Indian Labour Market: A shift towards gig economy

Prof Mithilesh Kumar Sinha Finance Officer Nagaland University, Lumami “There were laws created for businesses and there were laws created for people. What the sharing economy did was create a third category: people as businesses.” This quote by Airbnb co-founder Brian Chesky lucidly explains the “gig economy”, a trend that is gathering momentum as big software companies hire gig workers on a project-to-project basis.. The trend toward a gig economy has begun. The ‘gig’ or ‘shared’ or “on-demand” economy has become a trend globally and this is characterised by temporary positions and on-demand contracts with independent workers.   The gig economy has so far proved hard to define, hard to measure and hard to interpret. Some see it as part of a general shift of work towards less secure and more exploitative employment; others see it as creating a new form of flexible working that gives individuals new choices about how, when and where they work.   Indian labour market is seeing a shift towards gig economy, with an increasing number of workers seeking contractual or freelancing opportunities, and services sector is embracing it at the fastest pace, says a report. As ‘freelancing’ takes wings in India, a significant 41 per cent of Indian freelancers witnessed growth in last 12 months, a new PayPal study has revealed. Free agents or freelancers who would like to work part-time around other responsibilities, or as a supplement to their regular full-time job, are powering this on-demand economy.   An increasing number of workers in India are seeking contractual or freelancing opportunities with the Service sector embracing the gig economy at the fastest rate according to data from Indeed India.   The data, which was collected by Indeed from January 2013 onwards until October 2017, showed that 7.7% of all companies posting on the Indeed platform in India offer flexible work opportunities. In addition, 2.8% of all job postings on the site from India are for part-time or contractual roles. Furthermore, the leading sector in terms of job flexibility is the Service sector, with the role of Examiner offering flexible work arrangements in 75.2% of all job postings on Indeed.   “The data seems to indicate a seasonal trend in contractual hiring in the Service sector, where jobs of this nature increase towards the close of the year and remain relatively low at other times,” Indeed stated. Indeed also reported that the percentage of part-time job opportunities rises from an average 5% to 10% to a yearly high of 20% to 25% between the months of November to February.   Advantages For workers, the flexibility offered by gig work seems to be the biggest attraction. Many workers want to work on projects that interest them, at a time that fits their schedule and now, with the availability of the Internet, from their own homes Since work can be done remotely, there are really no boundaries or limitations to the places one can work, or the number of potential customers to whom one can sell one’s services. Additionally, there is not much investment required in IT-related gig work — just a good internet connection, a phone and a workstation. Since workers can choose their own projects, they also have the ability to keep their IT skills current. There is no more asking the boss for permission to take a certification course. For successful gig workers there is also a sense of accomplishment in selecting, soliciting and successfully completing work of one’s choosing. Many high-energy personalities enjoy the challenge and thrill of hunting down jobs and setting one’s own compensation levels. Greater flexibility and work-life balance, work that can be done from anywhere at any time, and high profit margins make gig work attractive.   Disadvantages Unfortunately, every coin has two sides and gig work is no different. Some of the challenges are so daunting that they altogether keep many from even looking into the gig route. In India, the majority of the gig work force operates without legitimate stamped contracts, relying instead on a pure mutual understanding of the work and compensation. This often leads to payment conflicts, as well as charges of fraud. Unless you are working with a tried and trusted customer, you assume a lot of risk.You will have to find your own gigs, and that is not always easy to do. Until you get a name for yourself, your income can be inconsistent. Even an established relationship with a customer isn’t a guarantee.   Gig economy is cutting across generations, is no longer restricted to the services sector and raking in high value gigs. It has arrived and is here to stay.   Employee policy assessments and evaluations need to be revamped. Government should also bring effective reforms in their labour laws.

(The views and opinions expressed in this article are those of the authors.)