The Gig Economy and Youth Unemployment in Undergraduates in Sri Lanka.

Abstract

The gig economy is a segment of the service economy based on flexible, temporary, or freelance jobs, often involving connecting clients and consumers through online platforms. Instead of maintaining their own staff, clients can hire gig workers with flexible payrolls. The flexibility in terms of earnings and working hours results in a better work-life balance. The COVID-19 pandemic catalysed the uptake of these digital technologies in Sri Lanka, with 31% of the 1.6 million people who came online during 2020-21 for pandemic-related reasons. According to the Labour Force Survey report in 2022, youth unemployment rates of the selected age groups were as follows: 20-29 – 16.2%, 20-24- 21.8% and 25-29- 11.7%. This study aimed to investigate whether the gig economy is a solution to decrease the youth unemployment rate in Sri Lanka. The sample for this study consisted of 200 undergraduates from the 20-24 age group at the University of Ruhuna. This study used descriptive analysis. The data revealed that the 20-24 age group’s unemployment rate in Sri Lanka has continued to increase. Most undergraduates want an income because most of them come from low-income families, and living costs are currently very high. However, they cannot join full-time jobs because it would interfere with their studies. Most of them like to work as freelancers, but they lack sound knowledge about these platforms. Most government bodies and leading companies could introduce freelance working platforms and encourage the young generation to join them. This would help increase labour force participation in Sri Lanka, increase government tax revenue, increase company profits, and decrease costs. These are some suggestions to promote the gig economy and increase the youth labour force participation rate in Sri Lanka.