The gig economy is the future of many in working America?
Not so fast.
According to a report from The Wall Street Journal, JPMorgan Chase & Co. Institute data reveals that growth on gig platforms like Uber, TaskRabbit, Etsy, and many others is slowing considerably.
JPMorgan Chase reviewed bank records to see how many folks were actually being paid earnings from these platforms, and found that while there continues to be positive activity, it has slowed to a point that suggests the primary growth spurt may have come to an end.
According to the research, only 1% of adults are active on these gig sites during a given month now, a figure that contrasts with the 4.3% who’ve tried them out.
Some more telling numbers: Roughly 52% of those using labor platforms stop doing so after a year, and no more than 26% of folks are still using them after two years.
Commenting on the data, Diana Farrell, head of the JPMorgan Chase Institute, said, “The online platform economy continues to grow, but the pace of growth has slowed dramatically. As unemployment falls and more people gain traditional jobs, they are less likely to participate in the online platform economy and more likely to exit.”
By Robert G. Yetman, Jr. Editor At Large