Source | Linkedin | Prabhakar Mundkur | Mentor Capitalist & Thought Leader
Counting the Gigs in the Gig Economy
For the last couple of years, the current government has been under pressure on employment rates which are seemingly lower than before. But often the reality on the ground doesn’t seem to always match.
Over the last few decades, the Indian economy itself has changed. Once upon a time a large manufacturing and agriculture-led economy, the service sector grew by leaps and bounds, and today accounts for 53.66% of India’s GDP. It also accounts for the largest number of jobs in the economy. The industrial sector is now in the second spot followed by agriculture. This is the route that was taken by the developed economies as well.
Enter a new demographic group called the Millennials – the focus for every marketer today. By one calculation India has the largest millennials in the world which account for about 400 million. These are people born between 1980 and 2000. And millennials are at least partly responsible for having contributed to the gig economy. A gig economy is defined as ‘a labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs’. ( Oxford Dictionary). An unconventional work approach from the millennials, combined with the digital invasion and hectic schedules in the private sector might well have been responsible for creating the gig economy. According to one Pay Pal report, one in every 4 freelancers in the world is from India. “India is today the largest freelancer market in the world and poised for growth,” says Narsi Subramanian, Director Growth, PayPal India.