New Study Links App-Based Work to Lower Reliance on Public Assistance

The analysis, commissioned by the Flex Association, directly challenges findings released in July by the Government Accountability Office. While the GAO suggested that high usage of government benefits among gig workers indicates economic instability, the new report argues the opposite: workers utilize these platforms as a proactive tool to maintain financial independence. According to the research, one-third of individuals currently using app-based platforms turned to them following a layoff from traditional full or part-time employment.

Nearly half of those displaced workers report relying on gig earnings rather than government assistance while searching for new positions. Kristin Sharp, CEO of the Flex Association, described this dynamic as a lifeline that allows individuals to bridge income gaps rapidly. By serving as an alternative to unemployment insurance and SNAP programs, the report claims the sector will generate between $10.5 billion and $15.1 billion in fiscal savings by 2036.