by Anand S

It is a labour market characterised by the prevalence of short-term contracts or freelance work , as opposed to permanent jobs. Some say it is a working environment that offers flexibility on employment hours and some others complain that it is a form of exploitation with very little protection to workers.

Workers get paid for the gigs they do such as food delivery or a trip in a car. Jobs in this economy include couriers, drivers, and video producers. Supporters of this model claim that people can benefit from flexible hours, with control over how much time they can work as they attend to other priorities in their lives. Employers benefit too as they only pay these workers when a job is available, and don't incur costs such as fringe benefits and holiday pay as they do with regular employees. Workers in the gig economy are classified as independent contractors. A flexible workforce helps organizations manage costs well with the peaks and troughs of demand. It helps companies scale up when there is an opportunity for exponential growth and gives them access to specialist skills for one-time or occasional use.

Millions of workers have chosen to leave the relatively stable occupations with organizations to do these gigs. Some of this migration reflects the emergence of service platforms and ride-hailing that involve discrete tasks. Although many acknowledge experiencing personal, social, and economic anxieties without the cover and support of a traditional employer, they enjoyed the benefits that came with the independence. In the absence of a steady salary, paid sick leave, and other benefits, the chances of financial insecurity are much higher.

The concept of a gig economy is not new to India. A range of skilled personnel have for years offered their services based on word of mouth, referrals in the neighbourhood, and reputation in areas such as home improvement and construction. With a large working population of 500 million, India has to create jobs at a record pace to provide employment to the very large number of people who get added to the workforce every month. With the right impetus, the platform-based gig economy can generate millions of jobs in the future.

Young millennials may take to the gig economy more than any other generation because they want to live their dreams. They seek work that they want to do rather than have careers which may not satisfy their inner urges. They want to lead interesting lives, do not worry about the future and enjoy a better work-life balance. They are willing to give up financial security for living life on their terms. But for those who are not highly skilled, focused, and confident, it may be a dangerous place to be in. Unless a person is extremely talented, her bargaining power is limited. Workers in the gig economy will have to upgrade their skills at their own cost.

As the pandemic has disrupted many careers, employment in the gig economy is gaining ground with huge potential for both blue-collar and white-collars workers. The gig economy is expanding from less-skilled services to high-skilled jobs. While delivery workers have the biggest slice of the pie, the other profiles which are in demand include warehouse helpers and assembly line operators. In white-collar gigs, designers, content writers, and digital marketers are in demand as e-commerce sites have increased their activity.

Some experts want the government to offer a reasonable amount of social security to gig workers as well as protection under employment laws while retaining the flexible nature of the gig work arrangement.