Earlier in India, every one wished to get a permanent job with a fixed salary, timing, and some specified work but with changing times, the way people work has also changed. The gig economy is on the rise which is clearly backed by an estimate from the BusinessWorld that it is creating almost 56% of the employment opportunities in India and would even be increasing 25-30% annually.
What is the Gig Economy?
Gig economy is a temporary work system based on a short-term relationship between workers and companies. Workers perform “gigs,” in which they are employed for a specific task or time. This is done to achieve the advantage of cost, quality, and flexibility. Once the task is complete, the worker is free to move on.
Why the Gig Economy is on the rise in India?
India is the country which has the most unemployed population in the world comprising of unemployed students, experienced professionals, less educated workforce, retired, and women who quit the jobs for family responsibilities. Gig economy professions are mainly growing due to reasons such as illiteracy resulting in unskilled labor, population explosion leading to a lack of job opportunities and poverty making people financially unstable. The slowdown in economies, organizational downsizing and cost-cutting have also contributed to the rise of professionals opting for Gig Economy Jobs.
India is still fighting unemployment as there is a requirement of 8 million jobs every year just to keep the employment rate constant and hence, a lot of the people have started to work independently and freelance to make a living and strive.
Why the Gig Economy is thriving?
There is obviously a need for people to start joining the gig economy but a lot of individuals have already started to choose this line of work for its various advantages. The flexibility in the way they work, providing them a good work-life balance, better wages and ultimately have a choice in terms of the work they do makes the gig economy professions attractive for workers. It is even beneficial for the employers as they need to train less for the task, and have savings in labour and office costs.
What to expect?
The government has extended the facility of hiring workers on fixed-term employment to all sectors for improving the ease of doing business for players intending to hire people for completing specified projects, tasks and orders. Earlier it was allowed only for apparel manufacturing sector as per the Industrial Establishment 1946, however, very soon a new law for Fixed Term Employment is expected to be announced. Companies would be thinking over on how to include gig professionals not just on a junior/entry level but will also do it for the mid-senior levels as well.
Thus, we would be seeing a lot of enhancements for the gig economy from the government and employers, and in turn, would be grabbing even more eyeballs than it ever was.