Gig workers’ participation in the workforce increased by 55 per cent: Taskmo report
According to The Taskmo Gig Index (TGI) released by Taskmo, an on-demand staffing platform, there has been a significant 55% increase in the participation of gig workers in the workforce compared to the previous year. This rise in gig workers is attributed to the growing job opportunities that have expanded from 40 million to approximately 200 million gig jobs within just one year.
The surge in gig job opportunities has opened up various roles for individuals seeking flexible work arrangements. Among the popular job roles in the gig economy are last-mile delivery executives, pickers, packers, sorters, customer support representatives, field sales executives, and positions in the quick commerce sectors. These job opportunities cater to the evolving needs of the market, particularly in sectors such as e-commerce, logistics, and customer service.
The gig economy has gained momentum due to the rise of digital platforms that connect gig workers with employers looking for on-demand services. These platforms offer a convenient and efficient way for companies to access a diverse pool of talent for specific tasks or projects. Gig workers, on the other hand, benefit from the flexibility and autonomy that comes with being able to choose their working hours and assignments.
The significant increase in gig workers’ participation can be attributed to several factors. Firstly, the gig economy offers individuals the opportunity to earn income outside of traditional employment structures. This is particularly appealing to those seeking additional income or those who prefer the freedom and independence that comes with gig work. With the rise of technological advancements and the availability of mobile apps, individuals can easily access gig job opportunities and engage in work that aligns with their skills and interests.
Additionally, the COVID-19 pandemic has played a role in shaping the gig economy landscape. The pandemic led to widespread job losses and economic uncertainties, prompting many individuals to explore alternative means of earning income. The gig economy provided a viable option for those seeking immediate employment or those who had to pivot their careers due to changing market demands.
The surge in gig job opportunities also reflects the changing dynamics of the labor market. Companies are increasingly adopting flexible staffing models to meet fluctuating demands and reduce fixed labor costs. By engaging gig workers, businesses can scale their workforce up or down as needed, ensuring efficiency and cost-effectiveness.
However, along with the growth of the gig economy, challenges and concerns have also emerged. One of the primary concerns is the lack of formal employment benefits and protections for gig workers. Unlike traditional employees, gig workers often do not have access to benefits such as healthcare, retirement plans, or paid leave. This has sparked debates and discussions around the need for appropriate regulations and social security measures to ensure the well-being and protection of gig workers.
Furthermore, gig work may not be suitable for everyone. It requires individuals to be self-motivated, adaptable, and capable of managing their time and resources effectively. Gig workers often face income volatility and uncertainty, as their earnings can fluctuate based on the availability of gigs and market conditions. This highlights the importance of financial planning and stability for individuals engaged in gig work.
To address the challenges and support the growth of the gig economy, various stakeholders need to collaborate. Governments can play a crucial role in establishing a regulatory framework that protects the rights of gig workers while promoting innovation and economic growth. This can include developing policies that ensure fair remuneration, access to benefits, and avenues for resolving disputes.
Companies utilizing gig workers should also prioritize ethical practices, providing clear expectations, fair compensation, and opportunities for skills development. Emphasizing the well-being and professional growth of gig workers can lead to higher job satisfaction and retention rates.
Additionally, it is important to focus on upskilling and reskilling initiatives to equip gig workers with the necessary skills for future job opportunities. Continuous learning and development can enhance their employability and enable them to adapt to evolving market demands.
Prashant Janadri, Co-founder of Taskmo, highlighted the growing acceptance of the gig economy among the youth and their preference for gig job roles. He emphasized that the younger generation is more open to exploring diverse opportunities and does not want to limit themselves to traditional work boundaries. This reflects the changing mindset and aspirations of the youth, who are seeking flexibility, independence, and the chance to gain varied experiences through gig work.
The job trends in the gig economy also revealed an interesting shift in hiring activity. While there was a decline in hiring in tier 1 markets, there was a significant boost in gig job opportunities in tier 2 and tier 3 cities. This indicates a trend of hyper-local recruitment, where companies are actively seeking talent from smaller cities and towns. This trend not only provides employment opportunities to individuals in these regions but also contributes to the decentralization of job opportunities, fostering economic growth in a broader geographic scope.
Among the cities monitored, Bhopal experienced the highest rise in gig hiring demand, followed by Mysore, Vadodara, Pune, and Coimbatore. These cities have witnessed a surge in gig job opportunities, indicating a growing demand for gig workers in various sectors and industries. This regional diversification of gig job opportunities can contribute to more inclusive economic development by spreading the benefits of the gig economy to a wider range of locations.
The data presented by Taskmo’s report highlights the dynamic nature of the gig economy and its potential to create employment opportunities across different regions. As gig work continues to gain popularity and acceptance, it is essential for policymakers, businesses, and gig workers themselves to adapt and address the challenges and opportunities that arise from this evolving work landscape.
The NITI Aayog report’s projection of India’s gig workforce growing to 2.35 crore by 2029-30, from 77 lakhs in 2020-21, highlights the significant potential and scale of the gig economy in the country. The report, titled ‘India’s Booming Gig and Platform Economy,’ provides valuable insights into the expected growth and impact of gig work on India’s labor market.
According to the report, gig workers are projected to account for 6.7 percent of the non-agricultural workforce or 4.1 percent of the total livelihood in India by 2029-30. This demonstrates the increasing prominence and influence of gig work in India’s economy, with a substantial share of the workforce engaging in flexible and on-demand employment.
The projected growth in the gig workforce indicates a shift in how people approach work and employment, driven by factors such as technological advancements, changing preferences for work-life balance, and the desire for greater flexibility and autonomy. The gig economy offers individuals the opportunity to choose their work engagements, set their schedules, and potentially earn a higher income through multiple gigs or projects.
However, as the gig economy expands, it is crucial to address certain challenges and ensure the well-being and protection of gig workers. Issues such as income stability, social security benefits, access to healthcare, and legal protections need to be considered to create a favorable and sustainable gig work environment. Policymakers, businesses, and stakeholders need to collaborate to establish appropriate regulations, social safety nets, and support mechanisms that safeguard the rights and welfare of gig workers.
The projected growth of the gig workforce also presents opportunities for businesses and entrepreneurs to tap into the gig economy’s potential. Companies can leverage the gig workforce to access a diverse pool of talent, scale their operations efficiently, and adapt to changing market demands. Additionally, the gig economy can contribute to job creation, economic growth, and innovation, particularly in sectors that heavily rely on flexible staffing and project-based work.
In conclusion, the NITI Aayog report’s projections indicate a significant expansion of India’s gig workforce in the coming years. While this presents opportunities for both gig workers and businesses, it is important to ensure the establishment of a supportive ecosystem that addresses the challenges and safeguards the interests of gig workers. With the right policies and frameworks in place, the gig economy can play a transformative role in shaping India’s labor market and driving inclusive economic growth.
