The Gig economy

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Gig economy is a labor market characterized by short-term and freelance work arrangements. People in such economies are often referred to as “gig labor” or “independent contractors,” who work or provide services on a project-by-project basis. Unlike traditional full-time employment, gig workers are not tied to long-term contracts, and are free to choose when, where, and how much they work. The gig economy is driven by digital platforms and online marketplaces that connect gig workers with customers looking for specific services. These platforms work as brokers. Facilitate transactions between buyers and sellers. Some of the most popular gig economy platforms include Uber, Lyft, Airbnb, Upwork, Fiverr, and TaskRabbit.

For example, in the transportation sector, ride-hailing companies like Uber and Lyft allow people to sign up as drivers and use their own vehicles to provide transportation services to passengers on an on-demand basis. Are. Similarly, freelance platforms like Upwork and Fiverr help businesses find jobs for talented professionals in graphic design, writing, programming, and other tasks.

How does the gig economy work?

Flexibility

Gig workers have the freedom to set their own schedules, allowing them to balance work and personal commitments.

Diverse Opportunity

Gig economy brings opportunities for different types of experts. So that they can monetize their talent on their own terms.

Cost efficiency

Companies can reduce costs by hiring freelancers for special projects, avoiding the expenses associated with full-time employment.

The biggest example of gig economy

One of the most prominent examples of the gig economy is the ride-hailing industry, with companies like Uber and Lyft revolutionizing the transportation sector. These platforms are disrupting the traditional taxi industry by offering more convenient, tech-operated options.

What is India’s role in the gig economy?

India has emerged rapidly in the global gig economy. With its large population, higher smartphone penetration and increasing internet connectivity, the country has seen huge growth in the gig workforce. Several factors contribute to India’s prominence in the gig economy:

Technology and Digital Basic Infrastructure

India’s strong digital basic infrastructure and widespread smartphone availability have facilitated rapid adoption of gig platforms.

Employment opportunities

The gig economy has provided opportunities for many Indians to participate in the workforce. Especially in sectors like ride-hailing, food delivery and freelance services. It is noteworthy that the gig economy has become a special part of the global labor market, which presents both opportunities and challenges for workers and businesses alike. With its flexibility and potential for growth, the gig economy will continue to shape the future of work around the world. As technology and connectivity improve.

Youth workforce

India boasts of a large and skilled youth workforce, making it an attractive market for gig platforms looking for diverse talent.

Spirit of entrepreneurship

Many individuals in India are turning to gig work as a means of entrepreneurship, leveraging their skills to start small businesses or freelancing careers.

The need to provide mandatory coverage to platform workers:

  • While the recognition of gig workers in the Labor Code is promising on a positive note, the terms of their social security are not stipulated without any regulatory authority.
  • Thus, there is a need to provide mandatory coverage to platform workers under centrally sponsored schemes like Pradhan Mantri Jan Arogya Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana.

What is the potential of India’s gig sector?

An estimated 56% of new jobs in India are being created by gig economy companies in both blue-collar and white-collar workforce. While the gig economy is prevalent in India for blue-collar jobs, demand for gig workers in white-collar jobs such as project-specific consultants, salespeople, web designers, content writers and software developers is also emerging.

Perpetuates pre-existing problems in the labor market:

The gig economy poses serious barriers to entry for women to participate because it perpetuates pre-existing labor market problems such as the gender pay gap, biased algorithms, gender stereotyping, and the digital divide. This makes it essential to identify and address these underlying structural issues in the digital ecosystem. The digital divide between men and women is a serious barrier to women’s participation in gig work. According to the GSMA Mobile Gender Gap Report 2020, only 21% of women in India are mobile internet users, creating unequal access to the digital technologies needed to engage in the platform economy.

Although there is no comprehensive database available on gig workers in the country, it has been observed that there is occupational segregation based on gender stereotypes on the platform.

Conclusion-

The style of working is changing in the digital age. The way technology has gained dominance in every field. Similarly, there have been many changes in the style of working. It is the result of new technology that a new word has come before us today. Which is called Gig Economy. This term may seem a little new to you, but the way work is done in this genre is nothing new, it used to happen in earlier times also. What is currently being called the gig economy has also previously been called the freelance economy, quick work or temporary work.

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