In this article, we will discuss Gig Economy’s Exponential Growth. So, let’s get started.
Reasons Gig Economy’s Exponential Growth
- In the digital age, the worker need not sit at a fixed location—the job can be done from anywhere, so employers can select the best talent available for a project without being bound by geography.
- The millennial generation seems to have quite a different attitude to careers. They seek to do work that they want to do rather than have careers that may not satisfy their inner urges.
- Heightened migration and readily available job training.
Associated Challenges
- Unregulated Nature: The gig economy thrives largely unregulated, therefore workers have little job security and few benefits.
- However, few argue that the gig economy in India with respect to workers not getting any social security, insurance, etc. is an extension of India’s informal labour, which has been prevalent for a long time and has remained unregulated.
- Need for Skills: A worker needs to be skilled enough. Unless a person is extremely talented, his bargaining power will necessarily be limited.
- While companies routinely invest in training employees, a gig-economy worker will have to upgrade his skills on his own at his own cost.
- Demand-Supply Mismatch: There are already many more potential online independent workers than jobs, and this demand-supply mismatch will only get worse over time, depressing wages.
