Gig Work Rises Amid A Weak Job Market Despite Lower Pay

Benzinga

A Goldman Sachs report shows gig work is filling income gaps as the labor market weakens, with one in five affected workers turning to apps like Uber, DoorDash, and Instacart. Gig earnings are far lower and unstable, and analysts warn the sector can’t support workers broadly in a downturn.

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00:00It's Benzinga, bringing Wall Street to Main Street

00:02America's labor market continues to weaken as delayed government data approaches,

00:06and a new Goldman Sachs report shows that gig work is filling the gap for many workers,

00:11according to TipRanks. The report said that about one in five people who lost income

00:15had hours cut or were laid off turned to platforms like Uber, DoorDash, and Instacart to replace

00:21earnings. Goldman found that gig work grew the most in areas where payroll job growth slowed,

00:26which typically pay about half to two-thirds of prior wages and provide neither benefits nor

00:31reliable hours. Goldman said modest wage gains for gig workers haven't eased financial strain

00:37and warned that gig jobs wouldn't be able to support workers broadly in a recession.

00:41Analysts said DoorDash has the most upside while Instacart has the least.

00:45For all things money, visit Benzinga.com.

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