Q. “Consider the following statements regarding the “gig economy”:
1. Gig workers include self-employed, freelancers, independent contributors and part-time workers.
2. It is tech-enabled platforms connect the consumer to the gig worker to hire services on a short-term basis.
Which of the statements given above is/are correct?
Gig economy can be defined as a work engagement where on one side, there is a service seeker i.e. a consumer with a demand for a specific task, and on the other side, and there is a service provider i.e. a gig worker who can perform that specific task.
- A gig economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career.
- In this economy, tech-enabled platforms connect the consumer to the gig worker to hire services on a short-term basis.
- Gig workers include self-employed, freelancers, independent contributors and part-time workers.
- The digital gig economy generated a gross volume of approximately $204 bn from worldwide customers in 2018.
- Transportation-based services contributed to over 50% of this value. The size of the gig economy is projected to grow by a 17% CAGR and generate a gross volume of ~$455 bn by 2023.
- India has emerged as the 5th largest country for flexi-staffing after US, China, Brazil and Japan.
- Haryana, Madhya Pradesh, Andhra Pradesh, Gujarat and Telangana have most opportunities in terms of growth for the flexi-workers.
Source: The Hindu