One of the most important findings from our gig economy research is the role financial hardships and shocks play in the decision to become a gig worker.
These include things like job loss, work hours being cut, inability to work due to an illness or the need to care for someone, etc.
Our surveys show that 21% of on-demand gig workers - those that get work through online marketplace such as Uber, Upwork and Task Rabbit - reported they participated in this type of work to help them get through a financial hardship or shock.
We also found that 41% of on-demand gig workers had faced a financial shock or hardship in the last year.
We were reminded of how easy it is for many to face a financial shock by the Car & Driver article Cash-Strapped Shoppers Enter the Used-Car Market on the Losing End.
The article covers AAA data that about one-third of American drivers cannot pay for the average car repair, which is between $500-$600, without going into debt.
So a simple break down could lead to major financial problems for many Americans.
It also could lead to a 2nd job in the gig economy to help pay for the repair.
The reality is despite a strong economy and labor markets, a growing number of Americans live on the edge.
It’s also clear that our traditional safety nets are not working as well as they need to.
This means more people will face financial shocks and need highly flexible sources of supplemental income to get through them.
Which means more people will look to the gig economy for work.
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