A recent study from the University of North Carolina at Greensboro revealed that numerous gig workers faced financial difficulties during the COVID-19 pandemic, dealing with issues such as food insecurity and challenges in covering bills.
“In a nutshell, our study shows gig workers were harmed more by the COVID-19 pandemic than any other workers,” the researchers explain.
The researchers argue that the results challenge the widespread belief in the United States that gig work offers a sustainable alternative to traditional employment. These findings indicate that gig work can create difficulties for individuals in making ends meet financially.
“We have this very romantic narrative in this country that we’re the land of opportunity,” they explain. “If you want to start your own business, you can go for it. But when you peel that narrative back, you begin to realize that people who are doing gig work are often struggling for economic survival.”
Insecure work
The study discovered that around 33% of surveyed gig workers faced food insecurity, 12% had missed housing payments, and 33% had unresolved credit card bills between April 2020 and June 2021. Economic challenges were more pronounced for gig workers with children, those with limited savings, and those juggling multiple gig jobs.
The researchers argue that the unpredictable nature of gig work contributes to heightened financial difficulties. For instance, a food delivery driver might experience a busy night followed by a slow day, creating unpredictable income fluctuations that make it challenging to cover expenses and plan ahead.
These findings are pertinent to the roughly 15% of Americans who have engaged in gig work at some point, according to the PEW Research Center.
The study’s strength lies in its robust sample of gig workers, with the Socioeconomic Impacts of COVID-19 Survey from the Social Policy Institute at Washington University in St. Louis incorporating responses from 4,756 workers representing diverse ages, incomes, genders, races, and ethnicities. Approximately 29% of respondents had participated in gig work in the three months leading up to the survey.
“The bottom line is that it should not be this difficult for people to meet their basic needs because it has a toll on their mental health, a toll on their physical health, and it takes time away from their families,” the authors conclude.
