Digital era workforce

The NITI Aayog's latest report on the growth of the gig and platform economy in India has uncovered new realities of employment and livelihood scenarios in the country. The report has projected that the gig workforce is expected to expand from the current strength of about 77 lakhs to 2.35 crore workers by 2029-30 which indicates the growing demand for workers outside the "employer-employee relationship". The report titled "India's Booming Gig and Platform Economy" highlights that at present about 47% of the gig work is in medium-skilled jobs, about 22% in high-skilled jobs, and about 31% in low-skilled jobs. From engaging in app-based work of driving cabs or bike-taxis for taxi aggregators to delivering orders for restaurant aggregators and food delivery companies, and grocery aggregators, to delivering orders to e-commerce companies for online shoppers, the number of these gig workers is rapidly growing as the platform-based economy grows. The Code on Social Security 2020 notified by the Ministry of Law and Justice defines a "gig worker" as a person who performs work or participates in a work arrangement and earns from such activities outside of the traditional employer-employee relationship and "platform work" means a work arrangement outside of this relationship in which organizations or individuals use an online platform to access other organizations or individuals to solve specific problems or to provide specific services in exchange for payment. The increasing preference for digital payment systems by consumers is also a key driver of the platform-based economy. The Reserve Bank of India data show that there has been an increase of more than 500% in merchants accepting digital modes of payments during the first six months of 2021-22 as compared to the last six months of 2019-20. The Payment Vision 2025 released by the RBI facilitates "E-payments for Everyone, Everywhere, every time" which is set to make online shopping, and digital payments more popular in the country. The NITI Aayog's study attributes the growth of the gig and platform economy in the country to the rapid growth of the digital economy and flexibility of work time and workspace of platform for gig workers. It estimates that the gig workers are expected to form 6.7% of the non-agricultural workforce or 4.1% of the total livelihood in India by 2029-30. Some of the key findings of the study listed by the NITI Aayog are: gig and platform sector has low-entry barriers and hence holds enormous potential for job creation in India, around 300 cities of varying sizes are serviced by various platforms operating across sectors like ride-hailing, home-based services, food/ grocery/ medicine delivery, logistics and e-commerce, the sector offers better income opportunities to those previously engaged in similar non-platform jobs and the concentration of workers in medium skills is gradually declining and that of the low-skilled and high-skilled job is increasing. The report states that gig workers are comparatively young, work for fewer hours a day on gig work, prefer a flexible work schedule, typically with low to the middle level of education and income through gig work is not their primary source of income and they are often holding another regular job. The study found that students looking for partial income with flexible schedules form part of the gig workforce in India. It listed 15 industries – as enumerated in the National Industrial Classification – as having the largest concentration of platform workers and have the potential to unlock growth in gig and platform work. These industries include manufacturing, electricity, water supply, construction, retail trade, transport and storage, accommodation and food services, information and communication, financial and insurance services, real estate, administration, educational support, residential care, and repair of computers and personal and household goods. The challenges identified in the report are: access to internet services and digital technology can be a restrictive factor for workers willing to take up jobs in the gig and platform sector, lack of job security, irregularity of wages, and uncertain employment status for workers, the uncertainty associated with regularity in the available work and income may lead to increased stress and pressure for workers and platform workers cannot access many of the workplace protections and entitlements. "Studies have also reported that workers engaged in remunerative activities with digital platforms may face stress due to pressures resulting from algorithmic management practices and performance evaluation based on ratings," adds the report. Based on the study findings the NITI Aayog recommends that India requires a framework that balances the flexibility offered by platforms while also ensuring the social security of workers. It insists that measures for paid sick leave, health access and insurance may be adopted by platforms as a part of their workplace or work-engagement policies for all the workers they engage for offering social security cover to platform workers. Ensuring social security cover for gig workers as promised in Code on Social Security is critical for the stability of the country's gig economy.