In the UK, as the cost of living continues to soar, a new study, from the University of Bristol, reveals that over half of gig economy workers are receiving wages below the legal minimum.
The research delved into the working conditions of gig workers ranging from data entry operators to food delivery personnel, and found that 52% were earning less than the legally mandated minimum wage. The average hourly wage reported by respondents was £8.97, a figure that falls short by approximately 15% of the current UK minimum wage of £10.42, which was recently updated this month.
Furthermore, a concerning 76% of survey participants reported experiencing feelings of work-related insecurity and anxiety, amplifying the harsh realities of the precarious gig economy.
“The findings highlight that working in the UK gig economy often entails low pay, anxiety, and stress. As food, fuel and housing costs keep rising, this group of workers are especially vulnerable and need to be more adequately remunerated and better protected,” the authors explain.
Precarious work
The report, based on a survey conducted last year, drew insights from a diverse pool of 510 gig economy workers in the UK. The study encompassed a broad spectrum of the gig economy, with approximately half of the respondents operating as remote freelancers leveraging platforms such as Fiverr and Upwork to secure a range of jobs spanning data entry to website design. The other half comprised local drivers providing ride-hailing and food delivery services via platforms like Uber and Deliveroo.
For many respondents, gig work was not just a means to earn extra income, but a significant source of livelihood. On average, gig workers spent 28 hours a week performing these tasks, which accounted for 60% of their total earnings.
When asked about their work status, respondents overwhelmingly identified as self-employed and expressed a desire for an extension of labor rights to include the self-employed. They believed such an initiative would significantly enhance their working conditions and pave the way for more equitable treatment of gig workers.
Health risks
Adding to the already troubling findings, the report revealed that a significant proportion of gig workers in the UK also faced risks to their health and safety. In fact, over a quarter (28%) expressed concern over the dangers associated with their line of work, while a quarter (25%) reported experiencing physical discomfort while performing their duties.
When asked about potential remedies to their challenges, gig workers overwhelmingly cited basic labor rights such as minimum wage rates, holiday and sick pay, and protection against unfair dismissal as their most pressing demands.
Additionally, the creation of unions and platform councils, akin to works councils in certain European nations, emerged as another popular solution among respondents. More than 75% believed that the establishment of such entities could lead to immediate benefits for gig workers, including a greater ability to influence platform operations and improve working conditions.
“A major factor contributing to low pay rates is that this work involves spending significant amounts of time waiting or looking for work while logged on to a platform,” the researchers explain. “Not only is the work low paid, but it is also extremely insecure and risky.
“The self-employed who are dependent on platforms to make a living are urgently in need of labor protections to shield them against the huge power asymmetries that exist in the sector. This clearly warrants the expansion of the current ‘worker’ status to protect them.”
