Measuring the Gig Economy: Challenges and Issues

Abstract

The gig economy, which involves short-term, task-based jobs facilitated by digital platforms, has rapidly expanded in recent years and plays a crucial role in India’s labour market. This growth has been particularly notable since the COVID-19 pandemic, as the gig economy provides flexibility, opportunities for entrepreneurship, and wider access to job markets. It has become a key player in tackling unemployment, especially among youth and women. Despite these benefits, gig workers face significant challenges, including a lack of social security, income instability, and minimal job protections, compounded by difficulties in accurately measuring the size and scope of gig work. This paper focuses on estimating the number of gig workers in India, exploring the challenges in measurement, and offering recommendations for better data collection and policy-making. Current estimates of gig workers vary widely, from 7.7 million to 24 million, revealing gaps in understanding the gig economy. Issues such as outdated classification systems, regulatory uncertainties, and the digital divide further complicate accurate measurement. There is an urgent need to update labour survey classifications, integrate alternative data sources, and adopt international best practices. Lessons from countries like Spain, the U.S., and the Netherlands can guide improvements in worker protections and data accuracy.