Gig economy or gig work may have been one of the new things we heard about during the pandemic last year, touted as the future of work, and a fresh new approach to the conventionally structure of the workplace. But a year later and a vicious second wave that spikes unabated, ‘gig’gers are facing up to the reality of their chosen work mode.
Gig is a newer term for short-term contracts or freelancing, and essentially refers to those who are not employed by a firm and instead move from a specific job project to another depending on their skills and availability of work.
“The main issue for gig workers is lack of social security benefits - how to pay for medical expenses and keep kitchens running at home, given the uncertainty of work opportunities,” points out Sahil Sharma, co-founder & CEO, GigIndia.
Within gig are two broad classifications - physical and digital. The physical gig economy, referring to blue and grey collar jobs done by low to semi-skilled workers, has seen a boom in recent years thanks to aggregators in cab, food, employing hundreds of thousands of people based on this model.
There is also the digital gig economy, which encapsulates semi to high skilled workers, who, in today’s age, work through mobile or digital platforms, and ranges from freelance writers to consultants and self-employed professionals. The lure of this mode in particular had gone up substantially during the initial lockdown last summer, the pandemic adding both a cloud and a silver lining to it!
As many were forced to work from home and companies went on a retrenchment spree to cut down on costs, employing gig workers suddenly became an attractive proposition. This especially gathered steam after the Unlock process started and the rush of pent-up demand meant companies had to scramble to meet extra demand. But with many worrying whether it will be a temporary phenomenon and did not particularly wanted to invest on costly recruitments, gig workers became an attractive solution.
HR forecasts now say more and more people will be forced to move out of full-time jobs and eventually become part of the gig economy. A study by business chamber Assocham last year predicts that India’s gig economy will grow at a rate of 17 per cent to be worth Rs 33 lakh crore by 2023. An estimate by a prominent Bengaluru gig work provider says that approximately 56 per cent of new jobs in India, including both blue- and white-collar jobs, are now being generated as gig work.
But the second wave of the pandemic has also added to the uncertainty that has always been part of being a gig worker - the lack of a security net. Experts believe gig workers could be badly impacted if the second wave, and the associated round of lockdowns and restrictions, persist longer. “Given the present pandemic situation, however, there is no option but to hunker down for the next few weeks till the worst phase of the second wave passes,” feels Sharma.
But, if one can handle the uncertainty, there is definitely hope. This time around, companies have realised the importance of gig work, and many are rushing forward to help out their gig workers in whatever way they can.
Urban Company, which just got a valuation of over a billion dollars earlier this week, is offering its gig workers medical coverage. Explains Gaurav Bajetha, director - workplace infrastructure and administration, Urban Company, “The second wave has posed the same challenge for gig workers as for everyone else: medical support. During this humanitarian crisis, we are standing by our partners and providing them with testing, vaccination and any other medical support that may be needed.”
Companies also realise how crucial this workforce will be when the lockdown ends and orders start pouring in. “Much like (last time), gig workers will be the first choice to meet pent-up demand in diverse domains as more companies turn to the gig economy due to its cost competitiveness, flexibility and faster turnaround times. Although things seem bleak now, I believe the recovery will be swift,” Sharma of GigIndia says.
