A survey by Nearside, a new banking platform, has found workers shifting toward self-employment and the gig economy in the post-pandemic era.
According to the study, 28% of workers are moderately involved in self-employment, while for 14%, self-employment is the primary source of income.
“Self-employed workers have faced extraordinary challenges over the past two years as the Covid-19 pandemic introduced lockdowns and restrictions across the US, and our company aims to better understand how we can support them in succeeding,” said Nearside CEO Thomson Nguyen.
“Many were laid off from their jobs and turned to self-employment as a plan B, while many established business owners closed storefronts, paused services, or shifted their businesses online,” Nguyen added.
The report found that 37% of workers lost their previous job due to the pandemic, and 63% are now self-employed as a result.
The pandemic also led to a substantial drop in both volumes of work and income. In terms of working from home, about half of the respondents cited that it had a positive impact on their work-life balance, while only 19% said it had a negative outcome.
“The findings in our report reveal some very specific challenges that self-employed workers have faced during the pandemic, which we are factoring into our product plans,” said Tim Wu, Nearside’s head of growth. “The encouraging news is that well-being has increased, and the shift to remote work is likely a factor.”
Nearside’s report includes data collected from over 1,000 self-employed workers, including small-business owners, freelancers and gig workers, to examine the fluctuations in both career and well-being among the self-employed workforce since March 2020.