Insecure work and the gig economy: Employment in Britain worse than reported, study finds

Workers are increasingly turning to insecure work and the gig economy to make ends meet, according to new research which suggests unemployment in the UK could be worse than statistics show.

The UK unemployment rate hit 5.1% in October, according to Office for National Statistics (ONS) figures. That’s the highest point since January 2021.

A new report from cross-party think tank Demos and the Joseph Rowntree Foundation analysed 37,504 online forum posts from people in financial hardship between June and September this year.

The research found an increasing trend of people discussing insecure roles in the gig economy, either because of redundancy or as secondary work to cover gaps in their income. The posts were most like to reference roles like delivery driving for firms like DPD, Uber and Amazon.

Polly Curtis, CEO at Demos, said the findings show more people might be classed as employed or self-employed but may be in financial hardship and unable to access support.

“This research adds to a growing pool of evidence that financially vulnerable people are not getting the help they need in Britain today,” said Curtis.

“The latest employment figures tell a grave enough story, but we would urge policy-makers to give more consideration to those whose story isn’t told by these figures. “

Curtis said the group they identified, known legally as Limb (b) workers, need to be tracked through ONS figures while the group needs expanded employment rights.

Analysis of the online forum posts showed the personal impact of insecure work, telling stories of deteriorating mental health, financial stability and physical health from the from long hours and instability from certain gig economy roles.

Aleks Collingwood, partnership insight manager at the Joseph Rowntree Foundation, said: “This research places a spotlight on people in insecure roles who deliver vital services – from food deliveries to care – yet who lack the same protections as other employees. As the market for insecure work grows and more people depend on it to stay afloat, it is critical that their voices are heard in policymaking.

“The government has stated that it aims to improve employment protections and get more people into work. Political will is essential: there needs to be a genuine desire to end poverty, restore the social safety net, and support people living in financial hardship.”

Read more:

• The Employment Rights Act is here. Will 2026 be the year that work gets better?
• The Employment Rights Bill is a moment to celebrate – but the work is not done
• The gig economy and your finances: How to make it work for you

Labour’s Employment Rights Bill, offering more security for zero-hours workers, is due to get royal assent before Christmas.

The government is also expected to launch a consultation on employment status in 2026.

Curtis said that the legislation is a “win for restoring trust in the state” but said more needs to be done.

An ONS spokesperson told Big Issue that there is no agreed definition of a gig economy worker. That makes it difficult to measure and can lead to varying estimates.

“We collect a very wide range of information on jobs and employment, not just through surveys but also data from employer payrolls, the benefits system and from online job ads,” the ONS spokesperson said.

“Together this reflects many different facets of the labour market. This includes, among many other things, information on zero-hours contracts; the number of hours people work; their wages; and the quality of certain jobs.”  

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