Gig Economy

Technological progress, globalisation and demographic change are creating many new opportunities, but not for everyone; Indian Government and policymakers should focus on helping those at risk of being left behind through well-targeted education and training, labour market and social policies as part of inclusive jobs strategies to help everyone get ahead.

Since non-standard forms of work are likely to increase due to technological disruptions, Governments need to ensure that everyone has access to social protection and is covered by key labour market regulations, regardless of contract or employment type. Social protection can be made more effective by extending coverage and adapt or create specific schemes, consistent with the principle of a universal social protection floor, while promoting portability of benefits.

Equality of opportunities also needs to be strengthened, so that socio-economic background does not become the key determinant of success in the labour market, including through targeted interventions during college years and in the transition from institution  to work.

Working conditions should be adapted to make it easier for people to combine work, care and social responsibilities. This will increase labour force participation among both men and women, narrow gender gaps and reduce the risk of poverty and exclusion.

Building public support for reforms is vital, according to the new Jobs Strategy. This will require winning a mandate for reform and effective communication, as well as complementary reforms to cushion short-term costs. Once reforms are passed, they must be fully implemented, effectively enforced and rigorously evaluated.

India although working hard in making Skill QP’s ( Qualification packs) through various sector skill councils,  adoption of the best practices  and standards synergistic with international skills norms, yet it needs  to invest in an effective education and training system, which gives workers the skills needed by employers and offers opportunities and incentives for education and training throughout their working lives. Social partners also have a key role to play in fostering inclusiveness, protecting workers and making effective collective bargaining systems.

The Strategy stresses the rise in various forms of non-standard work, including temporary jobs and self-employment. Despite currently representing only a small share of employment, “gig work”  (The employee often works on a specific project for a company, either as an independent contractor or a freelancer. … The benefits of a gig job are that it allows you to work on multiple projects for multiple companies at once) is also on the rise and it may expand significantly in the near future. The challenge for Governments is to accompany innovation in the creation and use of non-standard employment arrangements, while avoiding abuse, creating a level playing field between companies, and providing adequate support to all workers.

A “gig economy” is a free market system in which temporary positions are common and organizations contract with independent workers for short-term engagements.

Digitization has also contributed directly to a decrease in jobs as software replaces some types of work and means that others take much less time. Other influences include financial pressures on businesses leading to further staff reductions and the entrance of the Milennial generation into the workforce. The current reality is that people tend to change jobs several times throughout their working lives; the gig economy can be seen as an evolution of that trend.

In a gig economy, businesses save resources in terms of benefits, office space and training. They also have the ability to contract with experts for specific projects who might be too high-priced to maintain on staff. From the perspective of the freelancer, a gig economy can improve work-life balance over what is possible in most jobs. Ideally, the model is powered by independent workers selecting jobs that they’re interested in, rather than one in which people are forced into a position where, unable to attain employment, they pick up whatever is available to them even mismatching to their skills and later on non performance and job loss.

In Countries like India, where trends have been loyal, secured  and life time employability like why people look at Government jobs, this trends may create human disruption, depression, keeping abreast for new skilling challenges.     New evidence  reveals that countries that promote job quantity, quality and inclusiveness – such as Denmark, Iceland, Norway and Sweden – perform better than those which focus predominantly on market flexibility. While flexibility and adaptability are essential to stimulate the creation of high-quality jobs in an ever more dynamic environment, the gains and costs need to be fairly shared between businesses and workers, according to one  OECD Study.