SYLLABUS SECTION: GS II (ECONOMY)
WHY IN THE NEWS?
According to the study release by Niti Aayog the number of workers engage in the gig economy,
This is estimate to be 77 lakh in 2020-21 and is expect to grow to 2.35 crore by 2029-30.
WHAT IS THE GIG ECONOMY?
- A gig economy is a free market system in which temporary positions are common and organizations contract with independent workers for short-term engagements. It undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career.
- Self-employers, freelancers, independent contributors and part-time workers are includes in Gig economy workers.
- According to report gig workers are classifies into platform and non-platform-base workers.
- Platform workers are those whose work is base on online software apps or digital platforms.
- Non-platform gig workers are generally casual wage workers and own-account workers in the conventional sectors, working part-time or full time.
- The report notes that at present, about 47% of gig work is in medium skill jobs, about 22% in high skill, and about 31% in low skill jobs, and the trend shows the concentration of workers in medium skills is gradually declining and that of the low skill and high skill is increasing.
- In 2020-21, the gig workforce constitute 2.6% of the non-agricultural workforce or 1.5% of the total workforce in India, by 2029-30, gig workers are expect to form 6.7% of the non-agricultural workforce or 4.1% of the total livelihood workforce in India
RECOMMENDATIONS BY NITI AAYOG
- Introducing a ‘Platform India initiative’, on the lines of the ‘Startup India initiative’.
- Access to institutional credit may be enhanced through financial products specifically designed for platform workers and those interested to set-up their own platforms.
- It has suggested linking self-employed individuals to platforms so that they can sell their produce to wider markets.
- Gender sensitisation and accessibility awareness programmes for workers and their families, extending social security for gig and platform workers in India, and conducting a comprehensive study on key aspects of the platform economy.
Read more: UPSC CURRENT AFFAIRS
SOURCE: THE HINDU