Community Corner
Majority Of NY Freelancers Lose Work Due To Coronavirus: Study
Four in every five New York freelancers reported losing contracts or gigs, with 50% reporting losses of more than $5,000.
NEW YORK, NY — The outbreak of coronavirus in New York is hitting freelance workers especially hard, with four out of every five freelancers reporting a lost contract or gig since the virus' spread in the state, according to a new study.
More than 80% of freelancers have lost work since New York limited work to essential employees on March 20, according to a study conducted by the Freelancers Union, which represents 57 million freelancers in the United States. Half of New York's freelancers have reported a loss of more than $5,000 in income as a result of the canceled contracts, according to the study.
The numbers for New York-based freelancers are worse than those for the country as a whole. In the United States 76% of freelancers have had work canceled and 65% are reporting difficulties in finding new work. Just 5% of freelance workers surveyed by the union said their work has not been effected by the outbreak of coronavirus.
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"Over 90% of the freelance workforce is expecting to lose income because of the COVID-19 pandemic. While Washington’s CARES Act has provided financial relief for independent workers, it’s clear that it is going to take much more to deal with the immediate and long-term impacts of this crisis. With rents and utilities due this month, we need bold measures from cities and states," said Rafael Espinal, President of the Freelancers Union and a former New York City Councilmember, said in a statement.
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The $2 trillion stimulus package recently passed by congress, which is being referred to as the CARES Act, allows for freelancers and gig workers to apply for and receive unemployment insurance due to lost income. New York Sen. Charles Schumer has estimated that New Yorkers will receive $15 billion in unemployment benefits as a result of the stimulus.
The unemployment assistance is welcomed by the Freelancers Union, but union representatives said further economic aid will be needed, especially for food and housing costs. More than 50% of freelancers responding to the union's survey said food and housing assistance program will be "critical" to their ability to live and work during the coronavirus outbreak.
In New York state, the number of people filing for unemployment in the week ending March 28 was 366,403. That's 286,404 more people out of work than the week before, Department of Labor statistics show.
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