GIG ECONOMY
PRESENTED BY –
NISHANT RAJ
B.COM(HONS)
5TH SEMESTER
21BCOM014
Concept Of Gig Economy
A gig economy is a free market system in which
temporary positions are common and organizations
hire independent workers for short-term commitments.
The term “gig” is a slang word for a job that lasts a
specified period of time.
Traditional economy refers to an economy whereby a
company employs people on a full-time basis to carry
out a particular task.
Emergence/History of the Gig
Economy
The word “Gig” was first used by Jazz musicians which meant Job, in
1915. The first temp agency was opened in the year 1940, which
provided jobs to typists and other clerically trained staff on a
temporary basis. During 1990s, 10% of the US workforce was
employed as contractors, temps and on-call workers, In1995
Craigslist was introduced, which provided local San Francisco- based
online classifieds different jobs, items wanted and for sale, gigs,
services Gig economy gained significance around 2008 when the
Great Recession hit due to which people had less secure .
Importance of the Gig Economy
The gig economy provides workers with
unprecedented flexibility.
Gig work spans a wide array of industries and skills.
The gig economy contributes to economic growth by
creating job opportunities and driving innovation.
Freelancers often develop an entrepreneurial
mindset, as they manage their own work, clients, and
projects.
Advantages
Employers can cut costs through the elimination of
unnecessary overhead costs such as benefits, office
space as well as training
Employees enjoy a high level of flexibility.
Employees can work independently.
Itbreaks work monotony hence promotes creativity and
enthusiasm.
Disadvantages
While
it is possible to earn a modest pay with the gig
economy, most freelancers barely make enough to keep
them going.
Withthe lack of provision of benefits, gig employees miss
out on essential benefits such as health as well as insurance
benefits.
The need to be consistently in the lookout for other gigs
may put too much pressure on freelancers causing too much
stress.
Scope of the Gig Economy
Freelancers in creative fields such as writing, design,
photography, and videography have found ample opportunities
in the gig economy.
Online sellers, often referred to as “e-tailers,” use platforms like
Amazon, eBay, and Etsy to offer products without the need for a
physical storefront.
Online tutoring, language instruction, and educational content
creation have gained traction, offering flexible learning options
Current Status of the Gig Economy in
India
India has witnessed a rapid growth of gig workers across various
sectors. Ride-sharing (Ola, Uber), food delivery (Swiggy, Zomato),
and e-commerce (Amazon Flex) platforms have become
household names, providing income-generating opportunities.
Freelancers are offering a diverse range of skills, from content
writing and graphic design to web development and digital
marketing.
The pandemic highlighted the gig economy’s importance during
lockdowns when demand for delivery services surged.
Future Potential of the Gig Economy
According to a NITI Aayog June 2022 report on the gig
economy, the gig
workforce has the potential to increase to 2.35 crore by 2030
In 2023, gig or contractual hiring is expected to increase to
9% on an average of the total workforce hiring as compared
to the 8% recorded in 2022
In terms of expertise reported by NITI Aayog, 31% of the
workers are in low- skilled work, 47% in medium-skilled
work, whereas 22% are in high-skilled work.
Conclusion
In conclusion, the gig economy has transformed the
way we work, providing unprecedented flexibility and
freedom to workers around the world. Ultimately, the
challenge will be to strike a balance between the
benefits of the gig economy and the need to protect
workers and society as a whole.
