ABSTRACT
The “Gig Economy” refers to a type of job market where people work on short-term contracts or get paid for individual projects through companies, third parties, or online platforms. This system has a big effect on many industries. It has changed how people are hired and has shifted the way our economy works.Because of its unique advantages, the number of gig workers is expected to keep increasing, with many talented people choosing gig work as their main job. While the gig economy offers great benefits like flexibility, job opportunities, and freedom, it also negatively affects the work environment in some industries. The gig economy includes various fields where self-employed workers and specialists are contracted, such as IT, social media marketing, food and drinks, creative fields, art, and design. In this article we have discussed the current trends of gig economy along with its opportunities and challenges in global as well as the Indian context. This article tries to investigate the growing attributes of work around the world, precisely in India, with the dawn of gig economy. It further explores background, present trends and future prospects of gig work in India, primarily due to the augmentation of work involving high tech.
Keywords: Gig Economy, Freelancers, Contract.
INTRODUCTION
The term “gig,” which has been around for a while, is now more commonly used. Today, “Gig Economy” refers to temporary or freelance jobs where people work on specific projects and get paid after completing them. The idea is that each job is like a separate “gig.” According to the Merriam-Webster Dictionary, a “Gig Economy” is a system where temporary or freelance workers are hired to do jobs, usually in the service industry.Innovation has a big effect on the economy, affecting nearly every financial activity nationwide. Online platforms now offer a broad array of goods and services, including essentials, clothing, medicine, healthcare, airline tickets, hotel bookings, taxi rides, prepared food, event tickets, financial tools, and loans. Because these services are available online, people are using them more than ever. Behind this advanced economy, many people are working hard, from experts with specialized skills to those in roles like delivery, driving, and call center jobs.This describes an emerging economy that doesn’t rely solely on traditional employer-employee relationships but depends more on freelance workers. In today’s economic climate, people are taking on part-time or on-demand jobs, using both online and offline platforms to find work opportunities.
The widespread use of the internet and the increasing number of smartphones allow people from various countries to connect through digital platforms.[1] This makes it easier for organizations to share their talent needs and find remote workers online. These trends highlight the importance and visibility of the gig economy today. In the gig economy, companies hire independent workers temporarily for specific projects or services.
India is going through a unique phase in its economy. While the labour market faces high unemployment, more people are turning to flexible, temporary work. Assignment-based jobs are helping millions of unemployed Indians by offering temporary relief.[2] This shift in work patterns has led to the rise of the “gig economy.” Although the idea of the “gig economy” is not new, as jazz musicians in the early 1900s used “gigs” to describe their performances, it now includes various types of workers. These include self-employed individuals, freelancers, temporary workers, on-call workers, and those working through online platforms.
For many years, having a full-time job was the norm. However, with more people entering the workforce, the rise of digital technology, and recent economic challenges, finding permanent jobs has become difficult for many job seekers.[3] As stable employment becomes scarce, people are increasingly turning to contractual work as self-employed individuals, known as “independent workers,” “gig workers,” or “freelancers.” In some developed countries, younger workers choose temporary jobs as a lifestyle choice to avoid the restrictions of permanent roles. However, in many places, gig platforms provide “bridge employment,” which can lead to permanent positions. The gig economy is particularly appealing to digital start-ups because it allows them to pay lower wages to contract workers and reduces the risk of legal issues during economic downturns.[4]
In the Gig Economy, workers are mainly independent contractors and freelancers. This model allows companies to quickly expand their operations by using an on-demand workforce, without the responsibilities tied to traditional employment. Although gig workers have the freedom to choose their jobs from different companies, they don’t have the protections of standard labour laws, such as social security benefits. As a result, they face challenges like unstable income, poor working conditions, low pay, and no government-provided social security benefits.
[1]Healy, J., Nicholson, D. and Pekarek, A.,‘Should we take the gig economy seriously?.Labour& Industry: a journal of the social and economic relations of work,’ 27(3), pp.232-248.
[2]Techtarget, 2020.gig economy, https://whatis.techtarget.com/definition/gigeconomy (Lastaccessed on 4 September 2024)
[3]Manyika,J,Bughin,J.,Robinson,K.,Mischke, J. and Mahajan, D., ‘Independent work: Choice, necessity, and the gig economy. McKinsey Global Institute,’(2016),pp.1-16.
[4]Friedman, G., ‘Workers without employers: Shadow corporations and the rise of the gig economy. Review of Keynesian Economics,’ (2014) 2(2),pp.171-188.