About 1.5 million make their livelihood doing gig-type work such as food delivery with Uber Eats or Instacarts grocery shopping. For some it is full time and others a side hustle to add to their income. With some 53 million people applying for unemployment, the Gig Economy workers numbers are about to explode. With the ending of the federal enhanced $600 per week unemployment benefits on August 1st, the stampede into gig workers has begin. Add in the large number of people in between jobs or out of benefits. Workers need to put food on their table and gig jobs do just that.
Some apps like Fiver, have seen a 50% increase in signups already and are growing daily. With this huge influx of want to be workers, pay for gig-type work will drop. Basically more people bidding for the same opportunities brings competition for wages, thus lowering them. Look for this to effect the overall job market too. Employers do not need to sweeten their employment packages to keep workers with more applicants standing by. They will be in a position to pay less and ask for more and this lower end and white collar together.
For our economy. an over supply of workers. making less, will spend less money on cars, travel, vacations and clothing further adding to this swirling effect. Hopeful we figure out a solution before we ascend this downward spiral too far.
Meanwhile, support our Gig Workers if you can!