According to new research from the Chartered Institute of Personnel and Development (CIPD), 4% of UK working adults aged between 18 and 70 are working in the gig economy, and 63% of them believe the government should regulate the gig economy to guarantee them basic employment rights and benefits such as holiday pay.

The CIPD report, ‘To gig or not to gig: Stories from the modern economy’ reveals that approximately 1.3 million people are now engaged in the gig economy. The report is based on a survey of 400 gig economy workers and more than 2,000 other workers, as well as 15 in-depth interviews with gig economy workers.

The research also found that 14% of respondents said they did gig work because they could not find alternative employment. The most common reason for taking on gig work was to boost income (32%). Overall, gig economy workers are also about as likely to be satisfied with their work (46%) as other workers in more traditional employment are with their jobs (48%).

However, there were concerns raised by some workers interviewed for the report about the level of control exerted over them by the businesses they worked for, despite them being classified as self-employed.

“It is often assumed that the nature of gig work is well-suited to self-employment and in many cases this is true,” Peter Cheese, Chief Executive of the CIPD, said. “However, our research also shows many gig economy workers are permanent employees, students, or even the unemployed who choose to work in the gig economy to boost their overall income.”

Findings from the study also showed that 57% of gig economy workers agree that gig economy firms are exploiting a lack of regulation for immediate growth.

Furthermore, 50% also agree that people working in the gig economy choose to sacrifice job security and workers’ benefits in exchange for greater flexibility and independence.

Gig economy workers were equally likely to agree (36%) as disagree (35%) that ‘the gig economy should not be regulated and companies should compete to offer workers fair pay and benefits, even if it means less income and job security for people’.

The report also reveals that 25% of gig economy workers say it is their main job, suggesting most use it to boost their overall income rather than depend on it. However, 60% say they don’t get enough work on a regular basis in the gig economy, and the research shows that income earned from gig work is typically low, with median reported income ranging from £6 to £7.70 per hour.

“Our research suggests that some gig economy businesses may be seeking to have their cake and eat it by using self-employed contractors to cut costs, while at the same time trying to maintain a level of control over people that is more appropriate for a more traditional employment relationship,” Cheese said. “Many people in the gig economy may already be eligible for basic employment rights, but are confused by the issue of their employment status.”

“In addition, it is crucial that the Gangmasters and Labour Abuse Authority is given sufficient resources to monitor and enforce compliance with existing employment rights,” Cheese said. “There is also a case to strengthen the role of the Advisory, Conciliation and Arbitration Service to allow it to proactively work with business to improve their working practices if they are in danger of falling foul of the law through a lack of resources or ignorance.”

“It is crucial that the government deals with the issue of employment status before attempting to make sweeping changes, else they risk building foundational changes on shifting sands,” Cheese said. “We welcome the Chancellor’s decision to wait for the Taylor Review before looking at making any changes in tax levels. We would like to see a full consultation on the complex issue of employment status, which explores whether it is possible to have greater clarity and consistency on this issue across employment, tax and benefits.”

As far as income satisfaction for gig economy workers, 51% say they are satisfied and 19% dissatisfied with the level of income they receive. This is s higher than the level of satisfaction with pay reported by other workers, where 36% are satisfied and 35% are dissatisfied.