The gig economy is a free market where organizations hire workers for a short period of time, around half of new employment in India is generated through the gig economy, which describes the importance and shift of the economy towards short-term employment from regular permanent employment.
Pros of the gig economy
- It gives employers the autonomy to hire workers and experts for the short nature of work and build efficiency in their operating system.
- It offers employees the to gain experience within a short period of time and move to other sectors of their interest without spending the whole of their life in the same organization.
- It offers small industries the autonomy it needs to hire workers without going through cumbersome labor laws.
- It offers the best utilization of technology like IT etc… to hire and deliver the short nature of jobs in organizations.
Cons of the gig economy
- It might be exploited by big industries to hire workers and may put them to work without proper working humane conditions.
- As it will not offer the Social Security, it might create a large no. of the dependent population in the long run.
As the gig economy may exploit the workforce without offering the right safety, and occupational health measures, it must be properly regulated through suitable codes on Social Security even for gig workers, also with the changing nature of economy the permanent employment may put the workers into pseudo employment as they get a salary but no real work, so that he loses precious time in gaining experience, so with the right mix of safety nets to even gig workers, it can become a game changer in the economy.
The gig economy has been growing up rapidly in the 21st century, here employers and employees have contracted out of the original relationship between employee and employer. In this worker is higher for a short period for a particular work after completion of work employer has no responsibility for gig work related to provident fund, wages, or any kind of social security of the worker.
At present many advanced economies like the US, and the UK have this kind of gig work form, and they are doing well in all aspects. Challenges are many, but benefits also, for an instance if someone work as a gig works in ola for a short period, now he has an opportunity to move to another field like the IT sector after moving to the sells, so individual have can acquire many skills and opportunity to move from one sector to other without any trouble of paperwork or any kind of contracts which might be signed by him, if he was in regular work form.
As per many reports indicates that the gig work workforce is growing at a new pace in tier 2,3 cities and generating around 56‰ new jobs in blue-collar and white-collar in the economy. Despite the pros, it has cons also, here company does, t give any kind of social security after the work has been completed. Govt has come up with the labor code 2020, now the states have to implement it in their area.
The law falls under the concurrent list if the state wants to modify the way it can. India has a huge population we need to use this demographic dividend in the right direction to divert this population from becoming a demographic disaster.
?Gig economy is a free economy system in which organizations hire Or contract workers for a short period.
?Indian workforce includes 15 million workers (approx.) across industries such as software shared services and professional services.
?It generates 56% of new employment in India.
?Gig worker is a person who performs or participates in work arrangements and earns from such activities outside of the traditional employer-employee relationship.