America’s labor market is cooling, and workers are quietly turning to Uber and DoorDash to fill the income gap

Core Insights - The labor market in America is cooling, with the gig economy absorbing some of the employment strain as traditional payroll growth slows [1][2] - Approximately 20% of individuals who experienced job loss or reduced hours turned to gig platforms for income support [2] - The gig economy is becoming a backstop for workers, with 15% of those classified as unemployed or "not in the labor force" actually engaged in gig work [6] Labor Market Trends - Over 153,000 job cuts were announced in October, marking the worst reading for that month since 2003 [3] - Private employers reported an average loss of 11,250 jobs per week for the four weeks ending October 25, a decline from earlier reports indicating job gains [4] - Companies have announced over 1.1 million layoffs in 2024, a 44% increase compared to the previous year, with significant reductions in tech and retail sectors [5] Gig Economy Dynamics - Gig hours have increased in cities where traditional payroll growth has slowed, indicating that workers are taking on extra shifts to compensate for lost income [2] - Gig workers earn only 50%-65% of what they made in traditional jobs, despite some marginal wage increases due to a decline in immigration [8] - Many gig workers face lower pay, instability, and lack of benefits, leading to a feeling of financial squeeze among Americans [7]