Gig Economy – Importance and meaning

Gig Economy Meaning: What is the Gig Economy

The Gig economy is basically the labor market that depends on temporary and part-time workers. These gig workers are usually contractors or freelancers.

These individuals have the flexibility of working independently, but they don’t get the benefits of full-time permanent employees.

Additionally, there’s no stability in this type of work as this concept is based on-demand work. The contractors may have a lot of as awork in one month and less influx of clients in the next or no work at all either.

Table of Content

• What is the Gig Economy
• What are Gig Workers
• Rise of the Gig Economy
• What is Gig Economy in India
• What are Gig Economy Examples
• What Factors Contribute to Gig Economy Growth
• What are Gig Economy Jobs

What are Gig Workers

Gig workers are basically individuals who work in various roles such as freelancing or contractual work on a temporary basis. These workers get paid either project to project or based on the results they drive for the company that has hired them.

Many gig workers also prefer getting paid hourly depending on how many hours they have put in while finishing the assessment assigned to them.

Rise of the Gig Economy

Currently, gig work makes up to 12% of the total global economy. And as per the Niti Aayog, the gig work is about to rise up to 200% by 2030.

This is happening because post pandemic, most people are after the work flexibility than job stability. Apart from that, it’s offering a promising future to many unemployed youths and women in the developing countries so that can be another reason for the rise in gig economy.

It’s also important to note that the gig work, especially the online part-time jobs, is more popular in developing countries in contrast of the developed ones as it allows them to work in foreign countries for a better exchange rate without having to cross the border.

What is Gig Economy in India

Currently, over 15 million Indian freelancers working on technology projects. So, yes, the gig economy has grown in India.

Apart from that, recently, about 50 Zomato stores in New Delhi shut down because their delivery partners (the gig workers) went on a strike due to their new change in the policy. The government supported their cause.

Knowing this, some experts also say that with this type of growth in the gig workers, they can also alter the results of the polls when it comes to election voting due to their high number and unity. So, the Govt. needs to pay attention to the cause.

Regardless, these contractors still don’t get many benefits like regular full-time employees do such as provident fund, minimum wage, paid leave, health insurance, or job security.

Considering this, as an HR, you should ensure that any gig worker or contractor you hire gets fair pay and flexible work policies; plus, address their concerns, if any.

What are Gig Economy Examples

 We can define gig economy by what you see in daily life. Some examples might include ride sharing services like Uber, food delivery services like Zomato and Swiggy.

Plus, you might be familiar with marketplaces like Upwork or Fever. These platforms connect independent contractors or freelancers with companies or individuals who want to hire them.

These independent contractors might be working in any sort of industry from marketing and design to tech.

What Factors Contribute to Gig Economy Growth

The gig economy is on the rise, and a lot of factors are contributing to its growth.

1. The number one contributing factor is the growth in startups. These small companies don’t have enough budget to hire full-time employees, so they go for freelancers and independent contractors.
2. The next factor is generations. Many millennials are opting for gig work instead of full-time permanent jobs to gain the benefit of flexible work-timing; another reason is to work from where they want.
3. Even generation X is taking part in it. They’re using their experience and knowledge to grow into consultants working independently.
4. Many MNCs are also opting for freelancers and independent contractors to cut the cost for operational expenses.
5. A rise of freelancing platforms, making it easier for individual contractors and employers to connect can also be a reason for this economy to grow.

What are Gig Economy Jobs

Some of the top gig economy jobs are the following:

1. Rideshare and Food delivery drivers: These drivers and delivery partners work with companies like Uber, Zomato, and Swiggy. They get paid depending on the number of rides or orders they have accepted.
2. Freelance Writing: This is for individuals who are in content writing and copywriting. You can hire freelance writers to create product documentations of your company, write blogs and articles, or other similar writing jobs. They can significantly contribute to your regular marketing team and get much done.
3. Online tutoring: This has been around for a while. Many people are able to level up their career due to people teaching essential industry knowledge based on their expertise. You can check some of these individuals on platforms like Udemy or Coursera.

One can also find other jobs like graphic design, short-term rentals host, virtual assistant, pet services, social media management, and much more.