Throughout the pandemic, workers flocked to the gig economy looking to make up for lost income or deficiencies in their full-time income and to take advantage of the influx in available jobs. While accelerated over the last year, this trend shows no signs of slowing down, as recent Monster data showed that 92% are now considering gig work. For many, Covid-19 and the shift to remote work has led to a desire for flexibility over when, how and where they work.
We also know these workers are deeply concerned with financial matters, like meeting day-to-day expenses or building their emergency funds. Unfortunately, however, a shift to gig economy work alone is rarely a path to financial flexibility or freedom; many face income volatility and major cash gaps, as disposable income is needed to successfully run their gig businesses. In fact, research from the Federal Reserve showed 58% of gig workers would struggle to cover an unanticipated $400 expense. Not only does this segment of the workforce face inconsistencies in demand for their work — particularly in the delivery and transportation industries — but they also incur a high cost for the nature of their work, including vehicle fuel, maintenance and insurance expenses.
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