According to the Wage to Wallet Index by PYMNTS Intelligence and WorkWhile, 26.6% of labor economy workers lost income due to illness or injury in the last 12 months, compared to 15.9% of other workers. Most losses were under $1,000, yet they disproportionately impacted household budgets.
Presenteeism is driven by financial necessity, with 30.3% of labor economy workers citing the need to avoid lost pay as their primary reason for working while sick. This group has fewer financial buffers, as only 37.2% could cover a sudden $1,200 expense, versus 56.9% of non-labor economy workers.
The study highlights significant gaps in employer-provided benefits. Only 73.9% of labor economy workers have health insurance, compared to 86.6% of their counterparts. Additionally, 24.6% of the labor economy group lack retirement accounts, and they report lower access to paid time off and retirement plans.
When facing income instability, 43% of labor economy households reduce nonessential spending, while 35.5% of other workers do the same. These households are also less likely to contribute to savings and more likely to seek additional gig work to compensate for lost earnings during disruptions.
The report suggests that financial resilience for these workers could be improved through tools like emergency savings, cash flow alerts, and flexible billing. The economic value of benefits is defined by their ability to delay the impact of a missed shift on a household's purchasing power.
