The Gig economy is changing the way people work and travel in Pakistan. It is also changing the way people perceive dignified employment. This article explores how these new gig jobs are transforming our country. We also look at a few examples of common gig jobs, such as bicycle-hailing and freelancing.
Gig economy
The government plans to introduce a presumption of employment relationship for gig economy workers. This is aimed at strengthening the legal position of vulnerable workers. However, there are many caveats to this. There are tax and social security demands, and many gig workers are wary of being tied down to one company or the other.
The gig economy in Pakistan accounts for 8 percent of the global gig economy, trailing behind the United States, India and Bangladesh. It has given many Pakistani women a foothold in the new digital economy. Gig work allows them to earn an additional income and access services that would otherwise be out of their reach.
Although the gig economy has created more jobs for women, it hasn’t provided equal opportunity to everyone. Pakistan’s internet penetration rate is only 22 percent, which means that the majority of the population cannot take advantage of digital work platforms. These platforms also favor the urban, English-speaking elite. Some platforms provide greater opportunities for women, but they often reinforce gender segregation and industry biases.
The biggest concerns about the gig economy in Pakistan have been around the lack of minimum wages and protections for workers. While Gharpar provides some protection for its workers, Uber provides sufficient protection, and Foodpanda provides clear contracts, no platform has a formal appeals process and no one has organized a union that represents gig workers.
Freelancing
The gig economy is an emerging trend in Pakistan. It is changing the way people travel and the way they perceive dignified employment. Many people have turned to online freelancing to earn money. The recent surge in the number of online freelancing jobs is a good indicator that the economy is growing.
Freelancing in Pakistan has been growing significantly for the last few years. During the Covid-19 wave, freelancers were able to earn millions of dollars. These individuals do not need any backing or references to get started. With the increasing number of freelancers in the country, more industries are developing revenues through freelancing.
According to a recent study by Payoneer, Pakistan is one of the ten fastest growing countries for freelance workers. Most freelancers are under the age of 30, and most have technical training. In Pakistan, the freelancing market generated $500 million dollars in 2017.
While the gig economy is growing in popularity around the world, there are risks and concerns. Gig workers often lack health insurance and safety nets. In Pakistan, for example, it is not possible for freelance workers to receive health insurance. However, they can take advantage of freelance marketplaces and establish platform co-ops to control their working conditions and rates.
In Pakistan, freelancers generate 77% of the country’s revenues. This growth is due to an increase in young population, improving science and technical education, and high-speed broadband access. As a result, Pakistan has become a hub for freelancers in the Gig Economy.
Bicycle-hailing
A growing number of Pakistanis have started earning money via the gig economy. Bicycle-hailing services are a prime example of this phenomenon. Riders can sign up for a service on an app and get paid when the customers request them. These jobs are not permanent, but they can be quite lucrative.
Unlike traditional employment, the gig economy in Pakistan is dominated by people who have little or no experience. Those who participate in the gig economy are more likely to be women and young people. This trend is further supported by the growth of on-demand start-ups and e-commerce companies. The gig economy is increasingly popular in Pakistan, but there is still a long way to go.
The gig economy is an expanding segment of the labour market characterized by short-term contracts and freelance work. It has been around since businesses started hiring temporary workers to fill gaps in their workforce. Its growth in the last few years has led to a rise in the number of gigs in Pakistan.
A growing gig economy is causing many people to opt for non-traditional ways to earn money. Some people have quit their regular jobs and become self-employed. Others have chosen to work as a freelancer to earn more money and have more time flexibility.
Digitization
The gig economy is a global phenomenon. It is a fast-growing segment of the economy. Many of the gig workers work remotely, without any set office hours or fixed location. However, there are some challenges associated with this segment, including a lack of quality assurance and safety nets. This section of the economy has also been criticized for its poor health insurance coverage.
The digitization of the gig economy has not brought equal opportunities to all citizens. Pakistan’s internet penetration rate is only 22 percent, meaning that most people are unable to take advantage of these technologically-based platforms. As a result, these digital platforms tend to favor the urban, English-speaking elite. Moreover, while some platforms have made it possible for women to take advantage of these opportunities, they also reinforce gender segregation and industry biases.
The growth of the digital gig economy in Pakistan is the fastest in Asia and the fourth-fastest in the world. According to a report by the McKinsey Global Institute, this segment of the economy is expected to add seven percent to the economy and create four million new jobs in the next five years. Additionally, Pakistan has the highest Facebook user count in South Asia and has several local companies leveraging social media as a marketing tool. The country also has the highest smartphone penetration in South Asia, and mobile banking is showing promise.
Despite the challenges associated with the gig economy, many workers are still able to find work that fits their needs and their lifestyles. There are numerous freelance platforms operating in Pakistan that offer many options for gig workers. However, there are also many risks and disadvantages associated with this emerging type of work.
Working conditions
The working conditions of gig economy workers are often terrible, especially in Pakistan. The country has around two percent of its labor force working in this form of employment, but many of them do not receive a decent wage. There is a race to the bottom with gig economy working conditions. Luckily, there is a new study that highlights some best practices and can help Pakistan’s gig economy workers improve their living conditions.
Gig workers are not considered employees and do not have access to a collective bargaining agreement. Their work experience is often unrecognized and not valued in a standard labour market. This is one of the challenges that governments are trying to address in Pakistan. While the gig economy is a great way to create jobs for youth, it also has some drawbacks.
Gig work disrupts the work-life balance of many people. It also interferes with sleep patterns and other daily activities. Gig workers must constantly be on the lookout for the next gig. In addition, competition for gigs has increased. Gig workers also have to deal with a lack of unemployment insurance. The CARES Act of 2020 has changed this rule and now covers gig workers.
While these jobs are highly flexible, they often lack benefits and perks. The pay for these gig jobs is often significantly below the minimum wage in Pakistan. For example, university graduates can make less than Rs 20,000 per hour, which is well below the legal minimum wage. In addition to this, most gig workers are not entitled to overtime, which is an important issue in Pakistan.
