Merenungsang Ao
Assistant professor, HOD (Department of Sociology), St John College, Dimapur
Unemployment occurs when someone is willing and able to work but does not have a job. As for the gig workers they are independent contractors, online platform workers, contract firm workers, on- demand workers and temporary workers. The raising unemployment has contributed to greater participation in gig works, freelancing and other forms of flexible employment as individual strive to maintain income while working toward re-entering stable employment. The examples of gig workers are ride-share drivers, food delivery couriers, task based app workers etc.
Gig work is incredibly diverse, spanning everything from physical, local task to high-level digital services. The gig economy in India has emerged as a significant pillar of the country’s economic landscape, reshaping the way services are delivered, work is performed and income is generated. Spanning sectors such as food delivery, ride-sharing, freelance creative services and remote software development, gig work now contributes substantially to economic activity across urban and rural markets. While digital platforms and technology driven market places have enabled seamless service delivery and workforce participations the rapid expansion of the gig workforce has also highlighted concerns regarding job security, social protection and acess to benefits traditionally associated with formal employment.
Growth of the Gig economy in India
India’s gig economy has experienced remarkable growth in recent years, emerging as one of the fastest expanding segments of the labour market. Driven by increasing digitalization, widespread smartphone adoption, expanding internet connectivity and the rise of platform based business models, gig work has become an important source of employment and income generation across the country. According to estimates by NITI Aayog, India has approximately 7.7 million gig workers during 2020-2021, representing a significant and growing share of the workforce engaged in flexible, task- based and platform mediated employment.
This growth trajectory is expected to accelerate further in the coming years. Projections indicate that the gig workforce could expand by additional 11 million workers by 2026, reflecting the increasing demand for on demand services and the growing acceptance of flexible work arrangements among both businesses and workers. The expansion is being fuelled by opportunities across a diverse range of sectors, including transportation, food and grocery delivery, e- commerce logistics, professional freelancing, healthcare services and information technology. By 2030, India’s gig workforce is expected to reach 23.5 million people, accounting for about 4.1% of the total workforce and 6.7% of the non-agricultural workforce. This growth reflects a deeper transformation in employment patterns rather than a temporary trend.
This expansion is reflected in it’s economic scale with India’s gig economy projected to reach a valuation of USD 455 billion in 2024. It is also growing at a 17% compound annual growth rate (CAGR). By 2030 , it could contribute 1.25% to 2.5% of India’s Gross Domestic Product (GDP).
The above figures underline the emergence of a parallel employment ecosystem that now plays a central role in job creation and service delivery.
Challenges and weaker vulnerabilities
The gig economy has revolutionized the nature of works all across the world providing new job opportunities and flexibility of labour to millions of gig workers. Whether it is uber, zomato or swiggy, the gig economy is said to have revolutionized India’s economy with at it’s forefront the demographic divided of half a million labor force comprising the youth. However, despite the enormous benefits provided there are several challenges causing adverse effects on the workers and the economy as a whole. Many gig workers do not have access to essential social protection measures, including paid leave, health insurance and retirement benefits. Income volatility remains a persistent concern, while occupational and economic risks such as road accidents, fluctuating demand and periods of reduced work availability are largely borne by the workers themselves.
While digital platforms closely monitor performance metrics such as efficiency and customer ratings, accountability for worker welfare often remains limited beyond the completion of assigned tasks.
The prevailing model is characterized by long working hours, variable incentive structures and significant exposure to economic uncertainties all of which can adversely affect worker’s financial security and overall well-being. Gig workers particularly those identified as ambitious hustlers and earn to burn report limited access to skill development opportunities and express a preferences for roles that offer clearer pathways for career advancement and professional growth. The gig economy expands access to work but without adequate safeguards it also expands exposure to risks.
