GIG economy: The need of the hour

Dr. Jinti Sharma

(Assistant Professor, School of Commerce & Business Management, Pragjyotishpur University)

Change is the only constant, as stated by Heraclitus. This timeless observation draws our attention to the dynamic nature of society. There was a time when people strictly adhered to societal norms, but today, society has become more accommodating and open to change. Factors such as education, exposure, experience, and influence play significant roles in motivating people to embrace this dynamism.

Not only has society evolved, but the economy has also undergone a sea change in recent years. The technological revolution has impacted almost every economy worldwide. While developed economies like the United States have adapted well to technological advancements, countries like India continue to face challenges in this area. One reason technology poses a challenge in India is the unique land-to-population ratio. With a burgeoning population of 1.4 billion, India grapples with the escalating problem of unemployment. Although technology has enabled India to compete with more advanced countries, our population size necessitates the exploration of new avenues for employment.

To some extent, medium and small-scale industries, along with micro and tiny enterprises, have helped address unemployment. However, these efforts are insufficient given the sheer size of India’s population. At this juncture, a parallel avenue for employment emerged: freelancing. This trend was driven by individuals with vision, risk-taking capacity, and entrepreneurial spirit. The announcement of the Atmanirbhar Bharat Abhiyan (Self-Reliant India) on May 12, 2020, by the Hon’ble Prime Minister of India, Shri Narendra Modi, generated hope among the masses for self-employment. However, entrepreneurship demands qualities such as leadership, adaptability, risk-taking ability, passion, perseverance, and access to funding. Cultural, educational, social, and economic backgrounds also influence people’s personalities and thought processes.

India, being a land of diversity, sees its people differ in their views on employment. One segment of the population advocates higher education and white-collar jobs, while another prioritises skill enhancement, innovation, and creativity over traditional employment. For the first group, the failure to secure a suitable salaried job often leads to unemployment. A rigid mindset can make it difficult to explore alternative income sources or embrace entrepreneurship.

In this context, the concept of gig workers has emerged. Originally, the term “gig” referred to temporary freelance jobs in music or dance. Today, gigs are non-standard work arrangements where workers are hired on a temporary basis to complete specific tasks or for a set period. These workers include part-time hires, independent contractors, freelancers, temporary staff, and project-based workers. Many gig workers now make a full-time living through flexible and independent routines, often acquiring projects via digital platforms.

Gig workers are visible in various sectors, such as drivers for Uber, Ola, and Rapido; food delivery personnel for Zomato and Swiggy; and delivery staff for e-commerce giants like Amazon, Flipkart, and Myntra. These are known as platform gig workers, while construction workers and domestic staff are examples of non-platform gig workers. The flexibility and diversity of the gig sector provide opportunities for workers to enhance their skills and income while balancing personal and professional lives. Employers also benefit, as they can meet specific organisational needs without the commitment of permanent hires, accessing a cost-efficient workforce as required.

Although the term is relatively new, the gig economy has disrupted the traditional labour market globally over the past two decades. Until the early 2000s, India primarily relied on traditional employment, with limited digital platforms. The mid-2000s saw the rise of IT industries, call centres, and BPOs, introducing the concept of distant, contract-based work. The outbreak of the COVID-19 pandemic in 2019 led to explosive growth in the gig sector, as many laid-off employees turned to gig work for sustenance.

In the post-COVID period, abrupt job losses left many people facing severe financial burdens. Gig work has played a crucial role in helping people regain financial stability. However, issues such as job and social security, and the lack of benefits for gig workers, remain significant concerns. In 2020, the Code on Social Security was introduced to protect gig workers’ rights by providing social security protections. This code covers unorganised, fixed-term, platform, and gig workers, as well as inter-state migrant and contract employees. Despite these measures, the gig sector still faces challenges such as long working hours, lack of job security, and inconsistent income due to demand fluctuations. Social security schemes like pensions, health insurance, and unemployment benefits still do not adequately cover gig workers.

Despite these challenges, the gig economy continues to grow. As mentioned earlier, digital transformation and changing consumer preferences have increased reliance on remote services and doorstep deliveries. The demand for gig workers is surging, driven by the need to maintain the pace of development. Where traditional employment has failed to provide social and financial security, the gig sector has emerged as a supportive alternative, fostering entrepreneurial aspirations and financial independence.

The gig economy offers numerous opportunities by encouraging an entrepreneurial culture and innovation. However, sustainability is crucial for long-term success. Continuous upskilling and reskilling are necessary for gig workers to remain competitive in the market. As the economy expands, gig workers have more opportunities than traditional employees to take on multiple work arrangements, providing both flexibility and a sense of freedom. From choosing their preferred areas of work to enhancing productivity, gig workers have ample opportunities for growth.

An economy plagued by large-scale unemployment cannot progress without addressing this critical issue. Here, the gig sector plays a vital role. Gig employment also benefits the economy in other ways. Traditional employees may feel compelled to perform tasks that underutilise their potential, leading to resentment and dissatisfaction, which can affect their personal lives and society at large. In contrast, self-employed gig workers are less likely to experience such maladjustment, as they have greater control over their work choices.

With the gradual shift from traditional to gig employment, the economy is advancing towards growth. This transition not only enables better utilisation of the population’s potential but also addresses previously neglected gaps in the economy and society. The gig sector is thus preparing a new workforce with a changed mindset—one that values leading a self-made legacy over merely competing for jobs.