look news india
In this era of modern digital era and technological revolutions, a huge change is being seen in the methods of employment, in which the trend of ‘Gig Economy’ i.e. freelance and project-based work has increased rapidly. In today’s time, there has been a huge increase in the number of youth working in food delivery, cab driving, online services and various digital platforms, which many people are calling a great option for modern employment. However, on the contrary, economic experts, policy makers and labor economists in India and abroad have expressed strong objection that the gig economy can never be considered a traditional, safe and permanent solution to permanent unemployment. In a developing country with huge demography like India, where the army of youth is continuously increasing, the concerns regarding the lack of formal and secure jobs are increasing. In today’s detailed and analytical article, we are going to discuss why the country’s employment crisis cannot be solved only by relying on the gig economy and why regular jobs in the country are most important for the economy.
The fundamental difference between traditional formal jobs and the gig economy
Experts who have a deep understanding of the employment market clearly believe that there is a world of difference between a regular job and the work available under the gig economy. In a traditional formal job, an employee gets a fixed monthly salary, provident fund (PF), gratuity, medical insurance, paid leaves and many basic social security facilities like job security, which secure the future of him and his family. In contrast, youth working as gig workers or freelancers have no job security of any kind. They neither get any guaranteed salary nor any kind of financial support in case of illness, accident or old age. They are able to earn money only according to the number of hours they work on the platform or the number of orders they fulfill. This is why when the gig economy is presented by policymakers as an alternative to unemployment, experts consider it a dangerous illusion, as it is completely incapable of providing long-term economic stability to workers.
Why are serious concerns regarding lack of formal jobs increasing in the country?
India is one of the youngest countries in the world, where every year crores of youth complete their higher education and enter the job market. To absorb this huge youth power of the country, it is very important to create regular and formal jobs in sufficient quantity in manufacturing, corporate, banking and government sectors. But if we look at the economic data and employment survey of the last few years, it becomes clear that the opportunities for good and permanent jobs are not being created as fast as the number of graduate youth is increasing. Due to this imbalance of demand and supply, even highly educated youth are being forced to work as delivery boys, ride-sharing or other gig work, which some people may see as employment, but in reality it is a serious problem of ‘under-employment’ i.e. getting work at a lower level than the qualification. When the most talented youth of the country do not get regular and respectable employment as per their potential, the human capital of the country is not utilized properly.
Big challenges of gig workers’ rights, labor law and social security
As the scope of gig economy is expanding rapidly in India, the attention of the government and various organizations is now being attracted towards the rights and safety of these workers. The process of making policies to bring gig workers under the ambit of social security has been started in many states and at the central level, but the situation at the ground level is still not very satisfactory. Big companies running online platforms often treat these workers as ‘partners’ or independent contractors rather than as employees, due to which they are deprived of even the minimum benefits of labor laws. Between long working hours, algorithmic control, sudden cuts in incentives and health risks, the future of these youth remains uncertain. If the country’s economy has to remain strong and inclusive in the long run, instead of relying only on gig-based platforms, permanent and formal employment opportunities within the country will have to be increased on a large scale, so that every citizen can live a dignified life.