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Gig Economy Surges as Layoffs Mount
18 Nov
Summary
- Gig work absorbs strain as traditional job growth cools.
- 153,000+ job cuts announced in October, worst since 2003.
- Gig workers earn 50-65% of previous traditional wages.
The American labor market is showing signs of cooling, with the gig economy emerging as a crucial support system. A recent analysis revealed that platform-based gig work is holding steady as traditional payroll growth declines. Approximately 20% of individuals experiencing job loss or reduced hours have turned to gig platforms to supplement their income.
This shift coincides with a significant increase in layoffs across various sectors. October alone saw over 153,000 job cut announcements, marking the worst reading for that month since 2003. Data also indicates a contraction in private sector employment. These pressures underscore why the gig economy is acting as a backstop for many workers.
Official data may not fully capture the extent of gig work, with estimates suggesting many counted as unemployed are actively engaged in it. These roles, often characterized by lower pay, fewer benefits, and less stability, contribute to a sense of economic insecurity for many Americans, even as they technically remain employed.
