How is the Gig Economy impacting financial services?
A wealth of new opportunities for participants from several industries to meet the evolving employment needs of Americans
New research from Packaged Facts examines the emergence of ‘non-benefit’ workers and the new landscape of employment.
Jan 23, 2019 — ROCKVILLE, Md., Jan. 23, 2019 /PRNewswire/ — From holiday spending hangovers to the government shutdown to simply filling free time, there’s been no shortage of factors motivating Americans nationwide to get their side hustle on early in 2019.
According to Packaged Facts in the new report The Financial Services Market: Targeting Gig Economy Workers, roughly 41% of Americans with a side hustle/gig cite the desire to supplement their income as the main reason for taking on the extra work. Likewise, about 15% of side giggers rely on these jobs as their primary source of income. Meanwhile, Packaged Facts found that for a select few—some 19% of gig workers—the side jobs play a role in leisure actives and are performed just for fun or as a hobby.
Excerpts fromThe Financial Services Market: Targeting Gig Economy Workers:
Welcome to the Gig Economy, where independent work arrangements, temporary and/or on-demand employment trends, working more than one “gig” at one time, globalization, digitization, work-at-home trends, and the gradual loss of employment benefits have converged to significantly impact the nature of employee-employer relationships and spur evolving ways to meet their needs.
For market participants, the first challenge concerns identifying which employed individuals are members of the Gig Economy and how to define who they are—especially when many have argued that the U.S. Bureau of Labor Statistics has under-represented the number of Gig Economy workers—and as reported by the Wall Street Journal (January 7, 2019)—questions regarding its impact are not settled.
Indeed, the pool of employed persons affected by Gig Economy trends is as narrow or wide as the definitions applied.
The Financial Services Market: Targeting Gig Economy Workers helps solve that riddle by providing several ways to measure Gig Economy employment, which vary in scope, including the Non-Benefit Worker, The Side Gig Worker, Second Jobbers, and Microbusiness Employees, as well as Those Working for Others vs. Those Working for Self, including Consultant/Contractors and Self-Employed Sole Proprietors.
By one analyzed measure, in a given month, U.S. adults complete more than 300 million paid assignments, underscoring not only the breadth of gig-related employment but the related opportunities to serve this shifting employment landscape. Report analysis substantiates the growth of key gig-related employment trends over time and provided related demographic insights (ranging from age and household income to occupation and marital/spousal work arrangements). The report also identifies market opportunities related to alternative financial services, tax services and related financial management tools, prepaid cards, and workforce management solutions.
Side-Gig Workers
An estimated 76 million U.S. adults are “Side Gig Workers,” defined as those who had been paid for an assortment of occasional work activities or side jobs—which Packaged Facts groups into 12 gigs across three categories. This distinguishes Side Gig Workers from the 27 million U.S. adults who claim to have a second job in addition to their main job. Packaged Facts groups side gigs thusly:
Home/Personal Care/Services
Babysitting, child care services, dog walking, or house sitting
Disabled adult or elder care services
House cleaning, house painting, yard work, or other property maintenance work
Providing other personal services, such as running errands, helping people move, etc.
Online Services
Completing paid online tasks, such as on Amazon Services, Mechanical Turk, Fiverr, Task Rabbit, or YouTube
Renting out property online, such as their car, their place of residence, etc.
Selling goods on-line through eBay, Craigslist, or other websites
Driving using a ride-sharing app such as Uber or Lyft
Other online paid activities (excluding taking the survey in which this question was asked)
Other Selling
- Selling goods or services themselves at flea markets, garage sales, or other temporary physical locations
- Selling goods at consignment shops or thrift stores
- Any other paid activities that have not been mentioned
Even beyond these traditional prospects, Packaged Facts reveals that the so-called “Gig Economy” presents a wealth of burgeoning opportunities for participants from several industry verticals—notably financial services providers, insurance providers, and human capital management providers—to meet the evolving needs of individuals engaging in gig-related employment. Opportunities in these product and service areas involve:
Alternative financial services
Tax services and related financial management tools
Prepaid cards, and
Workforce management solutions
Now on Sale “The Financial Services Market: Targeting Gig Economy Workers”
This report identifies and analyzes members of the Gig Economy, a term characterized by independent work arrangements, temporary and/or on-demand employment trends, working more than one “gig” at one time, globalization, digitization, work-at-home trends, and the gradual loss of employment benefits. The report also identifies market opportunities related to alternative financial services, tax services and related financial management tools, prepaid cards, and workforce management solutions.
View additional information about The Financial Services Market: Targeting Gig Economy Workers, including purchase options, the abstract, table of contents, and related reports at Packaged Facts’ website:
About Packaged Facts
Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services.
For more essential insights from Packaged Facts be sure to follow us on Twitter and Google+. For infographics, tables, charts and other visuals, follow Packaged Facts on Pinterest.
