. As the independent labor market continues to reshape traditional employment structures, Utah faces unique opportunities and challenges.
Utah’s independent workforce of gig workers has undergone significant expansion in recent years, propelled by technological advancements, evolving workforce preferences and the demand for flexible work arrangements. This thriving sector presents a wide range of opportunities in ridesharing, food delivery, freelance work and other on-demand services.
With its vibrant startup culture and supportive business ecosystem, Utah has emerged as an optimal environment for gig economy platforms and independent workers. Currently, there are approximately 80,000 gig workers in Utah, constituting roughly 5 percent of the state’s workforce.
Everee, a leading payroll technology company known for disrupting the traditional two-week pay cycle (so employees are paid faster), has collaborated with the Restaurant Marketing & Delivery Association (RMDA) to conduct an extensive survey involving 315 gig drivers based in the United States. The comprehensive report delves into the present-day conditions of gig drivers, featuring valuable insights and perspectives from influential leaders within the gig and delivery sectors.
Ron Ross, co-founder, president and COO of Everee, emphasized the purpose behind their research, stating, “We wanted to do research on this workforce in order to help our customers better understand the financial well-being of their drivers as well as what it takes to hire and retain people today when competition for these workers is so tough.”
For Utah, the gig economy has created abundant employment opportunities and fueled economic growth. The survey revealed that 64 percent of gig drivers rely on gig work as their primary source of income.The task-driven economy offers several advantages for workers. The flexibility of gig work allows Utahns to choose their hours, pursue entrepreneurial ventures and balance work and personal commitments. Of those surveyed, more than half of the drivers work fewer than 20 hours per week, taking advantage of the task-oriented marketplace’s versatility.
The survey findings revealed other intriguing statistics: 88 percent of drivers experience heightened job satisfaction compared to a year ago, and 68 percent of workers prefer to maintain their status as 1099 contractors, valuing the independence and freedom of gig work.
While the flexible-work market presents promising opportunities, it has its challenges. Inadequate earnings, unpredictable income, exclusion from unemployment statistics, lack of minimum wage protections, absence of health care and retirement benefits and limited access to worker’s compensation are just a few reasons why 42 percent of drivers may leave gig work within the following year.
According to Ross, “Many gig workers face unpredictable earnings, which can make it difficult to pay their bills or meet their financial goals. This constant uncertainty about how much they’ll earn from one gig to another can really take a toll on their overall job satisfaction.”
Addressing these barriers and adapting policies to ensure fair compensation, benefits and worker protections are critical for nurturing a thriving gig economy in Utah.
The Everee survey found employers can enhance retention and attract additional workers by streamlining onboarding processes. Additionally, providing instant payments to gig workers can alleviate cash flow problems and demonstrate concern for their financial well-being.
Utah businesses are harnessing the power of the gig economy to streamline operations, reduce costs and access a flexible workforce. Gig platforms provide businesses with on-demand access to a talented pool of individuals, enabling them to scale up or down quickly based on demand. This agility and cost-effectiveness have allowed companies to remain competitive and adapt to rapidly changing market conditions.
“Utah has a handful of home-grown gig companies like Bacon, Dree and Errand, which are offering meaningful work opportunities to Utahns and beyond,” Ross explains. “I’m excited to see what other gig companies are born out of our strong culture of entrepreneurship.”