Gig Growth, Rising Vulnerabilities

India's booming gig economy has created millions of jobs and unprecedented flexibility - but without robust protections, the very workers powering this revolution may be left behind

- KDP RAO

An innovative economic model has emerged in the last decade, redefining employment and the labour market to the benefit of both businesses and unemployed youth. It is the gig economy. The digital revolution facilitated the creation of numerous opportunities for freelance and project-based work, nontraditional employment in fields such as content creation, graphic design, marketing, software development, and consulting, etc., assuring a quick source of income with a choice of work.

The 'platform economy', as it is referred to, has made a tremendous contribution to the world economy through the creation of new markets, expansion of labour supply, optimisation of asset utilisation, and reduction of transaction costs. For example, according to Federal Reserve & BLS data, around 36 per cent of U.S. workers have done some gig work, and about 10 per cent rely on it as their primary income. Similarly, delivery platforms in India, Indonesia, Brazil, and Nigeria operating on low fixed costs and high scalability employ millions of gig workers, and the revenue growth is phenomenal. For example, Uber's gross bookings grew from virtually zero in 2010 to over USD 140 billion annually by 2024. The LFPR has risen dramatically as the platforms have pulled into the workforce those who previously stayed away from active labour markets, such as students, retirees, stay-at-home parents, people with disabilities, and immigrants.