The gig economy is a form of work where individuals engage in short-term, flexible jobs or “gigs,” often facilitated by online platforms. These jobs are typically temporary, project-based, or on-demand work rather than traditional full-time employment. According to the CIPD report (2017), the gig economy is challenging to define precisely because it encompasses a broad range of work arrangements, from freelancing and ride-sharing to food delivery and online task-based services​.

A key characteristic of the gig economy is that workers are usually classified as independent contractors rather than employees, meaning they do not receive the same benefits and protections as traditional workers. Platforms like Uber, Deliveroo, and TaskRabbit have been at the forefront of this shift, allowing individuals to trade their time and skills flexibly.

The gig economy is often seen from two contrasting perspectives:
  1. A positive shift towards flexibility – Workers can choose when and how they work, gaining autonomy and the ability to balance work with other life commitments.
  2. A move toward insecure employment – Critics argue that gig workers lack job security, benefits, and fair pay, making it a potentially exploitative system.

Despite these debates, the gig economy continues to grow globally, shaping modern work practices.

The evidence for the extent of the gig economy in the UK

The gig economy in the UK has been growing steadily, with increasing numbers of workers engaging in short-term, flexible employment through digital platforms. According to the CIPD report, approximately 4% of UK working adults are engaged in some form of gig work, such as providing transport, delivering goods, or performing short-term online tasks​ CIPD report (2017) Interestingly, a significant proportion of gig workers (58%) also hold traditional permanent employment while using gig work as a supplementary source of income CIPD report (2017).

Despite its growth, the gig economy remains a small part of the overall UK labor market, with many workers viewing it as a temporary solution rather than a long-term career. The report indicates that only 15% of gig workers have been involved in the same gig activity for more than three years, while half have engaged in gig work for less than a year​ CIPD report (2017). This suggests that gig work is often used to bridge employment gaps, boost income, or achieve short-term financial goals, such as saving for a car or a holiday​ CIPD report (2017).

One key challenge of the gig economy is financial stability. Earnings are generally low, with the median hourly rate for gig workers falling between £6 and £7.70, depending on the type of work​ CIPD report (2017). Many workers also struggle to secure consistent work, with only 26% stating that they get enough regular gig work​ CIPD report (2017). Furthermore, many gig workers feel they lack control over their work, with 47% stating that they do not feel like their own boss​ CIPD report (2017).

Real-life cases highlight these issues. For example, Paul, a secondary school teacher, worked for Deliveroo to supplement his income due to London’s high cost of living. While he found the extra earnings useful, he was frustrated by the level of control exercised by the company, such as being automatically logged out of the app for declining jobs​ CIPD report (2017). Similarly, Mary, a former legal secretary, turned to gig work after being made redundant, but struggled to find enough jobs to sustain her income​ CIPD report (2017).

The gig economy in the UK is expanding, but it remains a controversial and often unstable form of employment. While it provides flexibility and additional income, many workers experience financial insecurity and lack of autonomy. As the government reviews modern working practices, debates around employment rights and protections for gig workers continue.

Types of Jobs in the Gig Economy

The gig economy encompasses a wide range of jobs, often facilitated through online platforms and apps. These jobs provide workers with flexibility but may also come with income instability and lack of benefits. According to the CIPD report “To Gig or Not to Gig?”, the main types of gig economy jobs include:

  1. Transportation and Delivery Services
  • Ride-Sharing (Uber, Lyft, BlaBlaCar): Drivers use their own vehicles to transport passengers, often working irregular hours based on demand.
  • Food and Goods Delivery (Deliveroo, Uber Eats, City Sprint): Workers deliver meals or packages, typically paid per delivery rather than an hourly wage.

Example: Paul, a secondary school teacher in London, works as a Deliveroo cyclist on weekends to supplement his income. While he enjoys the exercise, he finds the work unpredictable and dislikes the lack of employment protections​.

  1. Freelancing and Online Services
  • Content Creation and Editing (Upwork, Fiverr, PeoplePerHour): Freelancers offer services like copywriting, proofreading, and graphic design.
  • Virtual Assistance (Freelancer, Zirtual): Administrative professionals provide remote support, including email management and customer service.

Example: Maddie, a freelance proofreader and editor, enjoys the flexibility of gig work but acknowledges that earnings fluctuate. She relies on platforms like Professoor and OneSpace to find short-term projects​.

  1. Manual and Short-Term Task-Based Work
  • Household and Maintenance Services (TaskRabbit, Handy): Workers perform home repairs, furniture assembly, or cleaning services.
  • Temporary Office and Admin Work (Just The Job, PeoplePerHour): Short-term administrative and secretarial tasks on an as-needed basis.

Example: Mary, a former legal secretary, relies on gig work for temporary administrative assignments after being made redundant. However, she struggles with inconsistent work availability​.

  1. Sharing Economy Jobs
  • Accommodation Rental (Airbnb, HomeAway, Tripping.com): Homeowners rent out spare rooms or properties for short-term stays.
  • Car Rentals (Zipcar, EasyCar): Individuals rent out their vehicles to earn extra income.

Example: Susan, a part-time math teacher, supplements her income by tutoring students through online platforms. She finds the work rewarding but admits it can be stressful managing multiple jobs​.

Gig economy jobs range from transportation and freelancing to manual labor and the sharing economy. While they offer flexibility, many workers experience financial instability and lack employment benefits. The debate over whether the gig economy is a step toward worker empowerment or a move toward exploitation continues, with many gig workers seeking greater legal protections while valuing the autonomy gig work provides.

Exposure to the Global Labour Market in the Gig Economy and Wage Implications

Working through an online platform in the gig economy exposes workers to a truly global labour market. Unlike traditional employment, where wages and conditions are largely influenced by national labour laws, unions, and local economic conditions, gig workers find themselves competing with individuals from all over the world. This global competition means that workers from high-cost-of-living countries like the UK or the US often compete for jobs with those in lower-cost economies such as India, Indonesia, or Eastern Europe, where workers can afford to charge significantly lower rates.

For example, a freelancer offering graphic design services on Fiverr or Upwork might bid for a project alongside designers from countries where the cost of living is much lower. A UK-based designer who typically charges £30 an hour might struggle to compete when another designer from a country with a lower cost of living is willing to do the same work for £10 an hour. As a result, the global gig economy tends to drive wages downward, as clients naturally gravitate towards cheaper labour​.

This race to the bottom in wages is further exacerbated by the nature of digital platforms, which operate on an open marketplace model. Workers often underbid each other in an attempt to secure work, leading to suppressed earnings. A survey of gig workers in the UK found that many reported earning below the minimum wage once all costs were factored in, especially in industries like ride-hailing and food delivery​.

Another implication of this globalised labour market is the lack of wage standardisation and protection. Traditional employees benefit from minimum wage laws, union negotiations, and employment rights that ensure fair pay and working conditions. Gig workers, however, often fall into the category of “self-employed,” meaning they are not entitled to the same protections. This classification allows platform providers to avoid responsibilities such as holiday pay, sick leave, and pensions, leaving workers financially vulnerable​.

However, some argue that the gig economy also provides opportunities. For skilled workers in lower-income countries, online platforms offer access to better-paying jobs that they would not have had otherwise. A software developer in Nigeria, for instance, can now work with US-based companies at rates that are far higher than what they would earn locally.

While the global nature of the gig economy offers opportunities for workers worldwide, it also leads to downward pressure on wages, particularly for those in high-income countries. Without regulatory intervention, gig workers will continue to face significant financial insecurity, highlighting the need for discussions on fair pay and labour rights in the digital age.

Gig economy workers express a wide range of emotions about their work, reflecting both positive and negative experiences. Many workers value the flexibility that gig work provides, allowing them to balance their professional and personal lives. For example, a retired teacher named Toby appreciates the gig economy because it allows him to supplement his pension without committing to a full-time job. He finds the flexibility beneficial due to his health condition but expresses concern about the lack of job security for younger workers, including his children​.

How do gig economy workers feel about their work?

Positive feelings such as excitement and optimism are more common among gig workers compared to those in traditional employment. According to the CIPD report, gig economy workers are almost twice as likely to report feeling optimistic about their work compared to traditional workers (25% versus 14%). Additionally, 20% of gig workers say they feel excited by their work most or all of the time, compared to just 7% of traditional employees​.

However, there are also significant challenges. Many gig workers report feeling a lack of autonomy despite being classified as self-employed. Only 38% of gig workers feel like their own boss, while nearly half (47%) say they do not have control over their work. Delivery workers, in particular, are the least likely to feel a sense of autonomy, with just 31% agreeing that they feel like their own boss​.

Financial insecurity is another major concern. Many gig workers earn low wages with significant expenses. For instance, an Uber driver reported earning £2,800 per month but only taking home approximately £1,750 after accounting for car-related costs such as finance payments, insurance, and fuel​. Furthermore, 20% of gig economy participants report that they find it “quite or very difficult” to manage financially, compared to 13% of workers in traditional employment​.

The lack of employment rights also causes distress for some workers. Many gig workers believe that companies should provide better protections and benefits. Around 63% agree that the government should enforce regulations to ensure gig workers receive basic rights, such as holiday pay and minimum wage​. Additionally, many gig workers, like Paul, a Deliveroo rider, feel that they are treated like employees due to performance monitoring and scheduling practices, despite being classified as self-employed​.

Many gig economy workers enjoy the flexibility and autonomy, others face challenges related to financial insecurity, lack of control, and inadequate employment protections. Their experiences highlight the need for a balanced approach to regulating the gig economy while preserving the benefits of flexible work.

Does it make a difference if the gig job is essential or supplementary to other work?

The difference between essential and supplementary gig work is significant in determining the experience and financial security of gig workers. Many individuals participate in the gig economy as a supplementary source of income rather than a primary one. For example, Susan, a teacher, uses online tutoring platforms to earn extra money to help pay her rent and support her grandchildren. While this additional work provides financial relief, it also adds pressure, impacting her work-life balance and overall well-being​. CIPD report (2017)

On the other hand, for those relying on gig work as their primary income source, financial security becomes more uncertain. Many gig workers experience inconsistent income levels, making it difficult to plan long-term financial commitments. Paul, a Deliveroo cyclist, finds that while gig work is a good supplementary income for him, it would be stressful if it were his only source of earnings due to fluctuating demand​. CIPD report (2017)

Another key distinction is the level of control and autonomy. Those using gig work to supplement their income tend to view it as a flexible and empowering choice, whereas those fully dependent on gig work may feel trapped by the lack of benefits and stability. David, an Uber driver, acknowledges the flexibility but also expresses concerns over the high costs associated with vehicle maintenance, insurance, and Uber’s control over drivers’ ratings and work availability​. CIPD report (2017)

As gig work can be a beneficial tool for financial flexibility, its viability as a primary income source remains questionable. The absence of employment protections, fluctuating earnings, and limited benefits make it a precarious option for full-time workers, while those using it as supplementary income may enjoy greater flexibility without facing the same financial risks.

Final Thoughts

Reflecting on the gig economy, I see both its promise and its pitfalls. On one hand, it offers flexibility, autonomy, and the ability to earn income on one’s own terms. For people like Susan, the teacher supplementing her income with online tutoring, or Toby, the retired professional who values occasional work, gig jobs provide a much-needed financial boost without the rigidity of traditional employment.

However, the other side of the coin cannot be ignored. Many gig workers, especially those relying on it as a primary income source, struggle with job security, unpredictable earnings, and a lack of employment protections. Paul, the Deliveroo cyclist, finds it manageable as a side job, but the thought of it being his sole income is stressful. Likewise, David, the Uber driver, feels the weight of maintenance costs and platform control, making true independence an illusion.

So, does it make a difference whether gig work is essential or supplementary? Absolutely. When used as an additional income stream, gig work can be empowering. But when it’s the main livelihood, the risks far outweigh the rewards. As the gig economy continues to evolve, I believe businesses and policymakers must strike a balance—ensuring that workers have the flexibility they desire without sacrificing their financial stability and basic rights. Only then can the gig economy truly be a force for good.

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