Gig Economy

• 25 Feb 2019

Why is it in News?

In a recent survey it has been found that 85% of the companies are open to hiring people on contract basis.

What is a Gig Economy?

A gig economy is a work environment where organizations hire temporary workers or freelancers instead of full-time long-term employees.

How has Gig Economy evolved?

• The main reason is the emergence of the digital economy worldwide. Here, workforce is highly mobile and work can be done from anywhere, anytime. This means that you need not reach at the location of the organization to do the job. This gives flexibility to the workforce.
• Sometimes there is seasonal demand for some products, so part-time workers come to the aide of the companies.
• Due to cost cutting, organizations resorts to part-time workers as they are not provided with social security net which is saving for the company.

Problems with Gig Economy:

• Part time workers or freelancers don’t enjoy the employment rights which are usually given to permanent employees of the organization.
• Social security net (Pensions, Insurance) etc. are usually not provided to part-time workers.
• These part time workers are not provided the platform for training so that their skills can be upgraded.
• Lack of security/ stability of jobs.