- A new JPMorgan Chase study found that while gig workers' hourly wages have remained stable, time of engagement in gig fields remains sporadic. The company analyzed 38 million payments directed to 2.3 million distinct Chase checking accounts out of a de-identified sample of 39 million payments.
- Results from the study revealed the majority of gig workers are in the transportation sector, providing driving services, but wages have decreased as more individuals have entered the market — half, in 2018, of what they were in 2012 for Uber and Lyft drivers. As the economy has strengthened, it’s possible these workers have found full-time or other work and are using the driving platforms to supplement their income, JPMorgan Chase said.
- For other sectors of the gig economy, like home improvement or dog-walking services, the data reveals most workers, two-thirds, are only performing these jobs for three months of the year or less.
More employers are turning to contract workers to round out head count and fill in where needed. The use of temporary contract workers saw its largest gain over a one-year period recently, according to the American Staffing Association. Employers may see recruiting competition in this market increasing as well as that for traditional positions, especially as more employers consider the benefits of contract work in a more agile market. Many employers are not fully prepared for what this means, however, with HR departments struggling to keep track of who works for the company.
Because job openings for non-gig work remain abundant according to recent statistics, former freelancers may be finding employee opportunities that better suit their needs. It’s estimated almost 40% of employees in the gig economy are using that work to add to their income, rather than as their only source of pay.
Retirees also may be using gig and contract work to supplement income or to transition out of workplaces that are struggling to replace them. As baby boomers continue to exit the workforce in droves, contracting may be a viable stopgap solution as employers work to upskill younger generations.