December 23, 2024

Living Below the Line: New Research Reveals Alarming Pay Gaps in Gig Economy

Gig workers, likewise understood as independent contractors or freelancers, form a significant part of the modern-day workforce. They engage in momentary or project-based work, typically facilitated through online platforms. While gig work provides flexibility and autonomy, it likewise comes with inherent uncertainties such as inconsistent income and restricted access to protections and benefits usually supplied by traditional employment arrangements.
The research study included 510 UK gig economy employees who were surveyed last year. Functions councils that exist in countries like Germany could therefore provide a design for platform councils and assemblies in the gig economy to help with workers having a say over the decisions which impact their capability to make a living.

Gig employees, likewise understood as independent specialists or freelancers, form a significant part of the contemporary labor force. They participate in project-based or temporary work, typically helped with through online platforms. While gig work offers flexibility and autonomy, it likewise comes with intrinsic uncertainties such as inconsistent income and limited access to benefits and protections normally offered by standard work plans.
As the expenditure of day-to-day life keeps intensifying, a groundbreaking report exposes that over 50% of gig economy staff members in the UK are paid listed below the minimum wage.
The pioneering research study, performed by the University of Bristol, found that 52% of gig employees, participated in jobs from information entry to food delivery, were making less than the minimum wage. Usually, individuals made ₤ 8.97 per hour, around 15% lower than the present UK minimum wage, which increased to ₤ 10.42 this month.
More than three-quarters (76%) of survey participants also experienced job-related insecurity and anxiety.

Lead author Dr. Alex Wood, Senior Lecturer in Human Resource Management and Future of Work at the University of Bristol Business School, stated: “The findings highlight that operating in the UK gig economy often requires low pay, stress and anxiety, and tension. As fuel, real estate, and food expenses keep rising, this group of employees are particularly vulnerable and need to be more adequately compensated and better safeguarded.”
Equally concerning, more than a quarter (28%) felt they were risking their health or security in doing gig work and a quarter (25%) experienced pain on the job.
When asked what would improve their scenario, fundamental rights such as minimum wage rates, holiday and ill pay, and security versus unjust termination were most desired.
Unions and platform councils (similar to works councils that exist in some European countries) to represent their requirements and help influence how gig economy platforms operate and impact their working conditions likewise included on their wish list. More than three-quarters of respondents thought the intro of such bodies would bring instant benefits.
Dr. Wood said: “A major factor contributing to low pay rates is that this work includes spending considerable quantities of time looking or waiting for work while gone to a platform. Not only is the work low paid, however it is also exceptionally insecure and risky.
” The self-employed who are dependent on platforms to earn a living are urgently in requirement of labor protections to protect them against the huge power asymmetries that exist in the sector. This clearly requires the expansion of the present employee status to secure them.”
The research study involved 510 UK gig economy workers who were surveyed last year. There was representation from across the sector, with around half being remote freelancers utilizing platforms such as Upwork and Fiverr to choose up jobs ranging from information entry to site design. The other half comprised local chauffeurs offering food delivery and taxi services by means of platforms including Deliveroo and Uber.
More than simply side hustles to earn additional cash, participants invested on average 28 hours a week undertaking gig work, comprising 60% of their overall revenues.
Respondents extremely considered their work to be best described as self-employment and believed an extension of labor rights to include the self-employed would substantially improve their working lives.
This was the very first research study to investigate what types of voice gig employees want. The findings recommend strong assistance for European style co-determination whereby worker representatives are spoken with on and approve modifications that affect working conditions and work. Functions councils that exist in nations like Germany might therefore supply a design for platform councils and assemblies in the gig economy to help with workers having a say over the choices which affect their capability to make a living.
Brendan Burchell, Professor in Social Sciences at the University of Cambridge and co-author of the report added: “Respondents strongly felt the production of co-determination systems would allow workers, and their agents, to influence platform provider decisions which might quickly improve their working lives.
” These policies include chosen bodies of employee representatives authorizing all significant platform modifications that affect jobs and working conditions. Our findings highlight the potential for trade union growth in this sector, with majorities being prepared to sign up with and even arrange such bodies.”
Referral: “Gig Rights & & Gig Wrongs– Initial Findings from the Gig Rights Project: Labour Rights, Co-Determination, Collectivism and Job Quality in the UK Gig Economy” by Alex J. Wood, Nick Martindale and Brendan Burchell, 2023.