Gig Work Becomes Primary Source of Income for Majority of Workers, Providing Financial Security Amid Turbulent Economic Times
Third annual Gig Payments Report from Branch and
Among workers surveyed, 61% cited that they complete gig work for their primary income, a nearly 3x increase from 2021, where 21% of those surveyed said the same. Hinting at increasing economic instability, the number of workers who have left, or plan to leave, full-time employment to join the gig economy increased by 40%, rising from 35% in 2022 to 49% in 2023. In addition, 55% of workers feel like they have more opportunities to pick up work this year compared to last year, and 66% of surveyed workers said they find it easy to pick up gig work.
“Our study makes it clear that gig workers rely on gig work to not only help them stay afloat during tough financial times, but to help them achieve financial stability,” said
Inflation continues to be a main driver for workers seeking gig work opportunities, with almost two-thirds (63%) picking up more jobs due to inflation and higher prices. Specifically, workers cited gas (85%), groceries (80%), and utilities (45%) as the top price increases that have impacted them the most in the past six months. Being paid faster after a shift is an incentive for many workers, with 79% citing that they’d choose one gig platform over another if it could pay instantly without fees.
“The speed and ease in which workers can not only find work, but also get paid are why they’re increasingly choosing the gig economy over traditional work to weather today’s economic challenges,” said Branch CEO
Amid rising economic instability, gig work provides workers with a sense of financial security. Fifty-three percent of workers feel more financially resilient to economic changes because of their gig work, and nearly half (49%) think their economic prospects are higher compared to working a salaried job. Among Gen Z gig workers surveyed, this number rises to 58%, demonstrating the evolving nature of traditional jobs. What’s more, the flexibility of hours they work (55%), higher earning potential (25%) and faster payments (10%) are what make them most likely to stay with a gig platform, with 19% of Gen Z gig workers surveyed selecting faster payments as a top reason to stay.
Additional findings from the Branch x Marqeta Gig Payments Report include:
Expenses Rise as Savings Fall
- Among top financial concerns, gig workers ranked home/rent affordability at the top of the list (73%), followed by utility bills (61%), groceries (57%), and auto expenses/transportation (47%).
- When asked about grocery expenses specifically, workers cited eggs (41%), meat/poultry/fish (39%), and milk/dairy products (9%) as the price increases most impacting their budgets.
The number of gig workers surveyed that have
$0saved in case of emergency rose to 37% this year, up from 31% a year ago. Millennial gig workers in particular are feeling the pinch, with 41% having $0saved.
Gig Workers Embrace Digital Payments, Financial Services
- Gig workers are among the growing demographic embracing digital wallets and financial services, with the majority (65%) confident enough to leave their physical wallets at home and rely on their phones.
- Over one-third of gig workers (34%) have turned to an online or digital bank for their primary banking services. They’re also open to more, with 83% citing they’re interested or would be open to financial services offered from the gig platforms they work with.
- When asked how frequently they’d like to be paid, over two-thirds of gig workers (68%) wanted faster, more flexible payments. Over half (58%) wanted to be paid at least daily if not after each job while 10% wanted to receive their payments anytime they requested.
To see the full report, click here.
Branch is the leading workforce payments platform that partners with businesses to accelerate payments and empower working Americans. Businesses turn to Branch to provide workers fast, easy access to pay. By replacing slow, expensive pay processes with one that works better for everyone, Branch empowers companies to better attract, engage, and retain their workforce. Workers that sign up with Branch can receive a zero-fee bank account, faster payments for completed jobs, rewards, and personal finance tools to help them manage their cash flow. Branch partners with the nation’s leading companies in healthcare, last-mile delivery, manufacturing, restaurants/hospitality, and logistics. Branch has been honored with a Webby Award — Best Financial Services, Fintech Breakthrough Award,
Marqeta’s modern card issuing platform empowers its customers to create customized and innovative payment cards. Marqeta’s platform, powered by open APIs, gives its customers the ability to build more configurable and flexible payment experiences, accelerating product development and democratizing access to card issuing technology. Its modern architecture provides instant access to highly scalable, cloud-based payment infrastructure that enables customers to launch and manage their own card programs, issue cards and authorize and settle transactions.
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this press release include, but are not limited to, quotations and statements relating to changing consumer preferences; increasing consumer adoption of certain digital payment methods, products, and solutions; which payment, banking, and financial services products and solutions may succeed; technological and market trends; Marqeta’s business; Marqeta’s products and services; and statements made by Marqeta’s senior leadership. Actual results may differ materially from the expectations contained in these statements due to risks and uncertainties, including, but not limited to, the following: any factors creating issues with changes in domestic business, market, financial, political and legal conditions; the effect of and uncertainties related to the global COVID-19 pandemic on
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