Is the traditional 9-to-5 workday becoming a thing of the past? The rise of the gig economy, with its flexibility and agility, is reshaping how we work and earn. As global trends show exponential growth, India, too, is gearing up to leverage this shift for economic and social transformation. Moreover, companies are increasingly focussing on gig workers, and freelancers to create a more flexible and agile workforce. So, the Gig economy, which had a market size of $556.7 Bn in 2024, is expected to reach $1,847 Bn by 2032, according to a report.

The Gig economy would be more than triple by 2032 worldwide compared to 2024, according to a report by the World Economic Forum. Technological advancement and digital platforms have enabled freelancers to connect with customers for quick services like ride-hailing, food delivery, and vacation rentals. It is a growing segment worldwide, bringing both economic productivity as well as employment, it said.

Rise in demand for gig workers

There are between 154 Mn and 435 Mn online gig workers globally at present, which is 4.4% to 12.5% of the global workforce, according to a report by the World Bank. “Online gig work is expanding, accounting for up to 12% of the global labour force and is a growing source of income for millions. The demand for online gig workers is rising faster in developing countries than in industrialised countries,” the report said.

Further, a report by Upwork’s Freelance Forward said the total number of freelance and gig workers was on rise with 38% of the American workforce, a total of 64 Mn professionals were involved in some kind of freelance work.

The growth of Gig economy has a significant impact on the US and other developed countries. The Freelance Forward report showed that freelancers contributed around $1.27 Tn to the US economy in annual earnings in 2023. 

From a global perspective, research from Staffing Industry Analysts estimated that the Gig economy generated $3.8 Tn in 2022.

Earnings may vary, depending on skills and area of expertise of the gig workers. Data from the Bureau of Labour Statistics and median earnings on Upwork in 2024 identified some of the highest-paying freelance jobs in the world including

• media buyer ($50 to $100 per hour), 
• public relations manager ($50 to $100 per hour), 
• business consultant ($28 to $98 per hour), 
• cybersecurity developer ($40 to $90 per hour), and
•  financial consultant ($30 to $75 per hour).

Opportunities & challenges of gig working 

Gig work offers both opportunities and challenges. No doubt, it is a source for income generation, especially for people living in developing nations, where a majority of them have less productive, low-quality, and often informal jobs. Gig working provides flexibility to neglected groups, such as women, migrants, youth, low-skilled workers, and people with disabilities due to its virtual and often temporary nature. It offers opportunities locally to build digital skills and increases income. 

However, it raises a few questions about the protection of consumers and gig workers. The problem is to balance innovation with a fair deal for gig workers, the report by the World Economic Forum pointed out.

Gig platforms face a lot of challenges in establishing a viable business model, and opportunities for growth in the long run. “Gig workers, like most other informal sector workers in developing countries, are often outside the purview of labour regulations,” said the World Bank report.  

The majority of the gig jobs have uncertain and uneven income streams due to fluctuations in demand with no clear career pathways. Many gig workers are not protected against unfair practices, abuse, or injuries while working as they are not considered regular employees. They are not entitled to benefits, such as health insurance, retirement benefits, house allowance, and paid leaves. They face problems in managing taxes as well. The transient nature of gig work can often lead to a sense of insecurity and unpredictability.

Gig work also raises challenges for managing the data security and privacy of workers. There is a need to map and track regional platforms that offer gig works in languages other than English for better outcomes, it said.

India’s booming Gig economy 

The contribution of the gig economy to India's Gross Domestic Product (GDP) is estimated to be substantial, with the potential to add 1.25% to GDP by 2030 and create 90 Mn jobs in the long run, according to a white paper by the Forum for Progressive Gig Workers published this year.

The Gig economy market is expected to grow at a compounded annual growth rate of 17% to reach a gross volume of $455 Bn by 2024, said the white paper published on ‘Shaping the Future of Work: Empowering India’s Gig Economy’ last month, underlining the positive impact of the gig economy, including alternate revenue sources for workers, scope for earnings for women, and avenues for workforce integration.  

The gig economy supports sectors like e-commerce, transportation, and delivery services, among others in the country.  

“The report presents an initial effort to analyse the evolving dynamics between large companies and gig workers. It is a valuable starting point for understanding the challenges and opportunities within this sector,” it said. 

Meanwhile, a report titled ‘India's Booming Gig and Platform Economy’ estimated that about 7.7 Mn workers were engaged in Gig economy in 2020–21. They constituted 2.6% of the non-agricultural workforce or 1.5% of the total workforce in India. 

The gig workforce is expected to expand to 23.5 Mn workers by 2029–30, said the report released by NITI Aayog this year. Gig workers are expected to form 6.7% of the non-agricultural workforce or 4.1% of the total livelihood in India by 2029–30. 

About 47% of the gig work is in medium-skilled jobs, about 22% in high skilled, and about 31% in low-skilled jobs presently in India. The trend, according to the report, shows the concentration of workers in medium skills is gradually declining and that of the low-skilled and high-skilled is rising. 

India to redefine gig working environment by 2025

To explore solutions for providing social security protection to gig workers, the Labour Ministry met with representatives from various platform workers’ associations in October 2024. It was part of the government’s efforts to establish relevant provisions by 2025 and revolved around health and social securities. 

The ministry has set up a committee to create a framework that would ensure social security and welfare benefits for gig and platform workers. The committee would collect input from various stakeholders to develop an overall approach that may include deducting a small contribution per transaction or imposing a cess, to fund social security benefits.

Aggregators would be instructed to register the gig workers on the e-Shram portal which would generate unique IDs for them. 

As the gig economy expands, balancing innovation with worker security will be key.