In an age of increased automation and fewer jobs in industries, governments are challenged to find new services that can generate employment and absorb a whole generation of restive workers. When app-based
algorithms arrived, linking labour demand with supply, a panoply of services emerged and created mass employment through flexible work.
Gig economy growth in India
Ride-hailing, groceries and food delivery, task-based skilled labour, and healthcare and senior care services represent this new frontier in many countries, notably India, China, and Southeast Asia. NITI Aayog estimates put the number of Indian gig workers at 77 lakh in 2020–21, with a projected rise to 2.3 crore by 2030.
Risks of remaining outside regulation
There is justified concern that if gig work, as a major share of the labour market, remains on the fringes of law and regulation, the societal impact would be colossal. Based on the Chinese experience, there is worry that gig workers may not achieve predictable incomes, could suffer financial exclusion, be unable to purchase housing, and find it difficult to avail social security benefits.
Government steps towards welfare framework
It is welcome, therefore, that the Union government has made a beginning in codifying the rights and welfare of these informal workers and issued a set of proposed rules. Provisions such as registration with a universal access number and an eligibility norm of 90 days of work with an aggregator annually or 120 days with multiple aggregators to get registered are a good start. States have also come out with proposals to levy a welfare fee—Karnataka has proposed 1% to 1.5%—on each transaction to be remitted into a dedicated fund.
Skill stagnation and need for upward mobility
The challenge for the gig worker is to achieve personal growth in low-skilled segments such as food and article deliveries. Since the repetitive and identical nature of the work adds little expertise over time, the worker cannot claim an experience-based wage increase. This is a problem for the wider economy to address through schemes for skill-building in different fields.
Opportunities in care services
The healthcare and elder care sectors offer considerable scope to provide high-value services at home, made possible by certification, efficient algorithms, and decent wages.
Wage security and algorithm transparency
During the recent strike by gig workers, one of the basic demands was a minimum daily wage and algorithm reform to ensure that they were not penalised arbitrarily using tools such as disconnection from the platform.
Safety concerns over ultra-fast deliveries
One major factor high on the reform agenda has to be quick deliveries in 10 minutes, which have cost several delivery workers and other road users their lives in avoidable accidents. It should be perfectly reasonable to make 30 minutes or more the norm, with 10-minute deliveries carrying premium fees to rationalise demand.
Towards a stable social order
The plight of the gig worker is emblematic of the fragility of all informal work. The key areas that need reform for a stable social order, covering all such workers, are healthcare, education, and pensions.
