Labour Market Flexibility & the UK Gig Economy I Edexcel Essay Plan

In this A-Level revision video, we break down a 25-mark essay on the impact of labour market flexibility on worker welfare in the UK gig economy—a hot topic that could easily come up in your exams. Think Uber drivers, Deliveroo riders, and the growing debate between freedom and insecurity at work.

📌 Keynote Summary (Essay Breakdown):

1. Context & Definition:

Over 4.4 million people in the UK work in the gig economy.

Many lack formal contracts—raising questions about flexibility vs. insecurity.

2. 📈 KAA Point 1 – Positive Impact:

Flexible hours offer better work-life balance, especially for students and carers.

Over 56% of gig workers are aged 18–34—often using gig work to enter employment.

Labour market flexibility can reduce economic inactivity and support UK growth.

3. ❗ Evaluation Point 1 – Limits of Flexibility:

Many workers face algorithmic pressure to work unsociable hours.

A significant number earn below the minimum wage after costs.

Platforms may exert monopsony power, reducing both wages and employment.

4. 📉 KAA Point 2 – Erosion of Job Protections:

Gig workers often miss out on sick pay, holiday pay, and redundancy rights.

63% have under £1,000 in savings, making them vulnerable to income shocks.

5. 🧭 Evaluation Point 2 – Signs of Reform:

2021 Supreme Court ruling granted Uber drivers worker rights.

Some platforms now offer insurance and holiday pay—but not universally.

6. 🧠 Final Judgement:

While flexibility offers access and autonomy, the lack of protections often leads to greater insecurity.

The overall impact on welfare is more negative than positive, with 1 in 10 UK workers affected.