Employers should provide ‘reasonable income’ and ‘strong safety nets,’ says expert
Gig work has become a structural part of the Canadian labour market and a key pillar of household finances, according to new research and employer guidance from Securian Canada.
In a two-part survey, the insurer finds that nearly one-quarter (22%) of Canadians – or approximately 7.3 million adult Canadians – are doing gig work. Younger Canadians aged 18 to 34 and racialized groups are more likely than other demographics to participate.
Securian Canada CEO Nigel Branker says follow-up polling conducted 18 months after the company’s initial 2024 research shows participation remains “pretty steady at seven million-plus Canadians participating in gig work, unchanged from 24 to 25.” He says this indicates gig work “is more structural... it's no longer a side hustle.”
More employees turned to extra jobs or side gigs to make ends meet during the past holiday break, according to one expert.
Financial necessity and cost-of-living pressures
The Securian Canada report notes that most gig work in Canada is done out of financial necessity, often in response to the rising cost of living. On average, gig work accounts for just 15% of gig workers’ total income, but it is often described as the “make-or-break financial factor” that allows workers to meet basic needs or achieve savings goals.
Branker says gig work signals “broader financial pressure in the workplace,” with workers turning to extra jobs “not for fun, not for a hobby, but to actually strengthen their financial future or save for a major life event like getting married, like a down payment for a house, like having children.”
The research also suggests gig work is closely tied to traditional employment. The report states that “nearly three-quarters of all gig workers are also employed either full-time or part-time in more traditional employment arrangements,” and that “approximately four million Canadians supplement their full-time employment with gig work.”
Although only about 18% of gig workers rely on it as their sole source of income, Branker says the share of overall earnings coming from gig work has climbed quickly. In the first survey. “People got about 15% of their total income from their gig work,” he says. “Just 18 months later, that’s up to 38%,” more than doubling the importance of gig work in household budgets.
Insurance coverage for gig workers
Securian Canada’s analysis highlights significant insurance and protection gaps within this growing segment. The report finds that one in eight of Canadian gig workers reported that they do not have any type of insurance. It adds that those who rely exclusively on gig work as their only source of income “are significantly more likely to have no insurance.”
Among gig workers who do report some coverage, nearly six in 10 (57%) rely on insurance coverage provided by someone else, "placing their financial security in the hands of others.” At the same time, many uninsured gig workers do not plan on purchasing an insurance policy in the next few years, with “perceptions of unaffordability” cited as a key barrier.
Despite these gaps, both the survey and Branker’s comments suggest gig workers are financially literate. The CEO says the data show gig workers are “actually fairly or quite financially savvy” and “have an appreciation for financial security,” which is “driving them to seek out either supplemental income or other ways of enhancing their financial security.”
Side hustles are popular among Gen Z and millennials workers in Canada, according to a previous survey. And more gig workers are now transparent with their employers about the side work, according to another study.
Best practices for employers, HR leaders
For employers and HR leaders, Securian Canada urges a broader focus on financial well-being. “We think employers should support the financial well-being of their workforce, whether or not there’s employees that participate in gig work,” Branker says.
He points to “reasonable income” and “strong safety nets, whether it’s in terms of benefits coverage, financial wellness programs, life insurance,” as priorities, in addition to competitive wages. At Securian Canada, he says, “one of the things we did this year is pursued a living wage certification, so to ensure we’re paying people at a level that they can meet their basic needs.”
Branker says stability and flexibility are also important, noting that many workers use gig work “to offset unpredictability.” He urges employers to “provide stability and predictability” and offer “broad financial security, flexible work arrangements,” while recognising that “in many ways, gig work is not going away.”
