There’s now more stress heaped upon the unemployed to find work as the federal government enhanced $600 per week in unemployment benefits will end this month. In what feels like a potential Hunger Games scenario, we could foresee intense competition for opportunities, as millions of people pivot into the gig economy to put food on the table and have a roof over their heads.
Large numbers of people are likely to swarm toward Uber, Lyft, Instacart, Amazon Flex, Fiverr, Uber Eats, DoorDash, TaskRabbit and Target’s Shipt. Adam Ozimek, chief economist at Upwork, an app connecting freelancers with gigs, has seen a 50% increase in signups.
It is Economics 101. When there are more people looking for jobs than positions available, wages will be driven downward. As greater amounts of people hit the job market, the overall hourly pay will decline. With a continuing oversupply of people desperately needing work, it will force down the wages of everyone involved.
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