The Government Accountability Office recently released a report charging that workers in the app-based industry had one of the highest use rates of government assistance programs. The insinuation was that app-based workers need assistance programs because they earn too little. The report has it backward. App-based work is not the source of financial uncertainty — it’s the response.
People choose to work with platforms like Uber and DoorDash to shore up their financial security. Framing it the other way around maligns an industry that has revolutionized earning by diversifying opportunity, increasing access, and creating a ready-made fallback income.
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App-based workers aren’t drawing from government welfare programs because the work pays too little. They’re turning to app-based platforms as an immediate safety net after losing a traditional job, to supplement existing income, or because the flexibility app-based work offers isn’t possible in an employee-employer relationship. The data bear this out: 63% have another job, and 80% work fewer than 20 hours a week. Workers are using app-based work as it was designed — flexibly and on their own terms.
A new report from the Pragmatic Policy Group sets the record straight. Drawing from national surveys and industry and public data, the report shows that the access to on-demand income provided by app-based platforms keeps workers in transition afloat, acting as an important new complement to the traditional social safety net.
It cushions income shocks for workers in between jobs, lets people earn extra money when they need it, and reduces fiscal stress on government programs — saving taxpayers billions of dollars in the process.
One in three people who turn to app-based work were laid off from a traditional job before or during their time on a platform, and now fully or partially replace that lost income through platform work. These workers are using flexible work as a bridge back to financial stability after the job market let them down.
What happens next is even more telling. Among workers who lost a job and turned to an app to make ends meet, nearly half relied on it as their primary income — compared to just 1 in 10 who relied primarily on government benefits. Half of households that have reduced or stopped receiving benefits say app-based work is the reason. That’s exactly what a strong safety net is supposed to do — give people a fast, scalable way to recover their footing and stay connected to the labor market while they look for permanent work.
That’s also great news for taxpayers. The PPG report estimates app-based work will save roughly $8.3 billion for taxpayers over the next decade by reducing reliance on programs including unemployment insurance, supplemental security income, TANF, SNAP, WIC, and the earned income tax credit. More than 1.4 million workers already rely less on government benefits because app-based work is available to them. Texas leads all states in total savings at $1.2 billion, followed by California, New York, New Jersey, Massachusetts, and Pennsylvania, proving that this effect holds across states with very different economies and benefit structures.
None of this is possible without the flexibility that sets app-based work apart from a traditional job — the ability to start earning almost immediately, without waiting on a hiring process. That flexibility gives people managing family care, a disability, or a health condition a way to keep working on their own terms, rather than leaving the workforce entirely because they can’t work around a rigid schedule.
We aren’t arguing that traditional social programs should be cut or eliminated. Rather, we want to highlight the critical role of app-based platforms in helping families need less government assistance in the first place. The data is clear that access to app-based work lowers benefit use by allowing workers to quickly replace lost income and smooth earnings between jobs. During times of economic uncertainty, these earnings are a vital option. Two-thirds of respondents say their ability to pay down debt has improved because of app-based work, and 72% say they feel more financially secure as a result. As one survey respondent put it, app-based work gave them a reliable way to earn extra income when government assistance fell short — covering groceries and bills, and at times replacing the need for benefits altogether.
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Beyond the dollars and cents, 61% of respondents said they prefer earning their own income even when benefits are available, citing pride, independence, and the example they want to set for their families.
Policymakers weighing new restrictions on independent work — including reclassification mandates — should look closely at these numbers before acting. App-based work isn’t competing with the social safety net; it’s strengthening it, one worker and one household budget at a time. Preserving the flexibility that makes this possible should be a shared priority, not a partisan one.
Kristin Sharp is the CEO of Flex, the voice of the app-based industry, and a longtime advocate of entrepreneurship and workforce innovation.
