The Gig Economy

What is The Gig Economy?

Within Economics & Civics, which covers money, markets, business, government, law and citizenship: how societies are organised and run, this topic explains The Gig Economy. Economics and civics topics explain how money, markets, laws and government affect people, so each topic here pairs a clear definition with a model.

Check that you can explain The Gig Economy in your own words and give one example from everyday life. If you can do that, you have understood the core idea.

Understanding The Gig Economy helps you read the news critically and weigh up policies, choices and arguments about society.

The Gig Economy in detail

The gig economy is a labour market based on short-term contracts and freelance work, often arranged through digital platforms such as Uber, Deliveroo and Fiverr, instead of permanent jobs. Workers are often classed as self-employed and paid per task.

Benefits include flexibility, easy access to work and extra income. Drawbacks include irregular earnings, no sick pay, holiday pay or pension, less job security and limited rights, and disputes over whether workers should have employee status. Governments and courts are working out how to protect gig workers, and the number of people in this type of work is growing.

How the interactive helps you understand The Gig Economy

Watch the network in the interactive. Use any sliders or buttons it offers to change the values and see how the network responds.

Before you change anything, predict the result. Then change one value at a time and check whether your prediction was right. This is a quick way to build a correct mental model of The Gig Economy.

Real-life uses and examples

• Explain The Gig Economy to a classmate using a choice you make yourself, such as spending pocket money.
• Give a balanced answer about The Gig Economy by considering more than one point of view.
• Relate The Gig Economy to a news story about prices, jobs, elections or government spending.

Common mistakes to avoid

• Giving an opinion without evidence or a clear economic or civic reason.
• Confusing a short-term effect with a long-term one.
• Learning the definition without testing it. Use the quiz and the interactive to check that you can apply the idea.