Words making the headlines – gig economy

DeliverooWhen the business and finance sections of British newspapers are not expressing concerns about Brexit, they’re discussing the gig economy.

So, what is the gig economy? Let’s start by looking at the meaning of gig. For about 100 years, a gig was a single performance by a musician or group of musicians. For example,

Did you get tickets for the Ed Sheeran gig at the O2 Arena?

We’re playing a gig at the Rose and Crown* tomorrow. Tell your friends.

In the last few years, the word gig has been adopted by freelance workers. They used it to describe a single job for a client.

I’ve got a 2-week gig consulting in Dubai for IST Engineering.

So, a gig is a single event or piece of work. The gig economy refers to companies who employ and pay people on the basis of individual jobs.The most famous examples are the taxi firm Uber and the food delivery company Deliveroo.

Why is the phrase gig economy in the headlines?

This is because of the controversy about the status of people who work for companies like Uber and Deliveroo. At the moment, the people who drive the taxis or deliver the food are classified as freelancers or independent contractors.  The companies say that these people benefit from the flexibility of this arrangement. They can work as much or as little as they want.

The workers see the situation differently. Many of them rely on these companies for most of their income but they only get paid when the companies give them a gig. When the workers divide the amount of money they earn by the number of hours they’re available for work, they say that they earn less than the minimum wage.

It’s not only the money. An employee with a traditional contract has legal benefits. For example,

Paid holidays – This is when you’re guaranteed holiday time while still receiving your salary.

Sick leave – This is when you continue to receive your salary for a period of time while you’re unable to work because of your health.

Maternity and Paternity leave – This is when you receive your salary while you’re away from work after you have a baby (maternity leave) or your partner has had a baby (paternity leave).

Gig economy workers don’t receive these benefits because they are classified as independent contractors. They argue that covering the costs of these things pushes their calculated hourly-rate even lower while the company they work for has higher profits because they don’t have pay for these benefits.

The British government has just published a long report on the future of work in the UK. One section of the report is about the gig economy.

What makes so many people nervous is that many of the companies that benefit from the gig economy are the technology companies that are changing the world in so many ways. What about your job? Do you think you’ll have to become a gig worker in the future?

*Rose and Crown is a very common pub name in the UK.


If you would like to suggest a word from the news for future blog posts, please use the comment box.

Practise your listening. Click on play to hear Barney reading this text.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.