BMO Wealth Management has published a report finding that most of Canada’s gig economy workers are worried about a lack of employee benefits – a striking observation, as the popularity of on-demand temporary employment grows in the country.
The report, “The Gig Economy: Achieving Financial Wellness with Confidence,” is based on a survey of over 1,000 Canadian small business owners.
Of the 1,000 individuals surveyed, 40% had worked, or are currently working, as self-employed professionals pursuing contract or freelance project-based careers. Sixty per cent (60%) of the small business owners said they became self-employed by choice. Forty per cent (40%) of the respondents identified as being part of the gig economy now or in the past.
When it came to reasons for taking gig economy contract work, the most popular ones were: to enjoy autonomy and control (49%); making extra money on the side (49%); balance career and family needs (42%); and because it was the only way to make an income (27%).
Among the age groups, Boomers were more likely to value autonomy and control when taking freelance jobs (70%), or felt that it was their only option to earn income (35%). Generation Xers placed more value in balancing their career and family needs compared to the other groups (52%). And Millennials were more inclined to work in the gig economy to make extra money on the side (53%), or until they found a better job (30%).
BMO also asked participants what their biggest challenge was with the gig economy.
Sixty-nine per cent (69%) said that their biggest issue is that they have no benefits, such as medical, dental, or disability. By contrast, 55% said not getting paid when sick is a major concern, while 41% said not earning enough is a serious problem they face while working for the gig economy.
“While the freelance economy can be enticing and lucrative, offering flexibility and the option to work within one’s specialty or have a better work-life balance, it comes with its own set of challenges,” commented BMO Wealth Management wealth institute director Chris Buttigieg.
