Investing.com — Nearly all of gig employees labored for just one to 3 months previously 12 months, based on Financial institution of America’s current word.

The report, based mostly on inside deposit account information, finds that almost half of gig employees 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 counsel that almost all people flip to gig work to complement spending quite than as a constant revenue supply.

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

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

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

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

For social commerce, the annual improve “could be due in part to increased consumer demand for thrifted items bought via social commerce sites, which mirrors the broader trend of consumers trading down on goods in order to spend on experiences,” the report states.

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

The share of revenue from trip leases has been constantly minimal, “likely as rising real estate prices remain a high barrier of entry and international tourism remains strong,” BofA notes.

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

“Overall, the stability in gig employment is likely a good thing for the labor market,” BofA concludes.

“Although it’s not likely to be a major driver of full-time employment, it can be especially helpful for those looking to supplement their household’s spending or for people who need flexible work arrangements.”