The 9-5 is over.

Every time I check out the business section of the paper (or Google News, as I tend to use these days), there seems to be a story on the ‘gig economy’. Apparently everyone’s being made casual, and there’s no such thing as an old-school 9-5 Monday to Friday job anymore. People are hopping from job to job as contractors, even if the nature of their work isn’t necessarily something you’d expect to be done on a contract basis.

At Money101, we’re in a bit of a different position because of the specific niche we’re in. My husband’s business is another thing altogether – being in hospitality, non-9-5 schedules and casual positions have always been the way. So I decided to have a look behind the headlines, at the statistics. 

What’s actually happening?

We can take a few clues from official stats on what’s actually happening. ABS data shows us that:

1. 32% of all employed people work part time. That’s up from 15% in 1978, when records began.
2. Underemployment is more common than you might think. Nearly 10% of people who have jobs want more hours. This issue generally affects more women than men.
3. Just over 25% of employed workers don’t have paid leave entitlements. This number has crept up from 24% in the three years on record. 
4. Over a million working Australians are independent contractors. That’s roughly 10% of the working population. Of these:

• Roughly 40% have dependants
• Nearly half have only one active contract at a time
• Most do not have authority over their own work

What do casuals and contractors need?

At Money101 we’re very results oriented when it comes to designing financial education. For the sake of our clients and our end users, we really want the message to sink in. The information has to be synthesised for the education to be effective. So naturally when I read these kinds of headlines, the first thought is “what do these casualised workers need?” It’s about working backwards and thinking about the kinds of problems, challenges and personal questions they’re facing at the moment they get made casual, put on part time, or even made redundant.

Some of the financial wellbeing problems seem pretty obvious. Moving from permanent full time to part time or casual generally means less income. Sometimes, it can mean income is different from week to week, making budgeting more difficult than in the past. But being a casual or a contractor can also present longer-term challenges. For example, unless you can demonstrate a strong track record of bringing in business as an independent contractor, it can be harder to apply for credit products – including home loans.

Money101’s role in this labour market trend is pretty clear. We’ve got to partner with employers and financial services providers to reach people before, during and through their journey through a changing employment status.

To see one of the ways we’re addressing this issue, check out our latest unit here. Need something a bit different to support your group’s financial wellbeing? Get in touch with us today to start the conversation on bespoke financial education.