The Gig is Up, Old Timers

Context: Post Covid world reforms must go beyond public spending and macro remedies.

Transitioning towards Gig Economy

• Transitioning towards robots and contract labour: has already begun in factories and offices.
• Online retailing is driving gig employment: in logistics, warehousing and deliveries
• Rising trend of shared mobility: with rise in demand for personal transport.

• Office jobs transforming to gigs and contract work.

• Banking and financial sector’s shift: towards UPI and Bharat QR code.

• Online education and healthcare services.

Post Covid Gig Economy

• De-personalisation and corporatisation of gig economy and domestic services.

• Incomes will depend on hours put in, or measurable output.

• Super-specialisations and high-skill work: will be in huge demand.
• Midskill, mid-level office jobs will be automated: or paid on a contractual basis whereas low-level, low-skill jobs will largely be gigs. 
• The average non-IIT engineer or arts graduate: will earn less than Ola drivers or Flipkart delivery personnel.

Way Forward

• Need for new laws on gig employment that empower workers to manage their savings and social security contribution.
• Abandon rent controls and enable short-term hiring of office or residential spaces, with easy repossession rules.

• WFH model will restrict office and residential demand to short-term usage-based rental charges.

• Need for supporting reforms in terms of labour law changes to enable off-and-on social security contributions.
• EMIs for or home and auto loans, devised for steady salary earners: must be replaced with flexible payment schemes.
• In the post-Covid world, focus on micro remedies when the big reforms are micro. 

Conclusion: Accelerate gig economy by enabling productive learning and income opportunities, and converting the State from being a part of the solution instead of being the problem.