Size of India's gig economy, the challenges it faces and possible remedies

While the tribe of contractual workers is growing rapidly, many of the challenges they have been facing remain unaddressed

Gig employees are the ubiquitous new workforce. They are the ones that get us the meals we ordered online, transport us from home to office or wherever, and generally render a host of services that go unnoticed. While their tribe is growing by leaps and bounds, many of the challenges they have been facing remain unaddressed. Business Standard takes a look at the size of the so-called gig economy and where it is headed, along with the problems it faces and the likely solutions to these problems:

THE SIZE AND THE DISTRIBUTION

- 23.5 million: The expected size of the gig workforce by 2029-30. That's 6.7% of the non-farm workforce.

- 7.7 million: Estimated gig economy workforce in 2020-21. That's 2.6% of the non-farm workforce in India.

Industrial distribution

- 2.7 million gig workers in retail trade and sale, 1.3 million in transportation sector

- 600,000 in manufacturing, another 600,000 in finance and insurance

- The retail sector saw an increase of 1.5 million workers from 2011-12 to 2019-20, transport sector 800,000 and manufacturing 400,000 during the same period

- In the education sector, the expansion was from 66,000 to more than 100,000 by 2019-20

- Currently about 47% of gig workers are in medium-skilled jobs, 22% in highly-skilled, and 31% in low-skilled jobs

- Trend shows concentration of workers in medium skills is declining, that of low-skilled and high-skilled is increasing

- Domination of medium-skill gig workers will continue till 2030

THE CHALLENGES GIG WORKERS FACE

- Lack of job security, irregular wages, and uncertain employment status

- Rising stress due to uncertainty associated with regularity in available work and income

- Limited access to internet and digital technology

- Contractual relationship between the platform owner and gig worker denying the latter access to many workplace entitlements.

- Stress due to pressure from algorithmic management practices and performance evaluation on the basis of ratings.

LIKELY SOLUTIONS TO THEIR PROBLEMS

- Increase access to institutional credit for platform workers and those interested in setting up their own platforms

- Unsecured loans extended to first-time borrowers in the platform economy may be classified as Priority Sector Lending

- Skill development of youth and workforce to make them employable

- Govts can ensure universal coverage of platform workers through the Code on Social Security

- Paid Sick Leave, Health Access and Insurance for gig workers

- Occupational Disease and Work Accident Insurance to all delivery and driver partners

- Retirement/Pension Plans and Other Contingency Benefits

Source: Report on India’s Booming Gig and Platform Economy By NITI Aayog