Gig workers in Canada have credit profiles that broadly match those of the general population, but they face more difficulty when applying for credit, according to a new study from TransUnion.
The study, The Gig Economy in Canada: Rethinking Credit Risk, Inclusion, and Market Opportunity, found that 68 per cent of surveyed gig workers fall into prime and above credit risk tiers, compared with 73 per cent of the general credit-active population. Gig workers represent approximately 11 per cent of Canada’s workforce, citing Statistics Canada data.
“Gig workers are a material and growing borrower segment who may be perceived as having riskier, volatile income trends and inconsistent payment behaviours,” said Matt Fabian, senior director of research and consulting for Canada at TransUnion. “They may face significantly higher friction, such as higher interest rates, lower credit limits, and process complexity during credit applications as gig income may often be excluded from formal assessments – but our findings show that perceptions about these consumers may be misplaced.”
The gig economy refers to short-term, task-based or project-based work arrangements, often facilitated by digital platforms or apps.
Gig work supplements full-time income
Most gig workers use the income to top up earnings from traditional jobs, the study found. Sixty-three per cent of surveyed gig workers also earn a salary or hourly wage from full-time employment, and 39 per cent net between $1,000 and more than $4,000 per month after expenses from gig work.
Millennials make up the largest share of gig workers at 34 per cent, followed by Gen X at 27 per cent and Gen Z at 17 per cent, according to the study.
While 64 per cent of gig workers report meeting their payment obligations without difficulty, a higher share report payment challenges compared with the general population — 36 per cent of gig workers versus 22 per cent of the general population. TransUnion said this points to somewhat higher financial strain for certain segments and the need for more tailored credit assessment approaches.
Stronger appetite for credit
Gig workers show greater demand for credit than the broader market. Thirty-five per cent applied for new credit or refinancing in the past six months, and 36 per cent plan to do so in the next 12 months, compared with 22 per cent of all credit-active consumers with similar plans.
Participation in traditional credit products is broadly similar between gig workers and the general population, with some differences:
- Lines of credit: 31 per cent of gig workers versus 38 per cent of the general population
- Auto loans: 22 per cent of gig workers versus 23 per cent of the general population
- Mortgages: 34 per cent of gig workers versus 29 per cent of the general population
- Personal loans: 22 per cent of gig workers versus 11 per cent of the general population
The higher participation in mortgages and personal loans may reflect the role of gig income in supporting major financial commitments and managing cash flow needs amid income variability, according to TransUnion.
Application barriers persist
Nearly half of gig workers report challenges when applying for credit, with rates varying by generation:
- Gen X: 63 per cent
- Gen Z: 57 per cent
- Millennials: 47 per cent
- Baby Boomers: 38 per cent
The study identified several barriers cited by gig workers. Forty-six per cent cite complex application processes, 44 per cent cite unfavourable pricing or terms, 44 per cent say income variability raised questions or led to rejection, and 24 per cent could not provide standard documentation such as pay slips.
“While gig workers show strong demand for credit products, the study suggests that many are not served to their full potential by lenders,” said Fabian. “This is despite the fact that a large share of gig workers already hold credit products and appear to have good risk scores that tend to be broadly in line with the performance of the general population of credit-active consumers.”
Gig work becoming durable
The study suggests gig work is shifting from a temporary fix to a long-term part of household income. Seventy-one per cent of gig workers do not plan to leave this type of work in the near term, 34 per cent expect to maintain current hours, and 20 per cent plan to increase participation.
“As gig work has become an ongoing supplementary income source for many, the wider credit industry has an opportunity to rethink how these consumers are evaluated and to broaden credit inclusion by refining how non-traditional income is assessed within existing risk and process frameworks,” said Fabian. “Adapting to consumers’ evolving profiles by including alternative data, for example, could better meet the needs of more Canadian consumers while driving sustainable, long-term growth for lenders.”
The findings will be presented at TransUnion’s 2026 Canada Financial Services Summit.
About the study
The study was conducted in March 2026 among 500 gig workers in Canada. The data is derived from respondents’ self-reported information and has not been subject to independent verification. Generations are defined as Gen Z, born 1995 to 2004; Millennials, born 1980 to 1994; Gen X, born 1965 to 1979; and Baby Boomers, born 1944 to 1964. CreditVision risk score tiers used in the study are: subprime, 300 to 639; near prime, 640 to 719; prime, 720 to 759; prime plus, 760 to 799; and super prime, 800 and above. The study was released May 26, 2026.
