Gig economy is here to stay & grow

Saswata Majumdar, 26, loved attending music gigs. Whenever he wasn’t working, he spent his time listening to bands. When he first landed a job at a reputable publication house, he enjoyed it for about six months. But soon, the 9-to-5 routine started to get in the way of his passion, especially attending music shows. Now, Saswata works as a freelancer, mostly writing about music and human interest stories. Besides listening to his favourite bands, he also collaborates on independent music projects with various studios.

Aparna Jana, who holds an MBA degree, once worked at an MNC. The job was draining, but the high salary made up for it. However, Aparna’s real passion lay in the world of movies. So, she left the corporate grind and pursued a career in editing. Today, she works on a project basis with various finance firms and also edits web series.

Many of us grew up hearing that 9-to-5 jobs are essential. In fact, this schedule has become almost synonymous with work life. But what if you don’t enjoy the same routine every day? What if you don’t want to work every single day? Years ago, such thoughts might have made your parents anxious. But today, it’s a different story.

The gig economy, also known as the freelance economy, has become a force in the job market. It’s a new way of working, made possible by technology and the digital age, and it’s here to stay. As Forbes puts it, “the gig economy refers to a labor market defined by short-term contracts or freelance work instead of permanent jobs. Workers are paid upon finishing each gig.”

As the modern workforce changes, more people are leaving traditional full-time, office jobs with set hours. Instead, they are turning to the gig economy, where freelance, temporary, or contract work offers greater flexibility and independence.

“The gig economy is turning the traditional 9-to-5 job model on its head. It’s offering professionals more flexibility, variety, and control over their work. The rise of freelancing and the gig economy is creating a more dynamic, flexible workforce. It’s challenging traditional notions of job security and career progression. This trend is here to stay, with professionals needing to adapt and potentially embrace multiple income streams or career paths throughout their working lives,” said Pallavi Jha, Chairperson & Managing

Director, Dale Carnegie Training India and Walchand PeopleFirst Ltd.

The gig economy gathered pace during the Covid-19 pandemic as many people lost their jobs. For instance, Khushboo Paul, 47, who was a software developer, lost her job and decided to switch to freelancing. “After 15 years at my old job, being let go during the pandemic made me realise I wanted the freedom to choose when and where I work. It took some time, but now I’m happy with freelancing,” she said.

People are drawn to the gig economy because it offers flexibility and better work-life balance. Freelancers can work from anywhere—like a car, coffee shop, or home—whenever they choose. Technology has made the gig economy possible. Tools like Skype, Zoom, and cloud-based software allow freelancers to work with clients from anywhere in the world. This flexibility and variety keep the work interesting and creative.

The gig economy has its downsides. Gig workers don’t get minimum wages, health insurance, or retirement benefits. They often have to lower their fees to get work and don’t have taxes or EPF contributions deducted from their pay. Also, they constantly need to find new gigs, which can be stressful. Despite these issues, the gig economy is growing. In 2022, 57.3 million people in the USA were working gigs, and by 2027, they are expected to make up 50% of the workforce. The global gig economy was worth USD 355 billion in 2021 and is expected to reach USD 1,864.16 billion by 2031. In India, the gig workforce is projected to grow from 7 million in 2021 to 23.5 million by 2030.

“The gig economy is reshaping the employment landscape by providing more flexible work options, reducing reliance on traditional 9-to-5 jobs, and encouraging entrepreneurial thinking. According to a report by the Boston Consulting Group, 20-30% of the workforce in developed markets is engaged in gig work. AI is further enhancing this landscape by matching freelancers with suitable projects efficiently,” said Surinder Bhagat, Founder and CEO of Gigin Technologies.

The gig economy isn’t limited to specific sectors; it includes a wide range of professions, from creative and technical services to healthcare and education. Major players in the gig economy include companies like Uber, Airbnb, as well as platforms like Fiverr, Upwork, and Freelancer. These companies have changed traditional industries by connecting consumers directly with service providers.

The gig economy is here to stay because more workers want flexible job options, and businesses need affordable ways to find specialized talent.