Work Foundation analysis has shown that one in five workers in the UK (6.8 million) are in severely insecure work. This group includes some of the most precariously employed workers in the UK: those engaged in platform work.

Being trapped in these forms of employment has been shown to have a detrimental impact on an individual's health and well-being, with insecure workers at an increased risk of having depression and anxiety.

What’s more, being in severely insecure work can also lead to financial insecurity, with Work Foundation research finding that nearly half of insecure workers would not be able to pay a £300 bill if this was due within the next week. Platform and gig workers are particularly impacted by unpredictable and low income, especially those workers who derive their entire earnings from the gig economy.

Platform work in the UK

New research into platform work using the nationally representative survey, Understanding Society, shows that of 2023, an estimated 13.2% of the economically active population in the UK was engaged. For 62% of platform workers, it is the main form of employment. Although many proponents claim that this kind of work is only pin money for students or people trying to earn a little extra, for the majority it is the main source of income.

Platform work is known as a form of employment that uses algorithmic control to mediate the commissioning, supervising, delivering, and compensating of workers on a contingent, piece-work basis. The work performed through (and for) digital labour platforms, is broadly categorized into gig work, executed locally in person (e.g. providing a taxi service or manual work in plumbing, building, and cleaning such as Deliveroo and Uber), and cloud work, executed remotely online (e.g. providing professional work in consultancy, data entry, and IT, such as through Upwork).

Figure 1: Local gig work and online cloud work

Source: ChatGPT 4.0

The term ‘platform (algorithmic) work’ lacks a specific meaning in law. Individuals involved in such work often experience diminished legal rights and protections — for example, the absence of sick pay and holiday leave – given that contracts and employment statuses vary from one employer to another. While platform work is praised for its flexibility and autonomy, critics point to precarious working conditions and eroded terms of employment.

Gig work that is done locally, such as food delivery or taxi services, is just the tip of the iceberg when it comes to platform employment. Often overshadowed, cloud work represents such as online freelancing represents a significant portion of this landscape, with a ratio of four cloud workers to one gig worker. Yet it remains largely unnoticed in discussions about the future of work, especially in policy discourse.

While the term ‘gig worker’ conjures up images of a young student zipping around on a bike, my analysis of a national survey reveals a starkly different reality. Three-in-four platform workers are aged 34 and above, with roughly 70% being married or cohabiting, and 34% raising children. Only a small fraction - 4.9% of gig workers and 3.7% of cloud workers – are individuals such as full-time students and retirees. More divergence between gig and cloud workers is found in gender representation – whereas there is a balance between women and men in cloud work, gig work is predominantly male, with women comprising 33.6%. Additionally, educational attainment differs markedly between the two groups, with 69% of cloud workers holding a university degree, compared to 39% of gig workers.

The distinction between gig and cloud workers is important due to their differing activities and working environments. Cloud work might occur through both domestic and international platforms, sometimes simultaneously, making these workers less visible in public life. Thus, they may lack the rights and protections afforded to other workers. Therefore, it is imperative to include and actively engage cloud work in discussions about how the platform work is changing the UK labour market.

Figure 2: The socio-demographic characteristics of gig and cloud workers (%)

Source: Author’s analysis of microdata from Understanding Society Survey and ONS data, 2021-2023, weighted data.

Yuliya Vanzhulova Tavares, PhD Candidate at Queen Mary University of London. She can be reached at y.vanzhulovatavares@qmul.ac.uk or on Twitter @YuliyaTavares.

Disclaimer

The opinions expressed by our bloggers and those providing comments are personal, and may not necessarily reflect the opinions of Lancaster University. Responsibility for the accuracy of any of the information contained within blog posts belongs to the blogger.