| Abstract: | The sharp increase in the gig economy is one of the major changes that have characterized modern labour markets across the globe. The increasing gig economy is attributing to unprecedented labour market changes through the contribution of technology and digital platforms to changing the relationships between employees and employers. This paper aims to examine the impacts of the gig economy on the changing labour markets, with special emphasis on developing countries that include India. The research seeks to examine and discuss the impacts that the gig economy has brought to changing income, labour flexibility, and the skills that are used within the economy. Whereas the gig economy has presented various income opportunities and increased flexibility within the economy and empowered the youthful population and women to contribute to the economy, there are various concerns that include workers’ rights and job security. The main aim of the research is to emphasize the importance of critically assessing the economic consequences of the gig economy and the part it plays in shaping the labour market. The research paper uses a descriptive-analytical research strategy based on secondary data retrieved from official documents of governments and international agencies, and research journals and policy papers. The paper seeks to evaluate the pros and cons of the gig economy, including its contribution to employment generation, informalization of labour, and the income of workers engaged in gig jobs. The paper points to the duality of the gig economy in promoting innovation and acting as a cause of job insecurity and inequality. These findings imply that though the gig economy is responsible for generating short-term employment and ensuring efficiency, it is implicated in the escalation of the shift from standard employment relations to non-standard employment relations. This, in essence, has undermined the relevance of labor laws and increased income insecurity for a substantial portion of the workforce. Additionally, the paper submits that the existing labor laws and social security systems are not sufficiently effective in dealing with the consequences of platform-based employment. As such, a serious policy intervention is required for ensuring inclusive growth, social security, and good working conditions for the gig workforce. Furthermore, the paper concludes that the gig economy is not a mere temporary labor market trend but a structural shift requiring a rethinking of labor market policy. |
