TransUnion study flags a disconnect between gig worker risk and lender perception
Nearly half of Canada's gig workers report being turned away or penalised when applying for credit despite credit profiles that largely mirror the broader population.
A new TransUnion study, The Gig Economy in Canada: Rethinking Credit Risk, Inclusion, and Market Opportunity, found that 68 percent fall into prime and above credit risk tiers, compared with 73 percent of the general credit-active population.
Yet nearly half reported difficulty accessing credit, with barriers driven more by process gaps than actual risk: 46 percent cited complex application processes, 44 percent said income variability prompted questions or led to rejection, and 24 percent could not provide standard documentation such as pay slips.
Matt Fabian, senior director of research and consulting for Canada at TransUnion, said gig workers are a growing borrower segment often perceived as having volatile income and inconsistent payment behaviours, but that the findings show "perceptions about these consumers may be misplaced."
Gig workers make up roughly 11 percent of Canada's workforce, according to Statistics Canada, and most do not rely solely on platform income.
The study found that 63 percent also hold full-time salaried or hourly employment, and 39 percent net between $1,000 and more than $4,000 per month after expenses from gig activities.
Millennials make up the largest share at 34 percent, followed by Gen X at 27 percent and Gen Z at 17 percent.
The segment is also growing more permanent.
Seventy-one percent of respondents said they did not plan to leave gig work in the near term, with 34 percent expecting to maintain current hours and 20 percent planning to increase participation.
The findings suggest gig income is becoming a durable component of household financial planning rather than a temporary arrangement.
Demand for credit among gig workers is strong: 35 percent had applied for new credit or refinancing in the past six months and 36 percent planned to do so in the next 12 months, well above the 22 percent of all credit-active consumers with similar plans.
Gig workers also showed higher mortgage participation (34 percent versus 29 percent for the general population) and personal loan uptake (22 percent versus 11 percent).
Fabian said the credit industry has an opportunity to broaden inclusion by refining how non-traditional income is assessed.
Adapting to evolving consumer profiles by including alternative data, he added, could better serve Canadians "while driving sustainable, long-term growth for lenders."
