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LATEST NEWS UPDATES | The challenges of Gig-Economy -Ashish Kumar Singh & Akash Singh

The challenges of Gig-Economy -Ashish Kumar Singh & Akash Singh

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published Published on Jul 22, 2022   modified Modified on Jul 23, 2022

-CounterCurrent.org

According to a NITI Aayog recent report titled ‘India’s Booming Gig and Platform Economy’ India’s gig workforce, estimated to be at 77 lakh in 2020-21. It is expected to go up to 2.35 crore by 2029-30. Gig worker are defined by Niti Aayog as those engaged in livelihoods outside the traditional employer-employee arrangement. Gig workers can be broadly classified into platform and non-platform-based workers. Platform workers are those whose work is based on online software apps or digital platforms such as Ola and Uber. Non-platform gig workers are generally casual wage workers and own account workers in the conventional sectors, working part-time or full time. A gig economy is a free market system that provides short term contracts to independent workers.

From the perspective of companies, hiring such workers is more beneficial as they do not have any political or union connections with regards to their jobs, making them nearly unaffected by any political movement. The formation of workers’ union has been important as it gives them collective voice and bargaining power. India has seen what trade unions are capable of. Therefore, it is not surprising that instead of hiring employees, companies would prefer contractors.

Another notable feature of the capital markets are that they provide too little or conditional capital to entrepreneurs forcing them to finance themselves and bear the risk of failures. Low entry barriers as well as flexible working hours are the characteristics of gig economy that provide insurance against entrepreneurship related income volatility.

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CounterCurrent.org, 22 July, 2022, https://countercurrents.org/2022/07/the-challenges-of-gig-economy/?fbclid=IwAR2P-3Cyx6iPyUNQ32faSXFtFFBfjKkwH6E1lKvllBWU743v7aSqAQ0kQ5s


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