Hiring surge in gig economy: 1 million jobs to boost this festive season

As the festive season approaches, India's gig economy is set to create around one million jobs, driven by demand in e-commerce, retail, and logistics, with a notable rise in female participation

As the festive season approaches, various sectors are expecting a surge in consumption demand, leading to an increase in hiring, predominantly in the gig economy.

A report by The Economic Times, quoting NLB Services, said that around one million jobs could be created during this festive period. Industries including retail, hospitality, e-commerce, logistics, consumer goods, banking, financial services, and insurance (BFSI) are anticipated to ramp up hiring. Notably, the e-commerce sector is projected to experience the most significant demand, with a 22 per cent increase in hiring compared to last year, said CEO of NLB Services Sachin Alug, as mentioned by the report.

 

Motivations behind hiring

The report quoted Alug as saying that companies are expected to leverage the holiday season through December by introducing new products and promotions. The e-commerce industry is particularly positioned for a substantial sales increase, necessitating a larger workforce and resulting in both temporary and permanent hiring spikes.

The new positions will include various supply chain functions, such as warehouse staff, inventory managers, logistics coordinators, kirana partners, and delivery drivers. As a result, during peak demand periods, the need for gig delivery riders on rapid commerce platforms is projected to rise by 30 per cent. Other drivers contributing to increased hiring include consumer spending patterns, seasonal business needs, economic indicators, and industry-specific trends, the report said.

The report further quoted Alug as saying that about 70 per cent of the newly created positions will be temporary to cater to seasonal needs, while around 30 per cent are likely to be permanent, providing more stable, long-term employment opportunities. The gig economy is also expected to see a significant uptick in female participation, with a 35 per cent increase.

Women are drawn to the flexibility and diverse opportunities available in the gig economy, which includes roles such as brand advocacy, beauty and grooming, online tutoring, domestic help, cab driving, and food delivery. The festive season thus offers a favorable outlook for job seekers, especially for women seeking flexible employment options, the report said.

Roles such as delivery drivers, customer service representatives, tech support specialists, and freelance designers are anticipated to be in high demand. Salaries for these positions, currently between Rs 12,000 and Rs 16,000, are expected to rise by 10-20 per cent over the next few months due to the increased demand.

BigBasket, Urban Company lead in fair compensation

India's gig economy is thriving, but worker treatment remains a concern. The Fairwork India Ratings 2024 report, released by CITAPP and Oxford University, assesses 11 major platforms, including Amazon Flex and Swiggy. This year's findings reveal the tightening control platforms have over workers, raising questions about the effectiveness of ongoing efforts to protect gig workers’ rights.

Of the 11 platforms evaluated, only BigBasket and Urban Company received a point for guaranteeing that their workers earn at least the local minimum wage after accounting for work-related expenses. However, none of the platforms demonstrated that they paid a living wage, which is an essential standard for equitable treatment.
 

Safety continues to be a significant concern, but platforms like Amazon Flex, BigBasket, BluSmart, Swiggy, Urban Company, Zepto, and Zomato earned points for providing safety equipment and training. However, only a few — including BigBasket, Swiggy, Urban Company, Zepto, and Zomato — took further steps by offering accident insurance and income protection for workers during medical emergencies.