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Gig Economy to Boost Employment of Indian Women in Formal Sector: Study

Posted on July 27, 2021 by admin1  909

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Recently, the United Nations Development Programme(UNDP) and the Federation of Indian Chambers of Commerce & Industry (FICCI ) with support from the government of Japan conducted a study titled  “The Future of Work for Women in the Formal Sector in India”.

Major Findings 

  • Alternative work arrangements: The Alternative work arrangements in the gig economy have the potential to absorb more women and increase their participation in the workforce.
    • Around 57% of the surveyed firms agree that the gig economy will itself expand and boost women’s job prospects because it is based on flexible, temporary or freelance jobs, often involving connecting with clients or customers through an online platform.
  • Use of digital technology: A boost in the use of digital technology and increased acceptance of virtual working for sales and distribution jobs which could open opportunities for women to enter fields where interactions are managed through apps and phone calls.
    • In high-skill and low-skill jobs, the impact of technology is gender-neutral. 
  • Key sectors: The study also reflects that some key sectors that are likely to see an increase in women’s employment are health and pharmaceuticals (by 59 per cent), electrical and electronics (by 44 per cent) and fast-moving consumer goods (perishable goods) industry (by 41 per cent).
  •  Reskilling: Around 73 per cent of the respondent firms agree that reskilling, specifically in the formal sector, is likely to play a crucial part in shaping the work of tomorrow. 
  • Suggestions 
    • The study gives hope for a better future with more employment opportunities for women. 
    • However, concerted efforts are needed to understand how new technologies are impacting specific industries and to address challenges facing women in entering or remaining in the workplace.
    • To safeguard the interest of both employers and employees, some labour laws and regulations are required in the changing world of work.
    • The adoption of new technologies could create better opportunities for women.
    • Re-skilling will be crucial to expand opportunities for women in the formal sector.

Gig economy

  • The gig economy is a labour market characterised by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.
    • It involves the exchange of labour for money between individuals or companies via digital platforms that actively facilitate matching between providers and customers, on a short-term and payment-by-task basis.

Beneficial to the employee

  • Independent workers select jobs according to their interests.
  • Improve work-life balance.
  • Beneficial to women, especially in the case of maternity time.
  • Reducing travel and energy costs.
  • Retired people get the opportunity to be independent.
  • The employee can learn multiple skills and explore more ways to earn money.

Beneficial to Employers

  • Businesses can save resources in terms of benefits( provident fund, paid leaves),office space and training.
  • They have the choice to hire specific experts for their projects.
  • This is cost-effective for the employer as hiring regular employees is time and cost consuming.

Challenges to Gig economy

  • Lack of corporate culture and team spirit, in the employees.
  • Inconsistency in quality of work.
  • Workers need to be well versed with the latest technology and trends.
  • Lack of social security and other benefits like Pension, gratuity etc. can impact social relations.
  • Bank refused to give credit to an independent employee as compared to a formal employee.
  • Confidentiality of the document of the workplace is not guaranteed here.
  •  Union formation among the gig workers is difficult.

Source: BS

 
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