Well ahead the Union Budget 2024 is set to be presented tomorrow, the government released the Economic Survey 2024, detailing the state of the economy. The survey forecasts a significant expansion of the gig workforce, which is expected to grow to 23.5 million by 2029-30.
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According to the survey, gig workers will constitute 6.7% of the non-agricultural workforce and 4.1% of the total workforce by 2029-30. Data from NITI Aayog’s national labour force survey in 2020-21 showed that 7.7 million workers were engaged in the gig economy, making up 2.6% of the non-agricultural workforce and 1.5% of the total workforce in India.
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The survey highlights that while the gig economy offers employment opportunities for various groups, including youth, persons with disabilities, and women, a major concern remains the provision of effective social security for gig and platform workers. The Code on Social Security (2020) extends social security benefits to include gig and platform workers.
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Gig workers include freelancers, online platform workers, self-employed individuals, on-call workers, and creative tech talent. The global rise of the gig economy reflects a shift in employment patterns, driven by tech-enabled platforms, increased internet access supported by digital infrastructure development, demand for flexible work arrangements, and a focus on skills.
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Research indicates that participation in the gig economy is higher in developing countries (between 5% and 12%) compared to developed economies (between 1% and 4%). Most gig jobs in developing countries are in lower-income sectors such as deliveries, ridesharing, microtasks, and care services, according to a 2021 BCG report.
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The National Council of Applied Economic Research (NCAER) notes that the high demand for gig work and services is fostering entry-level job creation in Tier 2 and 3 cities. This includes part-time work for students and a safety net for those temporarily unemployed, with many workers moving to better-paying jobs after gaining experience on platforms.
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