Gig workers face income volatility, says Survey, Pg13

Key Highlights:

• The Economic Survey highlights significant employment growth in India, citing Periodic Labour Force Survey results indicating a fall in unemployment.
• The survey raises concerns about income volatility and lack of financial inclusion among gig workers.
• The gig economy has grown from 77 lakh workers in 2020-21 to 120 lakh workers in 2024-25, a 55% increase.
• Approximately 40% of gig workers report earnings below ₹15,000 per month.

Detailed Insights:

• Structural reforms like deregulation, GST 2.0, and state labor reforms have contributed to increased labor force participation and employment growth.
• The implementation of Labour Codes is expected to support formal employment and improve security for women and gig workers.
• The gig economy's structural growth involves transitioning informal jobs into ecosystem-integrated roles in sectors like delivery, ride-sharing, and freelancing.
• Platform algorithms controlling work allocation, performance monitoring, and wages raise concerns about potential biases and worker burnout.
• Gig workers often face challenges related to 'thin-file' credit access, limiting their financial opportunities and stability.

Key Concepts Involved:

• Gig Economy: A labor market characterized by short-term contracts or freelance work as opposed to permanent jobs.
• Labour Codes: A set of comprehensive laws aimed at reforming and consolidating labor regulations in India.
• Financial Inclusion: The availability and accessibility of financial services to all individuals and businesses, regardless of income or social status.