BMO Wealth Management today released a report describing Canada's labour market shifting from permanent employment to on-demand temporary or contractual employment as "the new normal".
The report, 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.
Technology and automation
"Since the global financial crisis in 2008, technology and automation have transformed just about everything we do," said Joanna Rotenberg, Group Head, BMO Wealth Management. "The new job economy has also changed the way Canadians save and invest. A change in the way Canadians hire or get hired means additional time and planning is needed for gig economy workers to achieve their financial goals."
Some of the challenges of working in the gig economy mentioned by those surveyed include: having no benefits, such as medical, dental or disability (69%); not getting paid when sick (55%); not earning enough (41%).
BMO offered several tips for self-employed workers, including the importance of having a financial plan and a business plan. The bank also underlined the need for health and medical insurance coverage, as well as private disability insurance.
To learn more, consult the full report.