‘To gig or not to gig’: New research to shape the debate

The CIPD has launched new research on the gig economy, to explore the growth of this new type of casual work and find out what the people taking it on really think about it.

These are the ever-growing number of people – 1.3 million, according to ‘To gig or not to gig: Stories from the modern economy’, the CIPD’s new report – who are using their skills and knowledge via the internet and mobile apps in order to find work. The report is based on a survey of 400 gig economy workers and more than 2000 other workers, as well as 15 in-depth interviews with gig economy workers.

The CIPD will take the findings to help inform the Government-commissioned review being led by RSA Chief Executive Matthew Taylor. The review comes as the much-publicised court cases involving Uber and Deliveroo have highlighted the rising trend of people working more flexibly and in ways that suit their needs – but who may run the risk of being exploited by unscrupulous employers.

The report shows that 4% of UK working adults aged between 18 and 70 are working in the ‘gig economy’, and nearly two-thirds of them (63%) believe the Government should regulate to guarantee them basic employment rights and benefits such as holiday pay.

The research also found that, contrary to much of the rhetoric around the gig economy, just 14% of respondents said they did gig work because they could not find alternative employment. The most common reason for taking on gig work was to boost income (32%). Overall, gig economy workers are also about as likely to be satisfied with their work (46%) as other workers in more traditional employment are with their jobs (48%).

However, there were concerns raised by some workers interviewed for the report about the level of control exerted over them by the businesses they worked for, despite them being classified as self-employed. This is supported by the data, as just four in ten (38%) gig economy workers say that they feel like their own boss, which raises the question of whether some are entitled to more employment rights. 

Peter Cheese, Chief Executive of the CIPD, said:  “This research shows the grey area that exists over people’s employment status in the gig economy. It is often assumed that the nature of gig work is well-suited to self-employment and in many cases this is true. However, our research also shows many gig economy workers are permanent employees, students, or even the unemployed who choose to work in the gig economy to boost their overall income.

“Our research suggests that some gig economy businesses may be seeking to have their cake and eat it by using self-employed contractors to cut costs, while at the same time trying to maintain a level of control over people that is more appropriate for a more traditional employment relationship. Many people in the gig economy may already be eligible for basic employment rights, but are confused by the issue of their employment status.

“It is crucial that the Government deals with the issue of employment status before attempting to make sweeping changes, else they risk building foundational changes on shifting sands. We welcome the Chancellor’s decision to wait for the Taylor Review before looking to make any changes in tax levels. We would like to see a full consultation on the complex issue of employment status, which explores whether it is possible to have greater clarity and consistency on this issue across employment, tax and benefits.”