By the end of this decade, the total volume of gig workers in India is expected to cross 23 million. This figure denotes a 200% jump considering the present estimation of active gig workers in India.
The gig economy continues to generate millions of jobs after the COVID-19 epidemic while maintaining ties to the local community. Let’s learn about the gig economy as a whole, its benefits, and how the logistics sector can bring in new opportunities for gig work in 2023.
The Future of Work: Exploring the Gig Economy Phenomenon
Gig economy refers to a working class that completes skill-based projects on behalf of non-employed contractors. Originally, ‘gig’ used to be a lingo among the musicians who often used the jargon to describe artists performing in specific venues only for a few days.
If anyone is unsure about the reasons behind the quick-fire popularity of the gig economy, then they should learn about this sector’s various possibilities. Presently, medium-skilled occupations make up approximately 47% of gig labour, high-skilled jobs make up about 22%, and low-skilled jobs make up about 31%. These numbers undeniably indicate the importance of the gig economy in India.
What is the state of India’s Gig Economy?
The NITI Aayog declaration (2020-21) announced the involvement of almost 7.7 million gig workers in the Indian economy while calculating the cumulative non-agricultural workforce. More positive aspects surfaced when the employment elasticity to GDP expansion for freelancers was discovered to beat the overall employment availability for 9 consecutive years (2011 – 2020).
In addition, there is a lot of flexibility in terms of working hours when you are entrusted with the responsibility of executing and delivering a gig. Whether you are a platform or non-platform gig worker, you get the opportunity of working both full-time and part-time. Lastly, as the requirement of media-based skills like content development, web designing, video editing, etc., is increasing, the curve of gig workers can be expected to soar at least till the end of this decade. Not to mention the rise of the trend for low to medium skilled gig workers to work part-time or on-call shifts, frequently through online aggregate platforms for ride-hailing, food delivery or logistics.
Why is the Gig Business Model a Game-Changer for Workers?
The emergence of the Internet and the emergence of social media have changed the way we live. This approach allows for more freedom because gig workers may pick their own projects and working hours. Additionally, it has increased job options, enabling more people to join the workforce and raise their earning potential while allowing people to amass a varied range of experiences and abilities, which can improve their employability.
95% of those prepared to work on a freelance structure for global buyers stated it is extremely essential for them to have more control over their work-life balance and the opportunity to choose their own work hours compared to a normal full-time employment. This is especially helpful for people who have other duties, such as family obligations. The gig economy has ushered in a new paradigm where employees have more flexibility over their work-life balance and future career paths.
Role of Logistics Sector in India’s Gig Economy
Last-mile logistics plays a vital role in influencing the Indian gig sector. If you are confused how, then follow these couple of points:
Increased Employment
Logistics companies that handle remote operations can hire sufficiently skilled workers on contract. It minimises unemployment and also reduces the inventory expenses of logistics companies.
Longer Operation Hours
These days freelance workers are ready to operate for longer hours than in the past. It is a very important factor that makes the gig economy thrive. The logistics sector requires on-time delivery that transcends the 9-5 clock of traditional employment. In this regard, gig workers can become an integral part of this developing sector.
Implications for the Future of Gig Work in India
Gig workers will be in great demand even in the upcoming 10 years because of their industry-specific knowledge and practical capabilities. Moreover, as these classes of people constantly strive to upgrade their skill sets, companies working with them would be able to experience higher client expectations with time.
However, the gig business model also seems to face a number of challenges such as unstable pay, a lack of work stability, and an unpredictable employment position. But the initiatives by the government in the recent years paves a way for a positive growth in this sector and its workers. Additionally, gig work platforms are also stepping up to support their partners. In the upcoming years, a combination of these factors should help the gig economy find a balance which benefits all parties.
