Gig Economy Workers Would Prefer Security Over Higher Earnings, Study Finds

(Bloomberg) -- Gig economy work is a necessity rather than a choice and those reliant on it would be willing to earn less in exchange for more job security, according to a study of workers in the U.K. and the U.S.

The report by the London-based Centre for Economic Performance calls into question claims that self-employment, freelancing and zero-hour contracts are prized over full-time and employee jobs by people who want flexible working arrangements.

Gig workers in both countries would be prepared to give up around half their hourly wage for a permanent contract over a one-month one, the analysis of 4,000 people found. They’d also be willing to sacrifice earnings for holiday and sick pay.

“Workers like knowing when their next pay check is coming, where it’s coming from and how much it will be,” said Nikhil Datta, who wrote the report published Tuesday.

The rise of the gig economy has been a phenomenon of the labor market since the financial crisis, with an estimated one British worker in 10 now doing jobs such as taxi driving, deliveries and cleaning to help make ends meet.

Drivers in major cities across Britain and the U.S. went on strike in May to demand better pay and conditions ahead of the stock market debut of Uber Technologies Inc.

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