Insights on Gig Workers

According to a recent notice from Bank of America, the majority of gig workers engaged in such jobs for only one to three months in the past year.

Key Findings

• Nearly half of gig workers earned income for just one month in the past year.
• 74% worked three months or fewer, indicating most use gig jobs to supplement spending rather than rely on them for consistent income.
• In September 2024, gig workers displayed a 23% increase in median discretionary spending compared to non-gig workers, while necessity spending was just 5% higher.
• This shows that gig work primarily enhances discretionary purchasing power (e.g., dining, travel) instead of covering daily expenses.

Growth in Gig Economy

The participation rate among Bank of America’s customers in the gig economy rose modestly from 2.8% in September 2019 to 3.8% in September 2024, though it remains small.

Sector Insights

• Ridesharing and Social Commerce: Both categories saw a year-over-year increase. The rise in social commerce is attributed to heightened demand for thrifted items, aligning with trends of consumers prioritizing experiences over goods.
• Food Delivery: Participation slightly declined, reflecting consumer sensitivity to rising delivery costs.
• Vacation Rentals: Income share from this sector remains minimal due to high real estate prices and strong international tourism.

Platform Usage

A key observation is that over 92% of gig workers earn from just one platform, a trend that has remained stable despite minor increases in multi-gig participation.

Conclusion

Bank of America concludes that the stability in gig employment is beneficial for the labor market. While not a major source of full-time employment, gig work serves as a useful channel for supplementing household income and accommodating flexible work needs.