Investing.com — Nearly all of gig staff labored for just one to a few months previously 12 months, in line with Financial institution of America’s latest observe.
The report, based mostly on inner deposit account knowledge, finds that almost half of gig staff earned earnings from these platforms for only one month during the last 12 months, whereas 74% labored three months or fewer.
Regardless of the flexibleness and accessibility of gig jobs, these findings recommend that almost all people flip to gig work to complement spending somewhat than as a constant earnings supply.
Financial institution of America’s aggregated spending knowledge additional illustrates this pattern. In September 2024, gig staff exhibited a 23% greater median discretionary spending than non-gig staff, whereas their necessity spending—overlaying lease, groceries, and different necessities—was solely 5% greater.
This discrepancy highlights that many gig staff use these roles to complement their discretionary buying energy, akin to eating out, journey, and electronics, somewhat than counting on gig earnings for day-to-day bills.
The gig economic system’s participation price amongst Financial institution of America’s deposit clients has grown modestly, rising to three.8% in September 2024 from 2.8% in September 2019. Nonetheless, its total scale stays small and secure.
Inside the gig classes, ridesharing and social commerce noticed a year-over-year uptick.
For social commerce, the annual improve “could be due in part to increased consumer demand for thrifted items bought via social commerce sites, which mirrors the broader trend of consumers trading down on goods in order to spend on experiences,” the report states.
In the meantime, meals supply participation has barely declined, probably reflecting shopper sensitivity to the rising prices related to supply providers.
The share of earnings from trip leases has been persistently minimal, “likely as rising real estate prices remain a high barrier of entry and international tourism remains strong,” BofA notes.
One other key discovering is that gig staff overwhelmingly stick with a single gig platform. Over 92% of gig staff earned earnings from only one platform in September 2024, a quantity that has remained secure regardless of minor will increase within the share of staff taking part in two or extra gigs.
“Overall, the stability in gig employment is likely a good thing for the labor market,” BofA concludes.
“Although it’s not likely to be a major driver of full-time employment, it can be especially helpful for those looking to supplement their household’s spending or for people who need flexible work arrangements.”
