Why the 'Gig' Economy May Not Be the Workforce of the Future

Mounting evidence detailed in a study from the JPMorgan Chase Institute suggests the so-called gig economy may not deliver the financial returns many workers are expecting, reports the Associated Press . The study casts doubt on earlier predictions that freelancing would comprise most U.S. employment by 2027, noting for example that among drivers, 58 percent work only three months or less each year via online economy websites. JPMorgan Chase's review of online platforms providing home improvement work estimates that 33 percent of their employees perform gig work for only three months a year or less. "People aren't relying on platforms for their primary source of income," says the Institute's Fiona Grieg. Furthermore, a slowdown in gig workers is evident due to declining salaries among freelance drivers in response to fierce competition. The study found in March 2018, about 1.6 percent of families participated in the gig economy, versus 1.5 percent last year. The Institute observed transportation's increasing dominance in the gig economy, with driving accounting for 56 percent of all gig work, up from 6 percent in 2013. Meanwhile, selling items via online sites has dived from 72 percent to 19 percent. "It's really those transportation platforms that have grown tremendously and now represent the lion's share of the dollars and participation," Grieg notes.