Gigeconomy online statistics4/14/2023 Those who consider gigs as their full-time job are not even employees of the company, so they do not receive any other benefits provided to employees, like health insurance, paid time off, family leave protection, etc. The absence of social security makes things worse for the gig workers. The commoditization of work means gig workers are vulnerable to fluctuation in demand. There is no scope of compassion for the workers should they fail to perform the job due to something such as falling sick or a broader downturn in the economy decreasing business. Gig workers are not covered under standard employee contracts. The gig economy holds serious challenges in upholding labor rights. Compared to when cars stand idle in traffic, carpooling and car sharing contribute to a lower carbon-footprint.īut all is not hunky-dory about the gig economy. There are also other benefits of ridesharing leading to less traffic congestion (less time) and other motor vehicle accidents. Alcohol-related motor vehicle accidents and traffic congestion has also come down. For example, after the introduction of taxi services by Uber and Ola, taxi fares were reduced in major cities in India. The lower price of services associated with the gig economy has generated consumer surpluses which can be spent on other sectors, with a multiplier effect on income and employment generation. There is a spillover effect on other sectors. There are no barriers based on caste, religion, gender, and location. Women comprise more than a third of 15,000 users of the digital platform Souktel in the West Bank and Gaza region, but only 19% of the entire labor force in the same area. Most of the workers working in the food delivery business in South East Asia are women workers. Women workers are gaining, and the gig economy is resulting in gender income equality. The rating systems on platforms for task-based services also ensure that only the most standardized and efficient suppliers get rewarded in the long-run. As the job performed is outcome-based, the risks associated with moral hazard or asymmetric information are mitigated. As gig economy usually operates on the basis of ‘standardized’ outcomes. Managers are also happy to recruit in a gig economy. In India, for example, before the advent of the digital world, job seekers regularly waited in line ‒ sometimes all day ‒ to register at the national employment exchanges for their job search. The gig economy has helped to reduce information asymmetry associated with job search costs. The platform-enabled gig economy can accommodate a large number of buyers and sellers, and there is absence of entry barriers. For example, Uber which is generally known as a taxi service aggregator also has Uber Eats which is a food delivery and online take out service App. Similarly, the aggregators may provide more than one type of service. A food delivery guy can work for both Swiggy and Zomato, and yet can drive Uber during some other time. As the work is job-specific, workers using these platforms have the flexibility to work for more than one contractor. These types of jobs are usually platform enabled. Delivery boys, cleaners, consultants, bloggers, etc., are all part of the gig economy. There are now close to 15 million gig workers in India. At a time when fewer 9-5 jobs are getting created or disrupted because of war and pandemics, the spread of gig economy is a welcome move. All they require is a computer/mobile handset that will connect them to the outside world. There are millions of persons like Kaushik who cares less about war, pandemics and supply-side glitches. He earns handsomely, an hourly wage rate of $35. He is software professional who works from home and is quite happy about it. Although organised sector employment is taking a hit the world is noticing a paradigm shift from 9-5 jobs to a newfound type of jobs which is created by the gig economy. With economic growth slowing, and the war and pandemics causing supply-side glitch, the fear of unemployment will also increase. The present day Consumer Price Index (CPI) is inching towards the 7% mark. Inflation numbers for India are no different. In March 2022, the US, the largest economy in the world, recorded a 41-year high inflation of 8.1%. Most sources of data are suggesting a higher inflationary regime. Worldwide inflation numbers are on the rise. The continuation of the Russia-Ukraine war is raising the fear of an imminent stagflation (a combination of inflation and unemployment led by a low growth).
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