3 important things to consider when employed in the gig economy

Build up a substantial safety net, give yourself benefits, reduce non-deductible debt.

Ruth Saldanha 26 September, 2018 | 5:00PM
Facebook Twitter LinkedIn

Working in the gig economy -- a labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs -- comes with certain freedoms. You're not tied to a desk from nine to five, you have the flexibility to pick the work you want to do, and you have the freedom to work with whomever you want.

Gig work is so attractive that Canada's labour market is shifting from permanent employment to gig work as "the new normal," says a BMO Wealth Management report. According to Statistics Canada, temporary employment accounted for nearly 20% of employment gains from 2016-2017 to 2017-2018, and growth in temporary work has outpaced permanent employment since 1998-1999.

However, gig work also comes with a unique set of challenges. Key among these is variability of cash flows, uncertainty of income and a lack of employer benefits. To meet these challenges, gig employees need to plan differently to financially insulate against these risks.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

About Author

Ruth Saldanha

Ruth Saldanha  is Senior Editor at Morningstar.ca. Follow her on Twitter @KarishmaRuth.


© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy