Most gig workers only worked a single gig for 1-3 months over the past year: BofA By Investing.com

Investing.com — Nearly all of gig staff labored for just one to a few months up to now 12 months, in line with Financial institution of America’s current notice.

The report, based mostly on inside deposit account information, finds that just about half of gig staff earned revenue from these platforms for only one month over the past 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 moderately than as a constant revenue supply.

Financial institution of America’s aggregated spending information additional illustrates this development. In September 2024, gig staff exhibited a 23% increased median discretionary spending than non-gig staff, whereas their necessity spending—protecting hire, groceries, and different necessities—was solely 5% increased.

This discrepancy highlights that many gig staff use these roles to complement their discretionary buying energy, reminiscent of eating out, journey, and electronics, moderately than counting on gig revenue for day-to-day bills.

The gig financial system’s participation fee amongst Financial institution of America’s deposit prospects has grown modestly, rising to three.8% in September 2024 from 2.8% in September 2019. Nevertheless, its total scale stays small and steady.

Throughout the gig classes, ridesharing and social commerce noticed a year-over-year uptick.

For social commerce, the annual enhance “might be due partly to elevated client demand for thrifted objects purchased through social commerce websites, which mirrors the broader development of customers buying and selling down on items as a way to spend on experiences,” the report states.

In the meantime, meals supply participation has barely declined, presumably reflecting client sensitivity to the rising prices related to supply companies.

The share of revenue from trip leases has been persistently minimal, “doubtless as rising actual property costs stay a excessive barrier of entry and worldwide tourism stays sturdy,” BofA notes.

One other key discovering is that gig staff overwhelmingly follow a single gig platform. Over 92% of gig staff earned revenue from only one platform in September 2024, a quantity that has remained steady regardless of minor will increase within the share of staff taking part in two or extra gigs.

“Total, the steadiness in gig employment is probably going an excellent factor for the labor market,” BofA concludes.

“Though it’s not prone to be a serious driver of full-time employment, it may be particularly useful for these trying to complement their family’s spending or for individuals who want versatile work preparations.”