A recent study by the National Council of Applied Economic Research (NCAER) sheds light on the changing fortunes of gig workers in India. The report indicates a significant drop in the average real monthly income of food delivery executives between 2019 and 2022.
Income Erosion for Long-Shift Workers
The study reveals that the average monthly real income of food delivery executives working long shifts of 11 hours per day suffered a notable decline. Their income plummeted from INR 13,470.8 in 2019 to INR 11,963 by May 2022.
Factors Driving Income Dip
Rising fuel costs and mounting inflation have been attributed as the primary drivers behind this income reduction. The study identifies these factors as key contributors to the high attrition rate witnessed in the gig economy, making it harder for workers to meet daily targets.
Impact on Household Expenditures
The report also highlights the impact of decreased income on the ability of long-shift food delivery workers to cover household expenses. While gig workers broke even in 2019 and 2020, the subsequent years witnessed challenges in managing monthly expenditures due to escalating fuel prices and inflation.
Skill Mismatch and Dependence on Platforms
Another significant finding is the mismatch between job requirements and workers’ qualifications. Surprisingly, a third of the surveyed workers possessed a graduation degree, while over 12% held technical or vocational degrees. The study underscores the critical reliance of workers on food delivery platforms, with a substantial portion being primary breadwinners.
The NCAER’s study paints a concerning picture of gig workers’ earnings in India’s evolving economy. The decline in real incomes of long-shift food delivery workers underscores the challenges posed by inflation and fuel costs. Additionally, the study points to a skill disparity and heavy dependence on platforms, highlighting the need for comprehensive policies that prioritize workers’ conditions and skills recognition. As India’s gig economy continues to grow, it becomes increasingly crucial for the government and platforms alike to work towards ensuring fair compensation and social security for the workers who contribute significantly to the digital economy’s expansion
