Is the Gig Economy here to stay?

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India has become the 5th largest country for hiring gig workers after the United States, China, Brazil and Japan. India has faced a major employment crisis after the COVID pandemic, there is an increase in the need for supplemental income due to high unemployment among urban youth and eventually people have turned to the latest trend which is the gig economy. Labor saving benefits such as labor flexibility, efficiency, additional income for poor people, improved productivity by reducing idle time and new business models; the growing demand for on-demand tasks, etc. is counted and listed.

As India poised to become a $5 trillion economy by 2025, the gig economy will be
an important building block to achieve the above objective, to bridge the income and
unemployment gap. In March 2021, Boston Consultancy Group (BCG) released a study, Unlocking the Potential of the Gig Economy in India, which stated that India’s gig economy has the potential to serve up to 90 million jobs in gigs. India’s non-agricultural sectors (which is around 30%) with the potential to add up to 1.25% to India’s GDP from efficiency and productivity gains alone.

Moreover, a recent report published by Taskmo showed that “the participation of young people in the
the gig economy grew 8x between 2019 and 2022.” Start-ups from some of the famous unicorns like Byju’s, unacademy, Flipkart and Amazon have emerged as significant drivers of the gig economy in India. Their success shows that the gig economy really works and is the future of work. They hire on-demand workers in skilled and unskilled jobs to cut costs.

Startups are also one of the largest providers of gig workers operating in over 100 cities. Gig workers also adapt to ever-changing market demand, which is relatively difficult with permanent workers. Gig workers are more profitable for companies and employers benefit from a wider range of candidate pools to choose from. According to an Aon Decoding the Gig Economy survey, 49% of 145 companies have already employed gig workers, and 65% plan to increase that number over the next 2-5 years. Therefore, there is vast potential for job seekers in blue, white and gray collar jobs.

Multinational companies benefited from gig workers before and after the pandemic and ultimately this trend is being followed by Fortune 500 startups. According to the
government agency India Brand Equity Foundation (IBEF), 75% of these companies have
about 10% gig workers, and this number is expected to increase significantly, especially in the
FMCG-Pharma, technology, services, manufacturing and banking, financial services and
insurance sectors (BFSI). The edTech sector is already riding the concert revolution and
employs more than 90,000 gig workers. Companies are increasingly looking for gig workers
in software development, marketing and sales, IT support, HR operations, customer support, etc.

The main reasons companies prefer to hire Gig Workers are that candidate vetting is
long. All these checks, selections and verifications consume a lot of time, energy and money, whereas with the help of gig economy, you can directly hire workers according to your task and time and you can pay once your work is completed and you are totally satisfied with the work. Because working with gig workers doesn’t mean too little onboarding, there’s money to be saved! Using gig workers can also reduce overhead costs for business owners.

There are a number of reasons why workers and companies are inclined to work
rather than a traditional permanent job. Workers seem to prefer odd jobs to full-time jobs.
part-time job due to flexibility and independence. He created better opportunities
to find more work around the world and make work more adaptable to change
flexible lifestyle needs and demands. With Gig, tasks can make lifestyle choices that a
conventional work would not allow it. They can choose when and where to work and
at the same time determine how much they will charge for their services.

The gig economy has changed how we work, who we work with and where we work from
still. Today, Millennials and Generation Z want control of their working lives, demanding flexibility and balance in their work. This is the reason why concerts are skyrocketing. According to reports, 3.2 million people regularly work in the gig economy, and this number is expected to grow to 7.6 million in the next five years.

In the report, India’s Booming Platform and Gig Economy, government think tank Niti Aayog estimated that workers engaged in the gig economy will drop from 77 lakhs in 2020-21 to 2, 35 crores in 2029-30. India’s gig economy is estimated to triple in the next four years and produce over 90 million gig workers by 2031. The perks/benefits that attract employees to gig work are the freedom, flexibility, and autonomy that gig work provides. More and more employees are choosing gig work as a career option, from delivery executives to freelance consultants. And more and more companies benefit from a flexible workforce; they spend less money on training or recruitment.

Due to these trends, gig work is here to stay and will contribute to the Indian economy.

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