Gig economy can add 1.25% to GDP

According to a report by the firm Boston Consultancy Group (BCG), the gig economy, where workers get hired typically for short durations, has the potential to contribute 1.25% share in Gross Domestic Product (GDP) in the long term, adding 90 million jobs in the non-farming parts of the economy. The report says that there could be transactions worth more than US$ 250 billion during the long term.

In short-to-medium term, the gig economy is expected to add around 24 million jobs in skilled, semi-skilled and shared services. It goes on to state that out of these 24 million newly created jobs, nearly 3 million will pertain to shared services roles and around 8.5 million to roles meeting household demand. It adds that the major share of the gig jobs (70 million jobs) can be created in manufacturing, transportation and logistics, construction and personal services, with demand majorly driven by small businesses and households.

The firm has determined estimated potential of gig economy based on interviews with the large corporations, inputs from industry experts and survey of around 600 urban households. The report also adds that in the coming 1-3 years, around 1 million net new jobs would be created owing to the gig economy.