Paper: GS – II, Subject: Society and Social Justice, Topic: Social Sector-Human Resources, Issue: Temporary staffing model vs gig employment.
Context:
India’s workforce structure is changing. By 2025, India’s gig economy is projected to include 12 million workers. Temporary (or “temp”) staffing industry is also expected to grow at 13.2% annually which Indicates a shift from informal gig work to more structured temporary staffing models.
Key Highlights:
Temporary Staffing Vs Gig Economy:
| Gig workers | Temporary Staffing |
| Treated as independent contractors, with no job or income security.Earnings: ₹15,000–₹20,000 per month on average.90% have no access to social security.Only 3% manage similar transitions.Limited on-the-job learning and upskilling.Difficult contract negotiations.High unpredictability in cost and availability. | Earn 10–15% more on average.Receive statutory benefits like PF, health insurance.Example: ₹25,000/month in manufacturing with PF could yield ₹10–15 lakh corpus in 20 years.23% of temp workers transition to permanent roles annually due to structured training and sector exposure.Businesses save 25% on recruitment, 30% on onboarding vs gig model. Easy to scale workforce during peak seasons (e.g., 50% hiring boost during festivals). |
Issues:
- Gig Economy Issues:
- 80% of gig workers operate outside legal frameworks.
- Loss of ₹50,000 crores annually in government revenue due to tax and PF evasion.
- High exploitation and theft (30% report asset theft).
- Only 5% report such issues due to structured oversight.
Sectoral Insights:
- India’s Formalisation Agenda: Bring 400 million informal workers into organised employment by 2047.
Implications:
- Boost to Formal Sector: Temp staffing strengthens formal job creation and contributes to more equitable and secure employment.
- Incentivisation and effective regulation: Expand incentives and enforce regulations to formalise the labour market. Promote temp staffing for sustainable employment.
Conclusion:
Temp staffing is not a stop-gap but a sustainable, growth-oriented alternative. Temp staffing ensures wage security, skill growth, and regulatory compliance, unlike gig work. A formal employment structure like temp staffing is vital for India’s inclusive growth and labour reforms.
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