Depression & Anxiety! Know How Gig Economy Can Negatively Impact On Mental Health

The gig economy is a worker's market known for short-term freelance and contract-based work, unlike permanent jobs. In recent times, there has been a significant increase in the popularity of the Gig Economy and the demand for Gig workers. Especially during the post-pandemic, it has become the latest trend for industries in India.

The gig economy is not just prevalent in urban India but has also emerged with positive signs in tier-two and three cities. As the industries are expanding their footprints in rural India, the demand for Gig workers is also increasing significantly.

It offers several features, including time management, flexible work hours, and work efficiency, to make it popular among millennials. According to a Boston Consultancy Group (BCG) report published in 2021, India holds the potential to serve up to 90 million jobs in the non-farm sector of the Gig economy, which will contribute to nearly 1.5 per cent of the total GDP.

Many unicorns and new-age startups like Byju's, Flipkart, Swiggy, and Vedanta have contributed to the Gig economy by hiring skilled Gig workers for their contract-based and freelance projects. The reason for its popularity is that it increases work efficiency and reduces the company's head operation cost.

According to a report by the Indian Brand Equity Foundation (IBEF), over 70 per cent of the operational multi-national organisations in India function, with 10 per cent Gig workers out of their total employees. The data and figures show the increasing popularity, and it's only expected to rise in coming times. But the opportunity comes with certain challenges.

Underemployment & Mental Health

In 2019, a study conducted by INSEAD highlighted that the Gig economy could positively impact workers' mental health. The study showed that Gig workers have better mental health than salaried people, with a higher confidence level and less stress and anxiety.

A recent study by the University of Stirling suggests the direct impact of underemployment (very prevalent in the Gig economy) on mental health. According to the study, underemployment can be defined as any nature of work that engages the worker for fewer than 30 hours a week, reported Forbes.

Underemployment which is the uncertain nature of the Gig economy, puts the worker in high-end depression and mental pressure, which reduces lifestyle quality. The study found that many Gig workers worldwide want to work more hours than they are working. This inherited nature of such types of economies pushes workers into psychological distress.

The workers in this category of the Gig economy are more stressed and depressed than their peers who are full-time employees. What's great is that it's reversible as the Gig workers can undergo transformation to get full-time employment which might resolve their concern with working hours.

Fluctuation In Work

Another central point of concern for Gig workers is that the smooth and consistent flow of paid assignments in the Gig economy is not much, which leads them to a mental pressure phase, reducing the quality of lifestyle. Recent studies published by several psychologists show that the stability of work in such an economy is significantly less, which could lead to an unstable lifestyle for the worker.

Another challenge is to sustain productivity amid constant struggles, which often occur. Unlike traditional jobs, gig workers are left unpaid if they are not on the stage to show productivity. It leads to distress and distraction, which often the worker finds challenging to overcome. Many believe that in such circumstances, one can transform to a regular job for the time being to recover from the mental challenges.

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