Hello friends welcome in SONU LIVE in this post I’m going to tell you about GIG ECONOMY and GIG ECONOMY HAS HUGE POTENTIAL TO SOLVE THE PROBLEM OF UNEMPLOYMENT IN INDIA.WHAT ARE THE OTHER EXPECTED OUTCOMES AND WHAT ARE THE CHALLANGES?
INTRODUCTION
Economy which is characterized by short term contracts or freelance work instead of permanent job is known as gig economy.
EXPECTED OUTCOMES
- Job creation:
- The gig economy creates a plethora of flexible work opportunities, catering to a diverse range of skills and educational backgrounds. This can bring millions, especially youth and women, into the workforce, mitigating the high unemployment rate.
- Income generation:
- Gig work provides an alternative income stream for individuals seeking additional income or those facing job losses in traditional sectors. This can contribute to poverty reduction and improve overall living standards.
- Entrepreneurship boost:
- The gig economy fosters an environment for entrepreneurship and innovation. Platforms like Zomato and Swiggy have empowered countless individuals to become micro-entrepreneurs, managing their own delivery businesses.
- Skill development:
- Gig work often involves acquiring new skills and adapting to changing demands. This can enhance the overall skillset of the workforce, making them more employable in the long run.
- Increased productivity:
- Businesses benefit from access to a wider talent pool and the flexibility to scale their workforce up or down as needed. This can lead to improved efficiency and productivity.
Challenges:
Job insecurity:
- Gig work often comes with irregular income, no fixed hours, and limited benefits like health insurance or paid leaves. This can lead to financial instability and insecurity for workers.
Lack of social protection:
- Gig workers are often not covered under traditional labor laws, leaving them vulnerable to exploitation and unfair treatment. This necessitates robust social security frameworks for gig workers.
Digital divide:
- Unequal access to technology and the internet can exclude a large portion of the population from participating in the gig economy, exacerbating existing inequalities.
Lack of regulation:
- The gig economy is still largely unregulated in India, creating ambiguity regarding worker rights and employer responsibilities. Clear regulations are needed to ensure fair practices and protect both workers and businesses.
Taxation complexities:
- Determining income and applying taxes for gig workers can be complex, leading to confusion and potential tax evasion. Streamlined taxation systems are necessary for the gig economy to flourish.
- Lack of permanence in employment (job insecurity).
- No permanent human resource for any company.
- There is no emotional bond between employers and employees.
- Moonlighting may reduce the efficiency level of workers.
- Moonlighting – Act of employ relating to doing additional job say in night shift with a regular job say in day shift.
REASONS FOR GROWTH ON GIG ECONOMY IN RECENT TIMES ARE-
Suits digital age and modern lifestyle.
Saves cost for the company.
Suitable for first time job required by housewives, students, and old aged persons.
Scope of extra earnings for efficient workers.
Despite these challenges, the potential of the gig economy to address unemployment in India is undeniable. By addressing the challenges through comprehensive regulations, social security measures, and digital inclusivity initiatives, India can unlock the true potential of this dynamic sector and create a more prosperous future for its workforce.
Remember, the gig economy is still evolving, and its long-term impact on the Indian job market remains to be seen. However, with careful planning and proactive measures, it has the potential to be a powerful tool for tackling unemployment and empowering individuals across the nation.
Read more-https://sonulive.in/blue-economy-upsc/