Delivery driver.
The U.S. labor market is in the midst of a quiet revolution. Fueled by the rise of gig platforms, remote contract work, and the growing desire for flexibility, millions of Americans are embracing nontraditional jobs—as freelancers, independent contractors, rideshare drivers, side hustlers, and more. According to a recent report from the Financial Health Network, 11.4% of all employed adults in the U.S.—about 19 million people—now rely on nontraditional work as a primary or supplemental income source.
While this shift promises freedom and control over one’s time, it also comes with hidden costs—especially for workers’ financial health. The report finds that nontraditional workers are more likely to experience income volatility, lack access to critical employer-sponsored benefits like insurance, and struggle with both short-term stability and long-term financial planning.
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These challenges aren’t just personal burdens; they are structural blind spots in how we design workplace protections and employer-sponsored benefits—the result of institutional roadblocks rather than individual decision-making. As the workforce continues to diversify, employers have both an opportunity and a responsibility to rethink how benefits are delivered and who they are designed to serve. The central question is no longer theoretical: Are we building systems that support only traditional, full-time employees—or a workforce that reflects today’s reality?
Flexibility without a safety net
This new research reveals stark disparities in financial health between nontraditional and traditional workers—especially for those whose main job is outside the bounds of conventional employment. Compared to their traditionally employed peers, primary nontraditional workers (those who rely on nontraditional work for their primary livelihood):
- Less often report having enough savings to cover at least three months of living expenses (43% vs. 57%).
- Are nearly twice as likely to report income volatility, with 40% experiencing fluctuating earnings from month to month (40% vs. 24%).
- Less often report carrying certain types of insurance, such as health insurance (78% vs. 91%) and life insurance (37% vs. 66%).
- More often report poor credit scores, with just 58% rating their credit score as “good” or better (58% vs. 76%).
These gaps persist even after accounting for household income, education, race, age, and disability status.
For many workers, the tradeoff for independence is unpredictability: an inability to plan, save, or recover from financial shocks. Without a safety net—public or private—nontraditional workers may gain flexibility, but often at the cost of long-term financial resilience.
A tale of two worker profiles — and what employers need to know
Nontraditional workers aren’t a monolith, and understanding the distinctions between them is essential for effective workforce planning. Primary nontraditional workers rely on gig or contract work as their main source of income, while secondary nontraditional workers take on this work to supplement a traditional job.
While secondary nontraditional workers typically have higher incomes than primary nontraditional workers and some access to employer-sponsored benefits, they still face meaningful financial stress—particularly related to debt and long-term planning. Nearly four in ten (41%) report unmanageable debt, and only a third (34%) feel confident they’re on track to meet their long-term financial goals.
Perhaps most telling: Secondary nontraditional workers report “just getting by - covering basic expenses” as one of their “top three” most important financial goals. That signals a critical insight for employers: even workers who appear financially stable on paper may be relying on supplemental work to offset gaps in wages, benefits, or protections. Many also report recent financial shocks—like unexpected medical expenses or unexpected major repairs to their house, appliance or car—that may push them into side gigs out of necessity, not choice.
For employers, this has workforce-wide implications: nontraditional work may be acting more as a financial boost than a protective safety net, offering limited protection against financial risk. That pressure can directly affect employee productivity, retention, and overall wellbeing.
Rethinking support: What needs to change
As the workforce increasingly relies on nontraditional work arrangements, employers face a clear opportunity—and responsibility—to rethink how benefits and protections are designed. Traditional models that tie benefits solely to a single full-time job no longer fit the reality for millions of workers today.
To stay competitive and support their people effectively, employers should consider shifting from job-based benefits to more flexible, worker-centric support systems that follow individuals across roles and employment types. This could include:
- Portable benefits platforms that allow workers to accrue retirement savings, health coverage, and paid leave regardless of how or where they work
- Income-smoothing and automated savings tools tailored to volatile earnings, like those offered by Oportun or One@Work.
- Flexible, pay-as-you-go insurance products designed for workers who don’t get employer coverage.
- Financial coaching and debt support, especially for those juggling multiple income streams to meet basic needs.
Some models already exist. Programs like Robinhood’s Retirement for Independent Workers and GigEasy offer promising examples. But these efforts are still niche—and often not scaled yet or integrated into mainstream financial services or employer practices.
From marginal to mainstream
For years, nontraditional workers were treated as a fringe segment of the labor force. That’s no longer true. With millions relying on gig and freelance work, supporting their financial health is not just a social imperative—it’s a workforce necessity.
Employers that rely on contingent labor, HR teams designing benefits packages, fintech companies building financial tools, and policymakers crafting social insurance and other public programs all have a role to play. Recognizing the diversity within nontraditional work—and designing for it—must become the new standard.
The future of work isn’t on the horizon. It’s already here. And we have a choice: either retrofit yesterday’s systems to today’s reality—or reimagine a future where all workers, regardless of how they’re employed, can thrive.
Riya Patil is a Senior Associate on the Workplace Solutions team at the Financial Health Network, where she helps employers design benefits that support worker financial health. Wanjira Chege is an Associate on the research team, supporting data-driven research, policy, and consulting projects for the Financial Health Network.
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Riya Patil
Riya Patil is a Senior Associate on the Workplace Solutions team at the Financial Health Network, where she helps employers design benefits that support worker financial health. Wanjira Chege is an Associate on the research team, supporting data-driven research, policy, and consulting projects for the Financial Health Network.
