Tracing the changing labour market: from permanent to gig

Abstract

For some time now, the labor markets have been undergoing an important transition. Gig economy has become a prominent feature of the labor markets across the world. Businesses have realized the cost-savings potential of gig economy and workers likewise have realized the benefits of flexibility the gig work provides. Post the COVID crisis, the transition into gig economy is expected to accelerate. As businesses become comfortable with the notion of a remote workforce, one of the central challenges impeding the rise of gig economy would get addressed. The report explores the current status of gig economy in the world, with special focus on the Indian gig sector. It identifies the role of aggregators in enabling the transition of labor markets and discusses the impact of COVID on it. It attempts to understand what attracts an employer and a worker to the gig economy, from their perspective. The report also digs into its dark side as well, identifying the areas of concern for both parties. The report finally generates a list of trends and insights, as well as a series of recommendations towards the end. The report discusses how people are now willingly opting for freelancing as a full-time career, how start-ups will continue to play a major role in the growth of gig work, and how even big businesses will play a more active role going forward. Businesses are expected to hire gig workers for a wider variety of roles in future, including CXO-level roles. Gig economy is expected to get a further boost with the rise of virtual companies and blockchain technology. Participation of Gen X and baby boomers in gig economy is rising and workers preferring freelancing for their primary source of income are expected to increase. Regulations in most countries including India are currently ill-equipped to deal with this rising sector, but attempts to catch-up are being made. Unskilled workers, being the most exploited lot, would benefit immensely from such regulations. The importance of gig workers’ union in tackling such exploitation is also discussed. The report also discusses the need for governments to proactively pass necessary regulations, and to run skilling and reskilling programs to extract maximum benefit from the rise of this sector.