LGGNF - Part 7 of Legal & General’s U.S. Gig Economy Study measures Covid’s impact on independent workers’ earnings amid emerging work models
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- 43% of gigworkers reported earnings declined due to the pandemic; half of thesewere already in the lowest income segment
- Impact on earningsdiffered widely by geography, with Texas and Colorado showing biggestdecreases
- 1/3 of gig workers said that the pandemic and current economicheadwinds had little impact on earnings while 27% said their incomeincreased
Theseventh segment of a broad new study sponsored by Legal & GeneralGroup ( LGEN , LGNNY ), Covid’simpact on gig worker earnings shapes evolving work models was released today. With the recently signed debt limit bill clawingback almost $30 billion of unspent Covid funding debt and againsta backdrop of projections suggesting that economic headwinds could cause 3.2 million layoffs inthe U.S., this report examines the resilience of independent workersduring the pandemic, and their capacity to emerge stronger duringeconomic disruptions such as Covid or periods of recession.
This seventh part in the data-richstudy found that under a third (27 percent) benefited while over athird (43 percent) reported that their income declined; the remainingthird did not think they either gained or lost economic tractionduring the two-and-a half-year period. These numbers skewedsignificantly when put through a filter of high or low wage earners,with many more independent workers in the highest earnings segment (42percent for those earning more than $200K annually) reporting earningsincreases. Few gig workers—only 1 in 10—said that the pandemic wasa catalyst for them to join the gig economy or had accelerated such amove.
The study measured suchspecifics as:
- How women freelancers fared and how their chosen fields helped informthis
- How gigworking parents (both male and female) were impacted, versusnon-parents
- Breakdown of increases vs. decreases by generation (millennials &Gen Z, Gen X, and Boomers)
- Differing impacts on earnings across the 12 mostpopulous U.S. states
- Expectations of income changes during the next 12months
“It’s clear thatwe need to think of the gig economy as a long-term shift in theAmerican work dynamic. A sizeable percentage of this large swath ofthe U.S. workforce was negatively impacted during thepandemic—notably women and lower-earning gig workers—though thedata suggests many may have fared better than traditional employees.We’re able to pinpoint where inequities lie, and this researchprovides a good sense of where support is needed going forward. Italso helps us understand how this segment of the workforce might fareduring future economic disruptions, and therefore what provisionsmight be needed to help independent workers plan for their financial,health and retirement futures.”
John Godfrey, Director of Levelling-Up,Legal & General Group
Pros andcons of pandemic isolation vs. work-from-home
Legal & General’sstudy also looks at the multifaceted societal factors leading to theimpacts of Covid-19 on gig workers, including the isolation manyreported feeling. Despite inequities and income loss, overall, thepandemic may have represented more continuity than departure for theGig Economy: 13 percent selected “having a pandemic-ready work lifealready in place before March 2020” as one of the best things aboutgig work.
“Ourresearch confirms several inferred conclusions about the pandemic,while raising questions about other effects. U.S. gig workers wereprobably better prepared for the massive work shift out of the officethan their salaried peers, as well as their earning power compared tosalaried workers. However, the isolation many reported experiencing,while strongly felt across the entire workforce, points tofreelancers’ lack of confidence that they’re ‘in the game’ andcan safely move into a secure financial future.”
John Godfrey,Director of Levelling-Up, Legal & General Group
The final segment ofthis research will summarize the steps employers would likely need totake to get gig workers back into the traditional workplace—or totry it out for the first time. To receive a pdf of any of thesereports, please email Meir Kahtan/MKPR at mkahtan@rcn.com.
Notes to Editors
The information contained in this pressrelease is intended solely for journalists and should not be reliedupon by private investors or any other persons to make financialdecisions.
About theStudy
Legal & General undertook proprietary research into the attitudes and changes U.S. gigworkers are experiencing in relation to their work situations andfinancial outlook. The U.S. Gig Economy research was compiledusing original survey data from 1044 U.S.-based workers aged 18 to 60who are neither students nor retired, and who earn at least 60% oftheir income from gig work. The data was collected via online surveyfielded to individuals sample sourced from YouGov’s US panel. TheLegal & General-designed survey was scripted and hosted onGryphon, YouGov’s proprietary survey scripting platform, and thefield work took place between August 19 and 31, 2022. Keydemographics such as age, gender and region were allowed to fall outnaturally. 20 questions were designed to understand facts aboutearnings, drivers of and barriers to gig working, financial productownership & financial capacity when coming across adversesituations, and future expectations of being involved in the gigeconomy. Verbatim comments were captured by Legal & General inresearch carried out in June 2022.
About Legal & GeneralGroup
Established in 1836, Legal & General is one ofthe UK's leading financial services groups and a major globalinvestor, with over £1.2 trillion ($1.4 trillion) in total assetsunder management* of which a third is international. We also providepowerful asset origination capabilities. Together, these underpin ourleading retirement and protection solutions: we are a leadinginternational player in pension risk transfer, in UK and US lifeinsurance, and in UK workplace pensions and retirement income. Throughinclusive capitalism, we aim to build a better society by investing inlong-term assets that benefit everyone.
*as of December 31,2021
The information contained in this press release is intendedsolely for journalists and should not be relied upon by privateinvestors or any other persons to make financialdecisions.
Contact Details
Meir Kahtan
+1917-864-0800
CompanyWebsite
https://www.legalandgeneralgroup.com/
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