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More baby boomers turning to the gig economy, but don't necessarily like it

It’s not just millennials who are embracing the gig economy - baby boomers are too, but they don’t necessarily like it.
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It’s not just millennials who are embracing the gig economy - baby boomers are too, but they don’t necessarily like it.

BMO Wealth Management released a report Monday that said more and more baby boomers are turning to contract work because they feel “joining the gig economy is their only way of making a living.”

The report describes Canada’s labour market shifting from permanent employment to on-demand temporary or contractual employment as “the new normal” – and the challenges and opportunities within this so-called “gig economy.”

The Gig Economy: Achieving Financial Wellness with Confidence is based on a survey of more than 1,000 Canadian small-business owners. They revealed 40 per cent had or currently worked as self-employed professionals pursuing contract or freelance project-based careers.

However, most reported that while contract work offers a certain level of autonomy, it comes with serious worries, such as 87 fearing life without any medical, dental or disability benefits. The report found 57% are concerned about no paid sick days and 57% feel they are not earning enough.

Other results include:

  • Most small business owners became self-employed by choice (60%).
  • Of all the respondents, 40% identified as being part of gig economy now or in the past.
  • Popular reasons for taking contract work: to have autonomy and control (49%); make extra money on the side (49%); balance career and family needs (42%); or because it was the only way to make an income (27%).
  • More Boomers were likely to value autonomy and control when taking freelance jobs (70%) or felt it was the only option at this stage to earn income (35%).
  • Generation Xers valued balancing career and family needs more than other groups (52%).
  • Millennials were more inclined to work in the gig economy to make extra money on the side (53%), or until they found a better job (30%).