Group, and Michael & Susan Dell foundation says that over the next 3-4 years, India is all set to triple its gig economy, providing 24 million jobs in the non-firm sector, and the number of gig jobs is expected to hit 90 million in 8-10 years. This will further contribute towards India’s GDP with an estimated increase of 1.25%. The emergence of the gig economy will engage the women workforce since they will be offered the flexibility of work and time. Despite the soaring numbers, the gig economy is still at its evolving stage, facing numerous risks and challenges. Inadequate employment rights including minimum wages, health benefits, sick leaves are major concerns of the workforce. Although this is now considered under the ambit of the Code on Social Security 2020, which will provide them with social security benefits. There is a potential chance of the blue and white-collar jobs finding themselves inefficient and redundant. While considering this, it is important to ensure regular upskilling of the workforce via vocational training.
The gig economy has replaced the concept of full-time employment. The future of work has evolved more than ever in this hyper-connected world. The fast-moving technological developments and frequent adaptation to changes have brought in a new era of employment, where the traditional methods are no more considered feasible. The requirement of 9-to-5 working hours is fading away, with individuals preferring more flexibility, and trying to balance multiple things. This significant change in the employment method is attributed to millennials. While they expect more simplicity, comfort, and direct objectives, they are distinguished by a way of revolutionizing work, breaking processes, and rejecting protocols. This method of employment helps the job seekers to pursue their passion, as well as sustain themselves financially. However, yet, you may never know when an opportunity will knock at your door. There could be times when you are flooded by opportunities, and times when there is no confirmation if you will be getting the work opportunity.
Young talent seeks more flexibility concerning their skills, time, and work. In a nutshell, the potential of the gig economy in India is huge, and the flexi-work path will go a long way if accompanied by government regulations, and compliance. Despite the pandemic, the movement towards the gig economy would happen. Pandemic has only accelerated the trend, and provided workers with a wide range of opportunities, and lessened the burden of employers. Work from home, and remote working has served as an example of how India’s workforce can efficiently utilize their skills in any scenario and has raised our expectations. Certainly, the gig workers will assume a strong place in the future workforce system.