The Rise and Rise of the Gig Economy in the Next Billion India

The gig economy is real and it’s here! The debate around job creation has always been topical, and amid this, India is seeing tremendous growth and the huge potential of blue-collar jobs in the gig economy. These jobs are mostly independent, on-demand and time-bound in nature, as opposed to a permanent position. Jobs like that of drivers or delivery partners fall under this category, which also seems to be the most promising area in the semi-formal ecosystem. The findings from our Blue-Collar Jobs and Migration trends report point to the various factors behind this shift.

Over 66% of the total jobs will be in the gig economy

Our findings indicate that over 14 lakh jobs of the total 21 lakh blue-collar jobs in the year 2019-20 will be in the gig economy. This essentially means that these jobs make up for over 66% of the total jobs in this financial year, which is a huge chunk. The on-demand jobs are here to stay, and it can already be seen in the way taxi aggregating apps, food delivery apps or e-commerce companies have tremendously grown in the recent past.

Come to think of it, isn’t booking a cab or ordering food part of your everyday routine? Where would these companies be without sufficient workforce to execute it? Since this is the ground force taking care of the last mile, it is only obvious that they are likely to grow with this sector.

These are the highest-paying and highest in-demand jobs

As the trend indicates, the jobs in the gig economy are going to be the highest in demand in the time to come. So, they also happen to be the ones which will pay more out of all the other blue-collar jobs. Factors like high penetration of technology and putting customer’s need a click away are continuously contributing to the high demand of these job roles. Simply put, doesn’t everyone want to stay relevant in this fast-changing world?

Our research indicated that there’s a demand of over 8 lakh delivery partners in 2019-20, which is the highest, followed by driver partners, which is close to 6 lakhs. These are the top two sought-after jobs in this space, followed by security, facility management, etc.

Flexibility, incentives, better pay, closer to home – major reasons for the big switch

There are many reasons due to which the job market is seeing a major shift towards the gig economy as opposed to the traditional job roles. For basics, they are high in demand and this is why they are the much better-paying jobs. Not only that, but the pay structure also suits them better. For instance, the deductions are likely less here and so, the in-hand salary is better too. The other incentive is the flexible nature of these jobs. These are on-demand jobs, which give them the status of a micro-entrepreneur. They can work according to their own schedule as opposed to working with stringent timings. This sometimes allows them to do more than one job to fulfil their needs.

Their migration pattern also indicates that they often migrate to the big city within 200kms for these jobs, courtesy of the companies’ growing reach in tier-2 cities as well. Also, there are often incentives over the number of rides or the number of deliveries they do, which combined with other factors, is motivation enough for this switch.

So, do you think the gig economy has a much higher untapped potential to explore or the traditional roles will evolve and catch up in the times to come?

We are excited about the limitless opportunities in the next billion India. If this topic piqued your interest, you should stay tuned because we have so much more coming your way!

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