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share of gig worker The U.S. reached its highest level on record in March, according to a new analysis from the Bank of America Research Institute.
According to the report, the percentage of customers american bankthe country’s second-largest bank, which earned revenue from gig platforms through direct deposit or debit cards, rose to more than 3.8% in March 2024, surpassing the previous peak reached in early 2022.
As a result, ridesharing drove most of the gig work growth last year and became the most common form of gig work among Bank of America customers, while social commerce and delivery grew in December 2021. It turns out that the growth rate has slowed down from its peak.
“Ridesharing is a major contributor to the rise in gig work, in part because traffic volumes are almost back to pre-pandemic levels and the preference for ridesharing compared to public transportation. That’s a possibility,” said Bank of Banks economist Joe Wadford. The American Institute told FOX Business. “From another perspective, gig work is on the rise because people are returning to pre-pandemic activity levels but exhibiting slightly new behaviors (e.g. traveling in less crowded places) due to the pandemic. Because there is a possibility that
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The percentage of Bank of America clients who earn money from gig work hit a record high in March, according to a report from the Bank of America Research Institute. (Photo by Spencer Pratt/Getty Images/Getty Images)
Ridesharing has become the second-largest source of gig work income after vacation rentals, but Wadford said ridesharing has a high barrier to entry for workers given the costs involved. own a house Or compare the cost of owning a car with properties available for short-term rentals.
Vacation rentals remain the least common source of income for gig work, and the barriers to entry for some parts of gig work are reflected in their relatively high uptake by members of the baby boomer and traditionalist generations. According to the report, these rates have gradually declined among younger generations, with Gen X slightly higher than Millennials, and Millennials slightly higher than Gen Z.
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According to the report, younger generations of workers are more likely to pursue ridesharing as a gig work opportunity. (Getty Images/Getty Images)
“One notable trend in gig work is the resurgence in age-related proportions of Gen Z and Gen Z. Millennial gig workers “Over the past year, the proportion of Gen Xers earning income from gig work has reached a new peak in early 2024,” Wadford added.
Mr Wadford pointed to the gulf between younger and older generations in terms of propensity for gig work, adding: “In our view, health and safety may be a factor in the low rates of gig work.” It’s sexual,” he added. baby boomer and traditionalists who do gig work. There are signs in our data that baby boomers and traditionalists may prefer socially distanced work. ”
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Gig work has continued to replace traditional full-time jobs for some workers in recent years, according to a report from the Bank of America Research Institute. (Alastair Pike/AFP via Getty Images/Getty Images)
of Bank of America Research Institute Report It also notes that workers are increasingly turning to gig work in place of traditional full-time jobs, with Bank of America’s internal data showing that gig workers will grow from traditional jobs to 2022. workers also earn a salary, indicating a gradual decline in workers receiving gig work year-round. Revenues have continued to increase since 2021.
“The proportion of gig workers who also receive direct deposits from their traditional, or full-time, jobs has been trending down slightly since mid-2022,” Wadford explained.
“The proportion of gig workers who receive gig income for all 12 months of the year, representing full-time gig work, has increased every year since 2021. These signs of increased full-time gig work are a solid tailwind. This is also true for consumers, as gig work can potentially provide stable employment without the need for additional income from a traditional job. ”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BAC | bank of america corporation | 36.88 | -0.07 | -0.19% |
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Wadford also noted that gig work declined from its peak in early 2022 to its most recent trough in early 2023, before gig work recovered its losses and reached a new peak this year.
“The decline in gig workers from its peak in early 2022 to its most recent trough in early 2023 appears to reflect a broader shift in consumer spending from goods to services,” he said. “The shift in consumer spending from goods to services is likely reflected in a decline in social commerce gigs starting in early 2022, while an increase in ridesharing is likely to be reflected in a decline in social commerce gigs starting in early 2023. offset the decline.”
