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The Latest Gig Economy Statistics for the UK

The now not-so-new form of work is a big topic for lawmakers, workers, and companies. To understand this phenomenon, we will look into gig economy statistics. In the UK, 4.4 million individuals (including self-employed people) navigate gig platforms every week, according to recent research by the University of Hertfordshire. From part-time drivers to freelancers balancing full-time jobs, the gig economy is reshaping how we work. This article will cover the latest numbers and trends that make the gig economy a dynamic tale of flexibility, challenges, and everyday triumphs.
Dunja Radonic
Author: 
Dunja Radonic
Ben Mendelowitz
Editor: 
Ben Mendelowitz
Karen Idorn
Fact checker: 
Karen Idorn
12 mins
January 9th, 2024
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The Latest Gig Economy Statistics for the UK

Top 10 Gig Economy Statistics for the UK (Editor’s Choice)

  • Gig workers make up 12% of the global labor force in 2023.

  • The gig economy represents just 1.4% of the UK workforce.

  • 1 in 6 adults in the UK currently work a gig job.

  • 22% of men and 16% of women consider the gig economy their primary income source.

  • Ethnic minorities are more likely to rely on gig work as their main income,

  • UK workers with disabilities are more likely to view gig work as their primary income source.

  • UK workers in transportation services represent 41% of the gig economy workforce.

  • London has the highest concentration of gig economy workers in the UK.

  • 16% of gig workers who see it as their main income want longer hours at their basic pay.

  • 73% of gig workers engage in service-based work.

Gig Economy — Global Statistics

Gig workers make up 12% of the global labor force in 2023.

According to World Bank data, there are a total of 545 online gig work platforms in the world, encompassing 186 countries. Moreover, almost three-quarters of the platforms are regional or local, which is why they’ve gone under the radar in other reports.

There are around 435 million online gig workers in the world.

Due to focusing on English-based gig platforms and global instead of regional gig companies, previous reports underestimated the number at only 153 million. Another insight allowed by this wider scope is that low- and middle-income countries make up 40% of traffic to gig platforms.

50.9% of the total US workforce will do freelance work by 2027.

Freelance gig economy statistics show a growth tendency across global regions. By 2027, experts predict that 86.5 million people will be freelancing in the United States, making it one of the most concentrated gig markets in the world.

There’s a mass underpayment crisis in the Australian gig economy.

In Australia, 45% of gig transport workers earn below the $21.38 per hour minimum wage; for those working over 40 hours, it's 66%. Food delivery (57%) and rideshare (44%) workers are disproportionately affected. Gig economy statistics in Australia expose that this may be the largest case of mass underpayment, impacting 90,000–12,000 individuals.

India's gig economy is estimated to grow by 200% by 2029.

The Indian gig workforce is set to reach 23.5 million by 2029, marking a 200% increase from the current 7.7 million. Youth participation surged eightfold between 2019 and 2022, while women's involvement doubled. Aon's survey indicates that 65% of companies plan to expand their gig workforce. Gig economy statistics in India find that these jobs could contribute 1.25% to India's $5 trillion GDP by 2025.

The number of people with side hustles in Canada doubled in 2023.

In Canada, 28% of adults (8.75 million) engage in gig work, doubling from 2022, with 74% treating it as a side hustle. Economic concerns, including a cost of living rise, drive this trend. However, 51% haven't informed their primary employers, raising income transparency issues. Notably, 63% attribute their gig involvement to the increasing cost of living, according to gig economy statistics in Canada.

Singapore's gig workers have been hit hard by inflation and interest rates.

Singapore's gig workers and low-income individuals are disproportionately affected by high inflation and interest rates, reveals a recent study of 1.2 million customers in May 2023. With an expense-to-income ratio of 112%, gig economy statistics for Singapore show that gig workers' savings can only cover 1.7 months of expenses, well below the recommended range.

Malaysia's gig economy consists of 3.9 million workers.

Gig economy statistics in Malaysia find that 25% of the workforce, totaling 3.9 million, engages in the gig economy, primarily e-hailing and delivery services. Fueled by rising inflation, this sector is set to become the largest employment group. The Malaysian government has allocated about $8.5 million in 2023 to benefit 30,000 gig workers.

General Gig Economy Statistics for the UK

The gig economy represents just 1.4% of the UK workforce.

The gig economy is considerably smaller than earlier believed. The latest gig economy estimates, drawn from the January–March 2022 Labour Force Survey, indicate just under half a million people (463,583) or 1.4% of the total employed workforce in the UK are engaged in gig work. The survey's large sample of 79,561 people provides the most accurate snapshot to date.

22% of men consider the gig economy their primary income source, compared to 16% of women.

UK gig economy statistics show that men are more likely than women to consider the gig economy their main income source. Men make up the majority of people working in transportation services (75%), couriers (79%), and food delivery drivers (71%). The gender difference is less pronounced in manual personal services, where men make up 53% of the workforce.

93,898 people in the UK depend on gig economy income as their primary source of earnings.

The LFS (labor force survey) found that 20.3% of gig workers, totaling 93,898, depend on the gig economy. Private hire drivers and couriers (36%) and food delivery workers (30%) are more likely to earn their primary income from gig work, while manual and desk-based services workers (16% and 17%) depend on this form of work less. UberEats research shows only 36% of the workers rely solely on app earnings.

Ethnic minorities (24%) are more likely to rely on gig work as their main income compared to those with a white ethnic background (19%).

UK ethnic minorities in the UK gig economy make up 38% of private hire drivers, making it the most diverse subsegment of gig workers. This also applies to food delivery drivers (34%) and couriers. On the other hand, only 8% of people providing manual personal services have an ethnic minority background.

In the UK, 24% of gig workers in manual personal services are Equality Act disabled, compared to 15% of the overall workforce.

Workers with disabilities (29%) are also likely to view gig work as their primary income source compared to those without disabilities (19%). This highlights potential accessibility advantages but underscores risks associated with health challenges. Consideration of the gig economy's interaction with the benefit system is crucial for the disabled on-demand workforce.

74% of gig economy workers who rely on it as their primary income identify themselves as self-employed.

A significant 74% of gig economy workers who rely on it as their primary income consider themselves self-employed, showing that they treat gig work as their main occupation. By contrast, only 34% of other gig workers consider themselves self-employed.

73% of gig workers engage in service-based work.

The UK gig economy revolves around service-based work, with 53% in desk-based services, 20% in manual tasks, 18% in food delivery, and 12% in courier services. Private hire drivers, accounting for 11%, round out this diverse landscape. Individuals often engage in multiple categories simultaneously, highlighting the multifaceted nature of service-oriented gig work.

Workers in transportation services represent 41% of the gig economy workforce.

Transportation services, often presumed to dominate the gig economy, make up less than half of gig economy jobs in the UK. Only around 10% (52,898 people) of workers are private hire drivers, and around 18% are food delivery drivers. Couriers, numbering 56,649, play a role with potential overlap.

UK self-employment peaked at 5 million pre-COVID, dropped to 4 million in winter 2021, and rose to 4.2 million in Q1 2023.

From 2019 to Q1 2023, UK self-employment fluctuated. Pre-pandemic, it peaked at 5 million. During COVID-19, some shifted to employee status, drawn by schemes like furlough. Off-payroll working rule reforms and the Uber case also impacted self-employment. By Q1 2023, self-employment rose to 4.2 million, or around 7.5% of the working population of the UK.

Couriers have the oldest workforce, with 43% aged 50 or above.

The age distribution in the UK gig economy mirrors the broader workforce, with manual and desk-based service workers skewing slightly younger than transportation roles. UK employment statistics by sector show that couriers feature an older demographic, with 43% aged 50 or above.

London has the highest concentration of gig economy workers.

In London, gig economy employment accounts for 2.4% of total employment, totalling 115,043 workers. Other UK regions range from 0.8% to 1.8%, with Scotland and the southeast having the lowest proportions of gig workers at 1.8% and 1.5%.

16% of gig workers who see it as their main income desire longer hours at their basic pay.

When it comes to gig economy jobs in the UK, 16% of primary income earners want more work hours, versus 12% for others. Overall, 13% of gig workers seek increased hours. Preferences vary with 20% among food delivery workers, 18% among people carrying passengers, 11% among manual service workers, 9% among desk-based service providers, and 6% among couriers.

28% of self-employed people in the UK struggle with financial services.

At the same time, self-employed Britons are twice as likely to say they had issues accessing basic banking services such as savings or current accounts. With many of them relying on apps for work, and without protections that regularly employed people have, gig workers and self-employed people need reliable online banks. The best online banks in the UK solve several common problems: international transfers, savings accounts, and fees for gig workers with irregular income.

Hourly Rates for Gig Economy Jobs in the UK

Uber drivers make £10.13 an hour on average.

The typical part-time Uber driver salary in the UK varies between £16,000 and £35,000 per year. This figure varies based on factors such as peak hours and ride demand. Surge pricing during peak periods can substantially increase earnings, though it may impact passenger demand due to higher fares.

For a self-employed bookkeeper, the hourly rate varies between £12.34 to £19.00 per hour.

Bookkeeping costs vary based on experience, task complexity, location, and business type. Experienced bookkeepers charge higher rates (average £12.34 to £19.00 per hour). Complex tasks, geographical areas with a higher cost of living, and different business needs can influence costs.

Deliveroo pays around £14 per hour, making it the best paid delivery job in the UK.

Which food delivery service pays the most in the UK? Stats show that earnings for UK food delivery drivers vary among major services. Deliveroo pays around £14 per hour, using a per-drop model. JustEat guarantees at least minimum wage, averaging £9.78 per hour. UberEats drivers earn around £9.81 per hour with a pay matrix. Hidden costs, like fuel and insurance, impact the overall income of drivers.

Gig Economy Statistics in the UK: The Takeaway

In the UK, the gig economy encompasses 4.4 million individuals weekly, constituting 1.4% of the workforce. Contrary to assumptions, gig workers extend beyond ride-hailing and food delivery, with a significant number involved in service-based work. Ethnic minorities and those with disabilities find the gig economy more central to their income.

Gig economy statistics indicate that London stands out with the highest concentration, hosting 115,043 gig economy workers. The age distribution reveals that couriers have the oldest workforce, with 43% aged 50 or above. This dynamic landscape shapes not only the workforce but also raises questions about income security and job diversity in the UK.

FAQs

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Contributors

Dunja Radonic
Dunja is an English Literature graduate with years of experience as a writer and translator. She doesn't mind diving into as many reports and numbers as she can—especially about topics like crypto that still need some translating to the public—’cause she loves to get the message across. When she's not working, you'll find her running wild with her pack of dogs, playing board games, or bingeing on pop science videos.
Karen Idorn
Fact Checker
Karen Idorn