The term ‘Gig Economy’ signifies a free market system in which temporary positions are commonplace and organizations contract with independent workers for short-term engagements. With the substantial rise in demand for gig workers, especially in shared services and logistics sectors, subsequent to the Covid-19 pandemic, an onslaught of job discovery platforms has emerged.
A report by Boston Consulting Group reveals that India’s gig workforce includes 15 million workers utilized across various industries like software, shared services, and professional services. Moreover, gig economy companies are generating an estimated 56% of new employment in India across both blue-collar and white-collar workforces.
Breakdown of Various Collar Jobs in the Gig Economy
Different collar jobs entail different job profiles and skill requirements. Blue-Collar Workers consist of the working class performing manual labor, while White-Collar Workers are salaried professionals, typically associated with office workers and management.
Gold-Collar Workers refer to highly skilled individuals who are invaluable to their company, examples being lawyers and research scientists. Grey-Collar Workers encompass employed individuals not classified as either white or blue-collar, often including those who work beyond retirement age like healthcare professionals and policemen.
Green-Collar Workers are those employed in environmental sectors of the economy, such as people working in alternative energy sources like solar panels. Pink-Collar Workers are traditionally engaged in jobs considered as women’s work, often low-paid, while Scarlet-Collar Workers refer to those working in the pornography industry.
Red-Collar Workers represent government workers of all types, while Open-Collar Workers signify those who work from home, especially via the internet.
Factors Contributing to the Gig Economy’s Exponential Growth
The digital age enables workers to execute tasks from any location. As a result, employers can choose the best talent available for a project without restricting their choice based on geographical boundaries. The changing attitudes of the millennial generation towards work, prioritizing satisfaction over rigid career paths, have also contributed to this growth. Additionally, increased migration and easy access to job training have further facilitated this trend.
The Challenges Associated with the Gig Economy
Despite the gig economy’s substantial growth, it remains largely unregulated. This results in little job security and minimal benefits for workers. Moreover, the high demand for skilled workers creates a challenge for those with limited abilities, forcing them to continuously upgrade their skills independently.
Furthermore, an apparent demand-supply mismatch has manifested, with more potential online independent workers than available jobs. This disparity will likely worsen over time, potentially reducing wages.
The Impact of Covid-19 Pandemic on the Gig Economy
Business disruptions due to Covid-19 led to a surge in demand for gig workers as individuals sought alternative income sources to sustain themselves, leading to a pandemic-induced boom in the gig economy. However, a significant downside is the reported fall in incomes for these gig workers, resulting in new business models catering to on-demand staffing requirements and renewed focus on labor codes that acknowledge gig workers and provide a universal minimum wage.
Existing Legislation for Gig Economy
The Code on Wages, 2019, assures a universal minimum wage and floor wage across both organized and unorganized sectors, incorporating gig workers. The Code on Social Security, 2020, identifies gig workers as a new occupational category, defining a gig worker as an individual who partakes in work or work arrangements and accrues earnings from such activities, outside the traditional confines of an employer-employee relationship.
Issues in regard to Security Codes for Gig Economy
Several concerns arise over the implementation of these codes. For instance, while platform workers are eligible for benefits such as maternity benefits, life and disability coverage, old age protection, etc., the provision of these benefits is not guaranteed. There’s an ambiguity in terms of responsibility and no fixed responsibility is defined for delivering the welfare measures.
The Way Forward for the Gig Economy
Clarity is crucial in ensuring social security measures for gig workers without compromising the quality of platform work. A socio-legal acknowledgement of work variability in the gig economy is essential, with joint accountability on the state and platform companies for the delivery of social services. To prevent breakdowns in providing welfare services, a collective effort is needed from the state, companies, and workers.
The gig economy presents both opportunities and challenges. It offers flexibility and independence to workers while necessitating the need for new regulations and labor codes. The future of the gig economy lies in successfully navigating these complexities and creating an equitable work environment for all.
