Author- Kashika Goel, Shiv Nadar International School
Dehradun: Over the last decade, the gig economy has been the most revolutionary change in the global labor market. Triggered by the internet and work culture, it has transformed how people make a living. Ranging from app developers and advisors to ride-sharing drivers and freelancing authors, the gig economy encompasses a variety of workers providing services sporadically or by the piece. As the nature of work is changing, so too is the future of the gig economy, with promise but with no less pressure for reform and regulation.
Gig economy is an example of how people do flexible, short-term jobs instead of full-time jobs. The “gigs” include everything from delivering food or groceries to coding software, teaching online, or offering legal advice. The workers are typically known as independent contractors, a definition that implies that they do not receive full-time employee benefits and protections such as health care, vacation, or pension.
The evolution of the mobile era and the internet has brought in front of us the door of gig work like never before. Gig economies such as Uber, Airbnb, Upwork, and TaskRabbit have opened the doors for millions of individuals to become employable with a smartphone and an internet connection.
Its greatest advantage is the flexibility of gig work. Some like the autonomy to set their own schedule, choose their projects, and work from anywhere. For others, it’s a way to supplement full-time work. For others, most importantly those who are struggling to find stable work, the gig economy is a lifesaver.
Besides, businesses enjoy lower labor costs. By engaging contractors as opposed to permanent workers, firms save on benefits, office space, and long-term commitments.
Even with its benefits, the gig economy is not without its drawbacks. The most compelling of these is job insecurity. Gig workers frequently enjoy unpredictable income, little workplace protection, and no safety net in the event of illness or injury.
The establishment of independent contractors among workers has also become a contentious issue across most nations. The judicial loophole makes it possible for businesses to escape such responsibilities as minimum wage, unemployment benefits, and workers’ compensation. Many gig workers are thus exposed, particularly when there is economic recession or crises such as the COVID-19 outbreak.
Another problem is control through algorithms. Gig platforms frequently employ black-box algorithms to allocate work, set pay levels, and even suspend workers without much explanation or appeal. This has created concerns regarding equity, openness, and workers’ rights in a virtual labor market.
As the gig economy continues to mature, several major trends will influence its future:
Regulators are starting to intervene to rectify the unbalances of gig work. In the United States, California signed Assembly Bill 5 (AB5), which was designed to reclassify most gig workers as employees. In the EU, proposed legislation aims to improve conditions for platform workers, such as more transparent contracts and better protections. Coming regulations could force companies to offer minimum wages, health insurance, and other benefits, or at least to contribute to portable benefit systems that workers carry with them from gig to gig.
Technology, which fueled the gig economy, will also drive its transformation. Artificial intelligence and automation can displace some kinds of gig work, particularly those with repetitive or low-level tasks. Yet new gigs are also likely to be created, such as AI system management gigs, content moderation gigs, or digital creative gigs. Platforms themselves could become more decentralized or worker-owned, utilizing blockchain or cooperative schemes to promote transparency and justice.
With the increasing popularity of gig labor, particularly among younger generations, expectations regarding the quality of employment and the rights of workers are shifting. Workers are unionizing, demanding better terms, and creating digital labor unions. An increasing number of people demand platforms that deliver flexibility in balance with decent treatment. Businesses that shift in this direction could find a more loyal and engaged workforce.
To ensure the increasing independent workers are well-supported, governments are seeking to incorporate gig workers into traditional social safety nets or establish new systems specific to flexible jobs. This may involve universal basic income, health subsidies, retirement savings plans, and digital platforms for tax and benefit tracking.
