How gig work is helping employees brace for a recession

Employees across every industry may be facing unprecedented times, but at least they're facing them together.  

Gig workers and corporate workers alike — 78% and 75%, respectively — are worried about their financial health should a recession hit in the next year, according to a new report from online staffing platform Wonolo. Neither community feels prepared to pay for all the necessities of their family with their current income — but will their respective relationships to their employers impact their ability to weather a downturn? 

"The last recession we had back in 2008, surprisingly, corporate workers were less prepared than gig workers at the time — once their jobs were impacted they didn't have access to different contingent work because it was just not familiar for them," says Young Kim, founder and CEO of Wonolo. "Gig workers were better prepared because they were a lot more adaptable to volatility."

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This time around, however, the playing field has become more level, as the lines between gig work and corporate work have never been blurrier. Side hustles have become increasingly popular among salaried workers, with 28% of full-time employees stating that they also have a part-time job or side gig, according to Wonolo.

"Having more options gives them more of a safety net," Kim says. "A guarantee that even if something were to happen to their permanent jobs, they may have something that can bridge the gap between what they're faced with and where they need to get to." 

As for the gig economy, more and more innovators in the space are pushing for better benefits for non-salaried workers which can create an additional safety net for that demographic  — including earned-wage access, eligibility for a W2, paid sick leave and even health insurance. 

"We're excited about the many up-and-coming companies that are rethinking what benefits mean for gig workers," Kim says. "They're working on how to ensure they have access to benefits so that they feel valued and supported through recessionary times."

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Despite the fact that nearly half of both gig workers and corporate workers are living paycheck to paycheck, the pandemic-induced change in our relationship to work has created a silver lining — more flexibility for all workers. According to Wonolo, 19% of gig workers report the ability to work any time or day as they get their work done; with corporate workers following close behind at a comparable 14%.

There is no way to fully anticipate how a turbulent market will affect every employee, but according to Kim, the combination of expanded flexibility and enhanced benefits will ideally boost stability across workforces.  

"We will still continue to see strong demand [for support] on both sides," Kim says. "But In today's world, as long as the workers are prepared to embrace the different types of options that they can tap into, at least both demographics will be equally prepared."