Gig Work Becomes Primary Source of Income for Majority of Workers, Providing Financial Security Amid Turbulent Economic Times
Marqeta (NASDAQ: MQ) and Branch released their third annual Gig Payments Report, revealing that gig work is increasingly relied upon as a primary income source due to rising inflation. The report, based on a survey of over 1,000 gig workers, found that 61% now rely on gig income, up from 21% in 2021. Economic instability has led 49% of workers to consider leaving traditional jobs for gig opportunities. Inflation pressures are significant, with 63% of respondents taking up additional work due to rising costs in essentials like gas and groceries. Speed of payment is crucial, as 79% would prefer instant payment options. The report highlights a shift towards digital financial services, with 65% of gig workers favoring mobile wallets.
- 61% of gig workers now rely on gig work as their primary income, a significant increase from 21% in 2021.
- 49% of workers are considering leaving traditional employment for gig opportunities, showcasing the growing reliance on gig work.
- 63% of workers are picking up more gig jobs due to inflation, indicating a strong demand for gig work.
- 79% of surveyed workers prefer platforms that offer instant payment options, highlighting an opportunity for Marqeta's services.
- The rise in workers with $0 savings for emergencies increased from 31% to 37%, indicating financial instability among gig workers.
- Gig workers cited home/rent affordability (73%) and utility bills (61%) as their top financial concerns, reflecting economic pressures.
Third annual Gig Payments Report from Branch and
Among workers surveyed,
“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 (
“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 (
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
saved in case of emergency rose to$0 37% this year, up from31% a year ago. Millennial gig workers in particular are feeling the pinch, with41% having saved.$0
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, with83% 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 while10% wanted to receive their payments anytime they requested.
To see the full report, click here.
About Branch
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,
About
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.
Forward-Looking Statements
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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Branch
press@branchapp.com
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