The Paradox of Demographic Dividend: Ageing Population and the Gig Economy
As I travel from my office in Dal Gate towards Jawahar Nagar, in Srinagar, a 24-year-old food delivery rider parks his scooter in front of a coaching centre. He has just completed his third order of the morning and is checking his phone for the next one. His father, meanwhile, spent three decades as a government schoolteacher, drawing a steady salary and retiring with a pension that still sustains the family. The contrast could not be sharper: the father’s life revolved around a predictable career arc, while the son’s revolves around an unpredictable algorithm.
This is not just a personal story—it is the paradox India, and Jammu & Kashmir in particular, is grappling with. We celebrate our demographic dividend: the world’s largest young population ready to drive growth. Yet, the workplace of this generation looks very different. Life expectancy is rising—Gen Z is expected to live into their 90s, even 100s. But the employment landscape is shifting rapidly toward gigs, freelancing and platform work. The mismatch between longer lives and shorter, uncertain work contracts could leave a generation adrift without the security nets of the past.
In J&K, the paradox feels even starker. Thousands of graduates pass out each year from half a dozen Universities, IIT Jammu, NIT Srinagar and dozens of colleges. But many drift to Delhi, Bengaluru or abroad in search of structured careers. Those who stay often turn to the gig economy—delivery, ride-hailing, online freelancing—because it offers flexibility and immediate income. Yet, these roles do little to build careers or retirement cushions. A rider with four years’ experience is no better placed than a newcomer. For a generation expected to live 100 years, this is a structural crisis.
One can see this reality on the streets of Jammu. Akash, a 23-year-old graduate, spends his evenings weaving through the city traffic on his motorbike, delivering groceries for Blinkit. “Some days I earn well, other days barely enough to cover petrol,” he says with a shrug. His smartphone pings with every new order, but what does not ping is any assurance about health cover, retirement savings, or even income stability. Like thousands of others in the city, Akash enjoys the flexibility of gig work but quietly wonders how this will look when he is 40—or 60.
The gig economy now accounts for millions of livelihoods in India and has quietly entered J&K as well—delivery apps in Srinagar, freelance coding in Jammu, digital tutoring from small towns. But while it has expanded opportunities, it has also blurred the line between jobs and careers. There are no provident funds, no pensions and often no health cover. The difference between four years and fourteen years of work is negligible. For the region, with its history of educated youth underemployment, this could undermine the very demographic dividend policymakers celebrate.
Social security is the missing piece. In Europe or Japan, where life expectancy is also rising, strong public safety nets cushion gig and part-time workers. In India, such nets remain patchy. While the e-Shram portal is a step forward, its benefits are still limited. For a 28-year-old freelance designer in Jammu, or a 35-year-old delivery worker in Sopore, the risk remains the same: one illness or accident could erase months of progress.
This is where banks like J&K Bank can play a transformative role. Traditionally, banks looked at salaried or business income to design products. But the new reality requires next-generation offerings tailored to gig workers and long-living Gen Z. There is a need to imagine flexible savings products that adjust to irregular incomes, micro-pension plans with low monthly contributions or insurance bundled with recurring deposits. Imagine salary-like accounts for gig workers where platforms deposit earnings, linked to automatic savings sweeps or small investment plans. By combining digital agility with financial discipline, banks can bridge the gap between the volatility of gig work and the certainty needed for long lives.
For J&K Bank, this is both a business opportunity and a social imperative. With its deep local roots, the Bank can design products specifically for the youth of the JKUT—say, a “Suraksha Account” that bundles an account with health insurance, accident cover and a micro-pension facility. Or a “100-Year Life Deposit”, where small, irregular savings are locked into compounding instruments for long-term retirement security. These innovations would not only build loyalty among young customers but also help transform gig earnings into sustainable wealth.
Policymakers too must step up. The international experience shows us what is possible. The United States is debating portable benefits, where health cover and retirement savings follow workers rather than stay tied to a single employer. The United Kingdom extends state-backed pension contributions even to part-time and flexible workers, ensuring they are not left behind. Singapore’s Central Provident Fund mandates contributions from even gig and casual workers, creating a pool of long-term savings that ensures security without stifling flexibility. These models prove that flexible work and financial stability can coexist.
For India, and particularly for J&K where youth underemployment is acute, the lesson is clear. A portable social security framework must be created that includes pensions, health insurance and accident covers that move with workers across platforms. Government-backed micro-pension schemes, platform co-contributions and gig-linked credit guarantees—delivered in partnership with banks like J&K Bank—can ensure that the 100-year life is not defined by financial insecurity. With India’s digital economy booming, now is the moment to embed safety nets into the gig economy, not as an afterthought but as a core design feature.
Nationally, cities like Bengaluru or Hyderabad became magnets of prosperity because they built ecosystems where talent could stay, grow, and build careers. Jammu & Kashmir too can script its own story—but only if it provides not just jobs but futures. For that, retaining youth is not enough; empowering them with security and dignity is essential. Banks, government, and industry must act together to ensure that the demographic dividend does not turn into a demographic debt.
The challenge is urgent. Every year, thousands of youth join the gig economy. If they continue without safety nets, the region could face a generation of middle-aged citizens with long lives but fragile financial foundations. Conversely, if banks step in with innovative financial products, and policymakers support with portable benefits, J&K could become a model for inclusive growth in the gig era.
The world is moving towards a 100-year life. The gig economy is here to stay. The real test for regions like Jammu & Kashmir is whether they can reconcile the two—creating pathways where flexibility does not mean insecurity and longevity does not mean vulnerability. That is the only way the demographic dividend can truly pay off.
Rakesh Magotra, General Manager in JK Bank
(Views expressed are personal).
