Skill, labour, talent for MSMEs: The headwinds faced by Indian startups in the past few months have also led to a shift in their workforce trends. According to a payroll report launched by RazorpayX — the neobank arm of payment company Razorpay — on Friday, the demand for skilled gig workers earning over Rs 1.5 lakh per month has increased by 21.38 per cent in the past six months, indicating higher demand for skilled gig workers. The growth has come amid a hiring slump as the rate of hiring in startups declined by 36.45 per cent, the report said analyzing payroll data from October 2022 to March 2023 of over 26,000 startup employees across more than 20 sectors.

Gig workers are largely platform and non-platform based. Platforms are referred to the online technology or app-based companies while non-platform gig workers are casual wage earners.

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Among business verticals, the headcount of gig workers operating in the business department increased the most by 28.24 per cent during the period followed by the finance department where the gig headcount jumped by 20.18 per cent. Moreover, salaries also continued to grow despite the dip in hiring. The report also noted a 20.94 per cent increase in salary payouts among the gig workers’ cohort.

“Startups have continued to remain bullish on hiring skilled gig workers last year. This trend promises a brighter future with more opportunities for specialized workers, giving rise to a new era of work and work culture with greater flexibility and freedom,” said Ayush Bansal, VP & GM, RazorpayX.

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The growth in gig workers reflects the overall scale of India’s gig economy which is expected to see its workforce expand to 23.5 million workers by the year 2029-30 — nearly 200 per cent growth from the current 7.7 million in FY21, a Niti Aayog report, ‘India’s Booming Gig and Platform Economy’ had said in June last year. 

The gig workers are likely to have a 6.7 per cent share in the non-agricultural workforce or 4.1 per cent of the total livelihood in India by 2029-30, according to the Niti Aayog report. In comparison, in FY21, the gig workforce was 2.6 per cent of the non-agricultural workforce or 1.5 per cent of the total workforce in India.

“In the face of challenging macroeconomic scenarios, Indian startups have always exhibited remarkable resilience and adaptability, and have continued to cement their position as one of the world’s most dynamic startup hubs,” said Bansal. 

RazorpayX said it currently serves over 45,000 businesses and in the last six months has helped save over 300 man-hours for startups. The company facilitates day-to-day payments, accounting & reconciliation, payroll automation, and more for startups.