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Experian surveyed 752 gig economy workers about their work and their personal finances on September 12, 2024. The sample was collected using a third-party company and was not from Experian's consumer credit database.
As the gig economy continues to evolve, more and more consumers depend on it not only for their own late-night cravings and weekly groceries, but also for at least some of their income. How gig workers, or independent contractors, are treated and even defined have become election issues at both the state and national levels in recent years.
There's no easy way to get one's arms around the size of the gig economy. The Bureau of Labor Statistics, for example, has found that only 1% of the total civilian labor force is "electronically mediated workers" (in other words, workers who use an app to get their next job or task), a percentage that appears entirely too low considering the millions of earners a leading rideshare firm employs. Meanwhile, depending on which data and definitions are being used, as much as one-third of the workforce could be considered gig workers.
But no one disputes that the number of gig workers is enormous, and that the gig economy is continuing to grow. This month, Experian got a closer look at the gig economy by asking a statistically representative sample of 752 gig workers across the U.S. about their jobs, how they get paid, and how they're managing their money and credit.
Rideshare Driving Is the Most Common Gig for Workers
Among the respondents who self-identified as gig economy workers, rideshare/delivery driver was most commonly selected as a worker's primary gig by far, with 27% saying that's how they earn most of their gig income.
Question: What type of work do you do for most of your independent or gig-based income?
Task-based work followed, with 14% prepared to help with home DIY projects and beyond; a similar amount, 13%, work in various freelance publishing gigs. Other roles reported (that didn't fit easily into the main categories) included food cart vendor, jewelry maker and tarot card reader.
Most Gig Workers Report Being Just So-So on Their Finances
When we ask gig workers about their financial situation, most weren't all that upbeat. Only
36% would describe their finances as good or excellent, while 45% said they were just fair or OK.
Question: How would you describe your overall financial situation?
Furthermore, nearly 1 in 5 (19%) said they were in a poor financial situation. Employment status may account for many of these particularly dissatisfied gig workers. Nearly all respondents who described their employment status as "unemployed" said their financial situation was poor, perhaps suggesting that these workers consider themselves in between jobs, and that gig work for them is perhaps just transitory.
Those in the Gig Economy Say They Have a Harder Time Obtaining Credit
Not having a steady income has always been a challenge for at least a portion of those who aren't earning income in an hourly or salaried position. When we asked workers how easy it would be for them to obtain credit today, those who relied on gig work for 75% or more of their income gauged their chances to get credit as more difficult than others.
Question: How would you rate your ability to obtain credit if needed?
Indeed, only 52% of gig workers whose gig work comprised three-quarters or more of their income said it would be easy or very easy for them to obtain credit, versus 72% of workers whose gig work is less than a quarter of their income. It's a tricky situation, especially when workers need to finance their own capital to stay employed: Cars and cleaning supplies cost money.
Although credit scores don't factor employment information or income, creditors often ask for that information before extending credit—not only for credit cards but also auto loans, personal loans and mortgages. Indeed, players in the financial services and tech industries have recognized the opportunity, offering financial products such as direct deposit, auto loans and buy now, pay later plans for independent contractors whose earnings are less consistent than those working on more fixed schedules.
Gig Workers Indicate They Are Generally Optimistic About Their Future
Despite challenges, financial and otherwise, nearly half of gig workers (48%) said they were optimistic or very optimistic about their financial futures.
Question: How do you feel about your financial future as a gig worker?
Similar levels of optimism prevailed throughout most cohorts, with one exception: younger gig workers. Only 37% of workers ages 18 to 24 said they were financially optimistic. They were also the group most pessimistic about their financial future, which echoes previous findings about Generation Z.
The Bottom Line
The gig economy, despite its elusiveness when it comes to measuring its size and impact, is reorganizing how millions of consumers earn and spend. When compared with more traditional forms of work, gig workers report difficulty accessing credit, especially when the work represents most of their income. Nonetheless, more workers, excepting the youngest gig workers, remain optimistic about their financial futures.