The Challenges & Benefits of the Gig Economy for Brit-Asians

The gig economy, characterised by flexible, short-term contracts or freelance work, has seen significant growth in the UK.

This shift offers unique opportunities and challenges, particularly for British Asians from Pakistani, Indian, and Bangladeshi backgrounds.

Approximately one in seven adults in the UK are engaged in some form of gig work.

Gig economy workers cover a wide range of jobs across sectors, including rideshare drivers, takeaway delivery drivers, freelance copywriters, content creators and digital consultants.

In 2023, the Chartered Institute of Personnel and Development (CIPD) estimated that the gig economy comprised 1.4% of UK workers—roughly 464,436 people.

Estimates based on CIPD data suggest that in 2024, the gig economy had grown to around 1.7 million workers.

DESIblitz explores the challenges and benefits of the gig economy for British Asians.

Benefits of the Gig Economy for British Asians

The gig economy provides flexibility, allowing individuals to balance work with personal commitments.

This adaptability is especially beneficial for those pursuing education or managing family responsibilities.

British Bangladeshi Amir* revealed:

“I care for my parents, so delivering parcels and food deliveries is good. It fits around me, and I’m not fixed to set hours.

“I’ve even done work in hotels and things.”

Some take on gig jobs to supplement their primary income to earn extra money, but for others, working in the gig economy is their full-time job.

For example, single parent Sonia* said:

“I work in cleaning, it’s freelance contracts – short and long. It’s not a side hustle.

“It’s great in so many ways. It’s flexible, and it gives me room to be with kids.”

“And I’ve done it a while, so my pay is very good now. I’ve built a reputation and get referrals.

“But starting out was hard, involved blood and sweat, and there are still hard times.”

The gig economy can be a vital employment avenue for British Asians and other minority groups.

The diversity of roles within the gig economy allows individuals to leverage various skills.

From desk-based services like web development and translation to manual tasks like cleaning and decorating, gig work enables British Asians to utilise their talents across sectors.

This variety and flexibility can increase job satisfaction and the potential for good earnings.

Challenges Faced by British Asians in the Gig Economy

Despite its advantages, the gig economy presents several challenges.

A significant concern is the lack of employment rights and protections.

Most gig workers are classified as self-employed, which excludes them from benefits like sick pay, holiday entitlement, and job security.

This precarious status can lead to financial instability.

Pay disparities are another issue that continues to cause tension and heated discussion.

In late 2024, research by Rodeo, an app that helps gig economy workers track their payments, indicated that Deliveroo drivers were often paid less than £12 per hour.

The minimum of £12 was agreed upon with the GMB union in early 2024 as part of the first-ever union ­agreement to cover earnings in the gig economy.

Drivers have said factors like unpaid waiting times and unrealistic delivery estimates can contribute to lower earnings.

British Pakistani Imran*, who worked as a food delivery driver for a year and as an Uber driver for two years, stressed:

“It sounds good and can be great for extra cash, short-term, side hustle or if you’re a carer. But definitely a lot of space for exploitation.

“People don’t realise the cut of the money companies take and what we don’t get paid for.”

“I’m thankful that neither was my main job, and I could quit. I have friends who can’t. It’s their only job or one of two or three.

“I do it now if I need a little extra cash on the weekend.”

British Indian Ruby* stated:

“I work in the media and content creation industry, and my contracts are freelance. I’m classified as an independent contractor.

“One place I’ve been two years, but I’m still not classified as an employee in documents, so the company escapes doing a lot.

“And they give me other short-term jobs here and there. I like the work, but it can be a struggle; they save money, but I watch the pennies.

“No annual leave or sick pay, and it’s minimum wage, which they choose.”

British Asians may face systemic barriers within the gig economy.

Research indicates that ethnic minorities are overrepresented in gig work. This over-representation raises concerns about potential exploitation and the need for targeted support to ensure equitable treatment.

Economic Implications and Challenges

The gig economy’s expansion has broader economic implications.

While it offers businesses cost savings and flexibility, it also contributes to job insecurity and worker income instability.

This instability can hinder long-term financial planning and exacerbate economic disparities.

While gig work can be a choice, for many British Asians, it may also be a financial necessity.

Research has found that in the UK, Bangladeshi and Pakistani households are the worst affected by poverty.

The Joseph Rowntree Foundation’s (JRF) research shows that in 2022-23, 56% of Bangladeshi households and 49% of Pakistani households lived in poverty.

This means their income was below 60% of the median after housing costs. While these figures have improved since 1994-1995, they are the highest in Britain.

In 2023, the CIPD stated:

“Our report highlights two groups to be more reliant on gig economy work for their income: ethnic minorities and people with disabilities.”

CIPD research found that approximately 24% of gig workers from ethnic minority backgrounds consider it their primary income, compared to 19% of their White counterparts.

Also, it was found that men are more likely than women to rely on gig economy work as their main income source.

Accordingly, for British Asians, who may already face economic challenges, participation in the gig economy can both alleviate and amplify financial pressures.

While gig work provides immediate income opportunities, the lack of employment protections and the potential for lower wages can perpetuate economic vulnerability.

Consequently, addressing these systemic issues is crucial to ensure that the gig economy is a pathway to financial stability rather than a cycle of insecurity.

Governmental interventions would be of value to enhance the gig economy’s benefits and mitigate its challenges.

There have been calls for clarifying employment classifications to provide gig workers with essential rights and protections.

For example, abolishing ambiguous ‘worker’ statuses could offer more certainty and align tax and employment statuses.

The gig economy presents both opportunities and challenges for British Asians.

While it offers flexibility and diverse income avenues, it also brings issues of job insecurity and potential exploitation.

Addressing these challenges through targeted policies and support systems is essential to ensure that the gig economy contributes positively to the economic well-being of British Asians and the broader workforce.

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