Gig Workers and the COVID-19 Economic Rollercoaster: Navigating Financial Hardship

Recent research has revealed that gig workers are more likely to experience financial hardship than non-gig workers. This is attributed to gig workers’ lack of access to benefits and job security as well as the inconsistent nature of gigs.

The study conducted over a two-year period surveyed over 6,000 gig workers and non-gig workers in the US and Australia. It found that gig workers are twice as likely to experience financial hardship than their non-gig counterparts.

The study also found that the risk of financial hardship was especially pronounced for those working multiple gigs. In general, gig workers lag behind non-gig workers in terms of income, job security, and access to benefits. As a result, they are more vulnerable to financial distress.

The findings of this study are concerning for businesses that rely on gig workers. Without access to benefits and job security, gig workers are more likely to experience financial hardship. This could lead to a decrease in productivity and an increase in turnover.

Businesses should be mindful of the risks associated with hiring gig workers. They should consider providing gig workers with benefits and job security to protect them from financial hardship. Additionally, businesses should ensure that gig workers are paid a livable wage and have access to resources for financial education and planning.

Ultimately, businesses should strive to create an environment that supports gig workers, ensuring they have the resources they need to thrive.

Gig Workers Solutions stands with Gig Workers.

This web page talks about:

• Gig workers’ hardships: A study found that gig workers experienced more financial difficulties during the COVID-19 pandemic than other workers¹. They faced food insecurity, trouble paying bills, and unpaid credit card debts.
• Gig work’s challenges: The researchers explained that gig work is often unreliable and unpredictable, making it hard for gig workers to plan ahead and meet their basic needs. They also said that gig work is not a sustainable alternative to traditional employment.
• Study’s strengths: The study used a nationally representative survey of 4,756 workers, including 29% who had engaged in gig work in the previous three months². The survey covered a range of demographic and economic variables.
• Researcher’s motivation: The co-author of the paper, Dr. Mathieu Despard, said he wanted to understand the structural barriers that prevent Americans from reaching their financial goals³. He said that gig workers should not have to struggle for economic survival.