At times, the gig economy can be an unstable source of income, and COVID-19 has increased financial uncertainty for workers. With grief, isolation, loss of income, and suspense, mental health conditions are now higher than ever. What is exactly happening to gig workers who are working and living off an uncertain economy?
Gig workers cannot always depend on a stable income. Governments cannot always offer them labor protection schemes provided to hired employees. However, over the past years, the gig economy has gained space; the general financial uncertainty makes us wonder about workers’ psychological stability and health.
What is happening to the independent delivery drivers, writers, tutors, and sellers in the challenging COVID-19 era? What have been the consequences to their mental health and well-being?
Stress and anxiety prevails
The months-long income reduction is creating a stressful environment amongst gig workers. Surveys across the world have shown that uncertainty has overwhelmed them. Gig workers, who were part of a study by the “Journal of Urban Health” in France, reported an average of 28% decrease in income. Of those interviewed, 67% experienced a drop in earnings, 3% an increase, while the rest reported no income change. For those who reported a loss, this number was as high as 44%.
The lack of control over their working hours has caused anxiety. Reduced income, coupled with the uncertainty of securing their next job, can be an unbearable cause of stress. Aon’s 2020 Gig Economy Report found that 54% of workers in the gig economy were anxious about their financial future.
A study by the University of Oxford found that people hired in developing countries through platforms like Freelancer by those in the US and UK have little knowledge about local employment regulations and their application. However, that fact, combined with the COVID-19 financial pressure, creates an extra concern for the gig workers who are already struggling.
Moreover, delivery drivers, cleaners, etc., continue to chase their income and to work outside, even if the situation is risky for their health. Thus, their stress and fear don’t stop at income loss: their general health condition and safety are at risk.
The pandemic has exposed weaknesses in the gig economy. The result heightened anxiety that further impacts independent workers’ health and productivity.
A French survey from “the Journal of Urban Health” has shown that half of the French gig workers lost their jobs, 29% worked from home, and 19% were still working outside their home. Drivers were more likely to continue working outside. The luckiest workers could complete their jobs from their homes, such as graphic designers and writers. One of the most impacted categories were drivers. During the March 2020 lockdown, people were discouraged from going outside, so Uber drivers lost the most significant part of their income.
While salaried employees had minimum loss due to the government’s support schemes, gig workers fell in the safety net gaps. Most of them lost all their financial stability. They ended up living with constant anxiety about whether they would be able to cope with their obligations.
A bright light amidst a stressful situation
Many services have been helping employees to manage their stress. Uber introduced policies to compensate drivers and delivery workers worldwide diagnosed with or under quarantine due to Covid-19 for up to 14 days. M4JAM, a South African micro-jobbing, and micro-learning platform, launched the R2m project in partnership with mobile operator Cell C to allow gig workers to earn small sums of money for completing skill-based training modules. There are plenty of free organizations that are here, waiting to support people in need. The International Labor Organization, The Fairwork Foundation, and others have attempted to highlight the plight of gig workers affected by the pandemic.
Furthermore, many governments have been providing one-time financial aid to workers. Actions have started to be put into place to cover workers who have fallen on the regulations’ grey area. The United States government, via the CARES act, passed laws to temporarily extend unemployment insurance to gig workers, freelance workers, independent contractors, the self-employed, and others who would otherwise not be eligible for these benefits. Micro-entrepreneurs in France were entitled to a single payment of €1500 from the French government.
There are various proposals in the foreground, ranging from underemployment insurance to universal basic income. These proposals focus on minimizing the risks of gig workers and providing them with the stability and certainty they need, especially during a pandemic. YOSS, a platform that connects highly-demand knowledge workers with enterprises, intends to give options for the purchase of unemployment or underemployment insurance, life insurance, and a private pension facility to its freelancers in the near future. The Canadian government provided citizens who couldn’t work during the pandemic with a weekly benefit of $500 for up to 24 weeks.
