Wonolo Report Reveals Recession Hardships for Gig and Corporate Workers

Roughly 3 in 4 gig and corporate workers worry about their financial health if a recession were to hit in the next year, and findings reveal corporate workers are using additional gig work to supplement their income

Wonolo, an on-demand job marketplace that connects workers to hourly and flat-rate jobs posted by thousands of businesses across the United States, released The State of Financial Health of Today’s Workforce report, dialing into how the current economy is impacting gig workers and full-time corporate workers.

The report reveals that a vast majority of corporate workers (92%) and gig workers (85%) said the cost of their bills have increased in the last six months, but just two in five corporate workers (41%) and gig workers (42%) have received a raise, or cost of living increase, in the last six months. Additionally, 55% of gig workers and 42% of corporate workers are living paycheck to paycheck.

Nearly the same number of corporate workers (75%) and gig workers (78%) worry about their financial health if a recession were to hit in the next year. A quarter (25%) of corporate workers don’t feel they can comfortably pay for all the necessities of their family with their full-time job income, while almost a third (32%) of gig workers feel the same. However, 28% of corporate workers have a part-time job or side gig in addition to their full-time job – with Gen Zers (44%) the most likely to take on side work.

“Volatilities in our economy are impacting workers across the board. Our data shows corporate workers supplementing their income with additional gig work to be able to pay their bills,” said Yong Kim, CEO of Wonolo.

Yong added, “Gig workers are increasingly playing a key role in filling critical jobs for our economy to thrive. Yet, companies have not paid close attention to the needs of gig workers. Investing properly in all types of workers will help create a more agile labor force across the nation that can adapt to economic change.”

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Additional findings from the report include:

Both gig and corporate workers experience mental and physical health impacts from their jobs, but employers can combat the effects with benefits adjustments

• Nearly one in three (29%) of gig workers think their job negatively affects their mental and physical health – the top three things that would help improve their health are designated mental health days (76%), better financial benefits (73%), and better health benefits (69%).
• In comparison, a quarter (25%) of corporate workers think their job is negatively affecting both their physical and mental health and the top three things that would help improve their health are designated mental health days (76%), if their company hired more workers to lessen the workload (72%), and more flexibility in their scheduled work hours (71%).

Despite corporate workers often having more benefits, gig workers win out on flexibility

• While 61% of both corporate and gig workers have set work hours that can be adjusted in special cases, gig workers tend to have more flexibility overall, with 19% of gig workers able to work any time or day they want as long as they get their work done, compared to 14% of corporate workers.
• Working 9-5 may be the traditional schedule that 88% of corporate workers follow, but just 66% of gig workers take on work during that time, with a quarter (26%) most likely to take on work at night and 8% most likely to take on work over the weekend, when it might be more convenient.

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Corporate Gen Zers fear job loss in a recession, and it‘s impacting their mental health

• Corporate Gen Zers (35%) are the most worried about losing their job if a recession were to happen in the next year, compared to Millennials (19%), Gen Xers (23%) or Baby Boomers (13%).
• Corporate Gen Zers (41%) are the most likely to miss family vacations because of work, compared to Millennials (34%), Gen Xers (28%) or Baby Boomers (14%), which may contribute to why they are the most likely (24%) to say their job negatively affects their mental health.

Gig workers get their start for a variety of reasons – from passion to money – but younger workers tend to think most about gaining experience

• Roughly 1 in 3 of gig workers (32%) went into their line of work because they’re passionate about the work, while 21% went into it because they like the flexibility, 16% were in between salaried jobs and needed to make extra money.
• Gen Z gig workers (16%) are nearly twice as likely as other generations to go into their line of work to gain more experience for other opportunities.

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