Daily Answer Writing And Mentorship Program


Q: The Gig economy represents a fundamentally regressive future for employment with modest pay, long working hours, ephemeral jobs, and no social security. Analyze.                                    (15 Marks, 250 Words)

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Approach to the answer:

Decode the Question: This question expects the student to critically evaluate the gig economy as a future model of employment, examining its potential negative aspects including low wages, excessive working hours, unstable job nature, and lack of social security benefits. You should provide a thorough analysis of these factors within their response.

Introduction: Briefly introduce the Gig economy, also try to provide some data.

Body: Highlight why the Gig economy is regressive for employment, how it significantly contributes, and initiative taken by government to address the issues.

Conclusion: Summarize the topic and conclude with a way forward.


Answer: Gig economy is defined as a free-market system which is characterized by temporary, short-term contractual jobs and freelance work, on a project-to-project basis such as Uber, Ola, Swiggy, and Zomato.


The Global Gig Economy Index report ranked India among the top 10 countries with rapidly increasing number of freelancers.


Gig economy is regressive for employment due to following reasons:

  • Low wages: Gig workers often receive modest pay, which can make it challenging to achieve financial stability and meet basic needs.
  • Long working hours: Gig workers may need to work extended hours to earn a sufficient income, leading to potential burnout and work-life imbalance.
  • Temporary jobs: Gig jobs are often temporary or project-based, lacking long-term stability and job security.
  • Lack of social security: Gig workers typically lack access to benefits such as healthcare, retirement plans, and unemployment insurance, leaving them vulnerable.
  • Limited worker rights: The gig economy may bypass labor laws and protections, leaving workers without legal safeguards or recourse.


But gig economy also provides significant benefits:

  • Diverse income streams: Gig workers can tap into multiple gigs, diversifying their income sources and potentially increasing their earning potential.
  • Flexibility: Gig work offers flexibility in terms of working hours and location, allowing individuals to balance work with personal commitments.
  • Work-life balance: The flexibility of gig work can enable better work-life balance, giving individuals more control over their schedules and personal lives especially for women.
  • Job opportunities for marginalized groups: Gig work can offer employment opportunities to individuals who face barriers in traditional job markets, promoting inclusivity.


Initiatives taken by Government:


  • The Code on Wages, 2019, provides for universal minimum wage and floor wage across organized and unorganized sectors, including gig workers.
  • The Code on Social Security, 2020, recognizes gig workers as a new occupational category. It asks employers to create funds to provide social security to Gig workers.


Though the Gig economy has led to the transformation of work culture, various issues need to be addressed. There are examples of collaboration between government and private which can be scaled up e.g., Uber partnered with Ayushman Bharat to facilitate free healthcare for its workers. In addition, explicit rules for gig workers should be formulated to provide them social security.