As America’s labor market cools, the gig economy steps up to absorb some of the employment strain. About 20% of individuals who experienced pay loss turned to gig work to compensate, with a rise in gig hours in cities where traditional payroll growth slowed, according to a Goldman Sachs analysis.

The gig economy serves as a backstop amidst over 1.1 million layoffs this year, led by tech and retail companies like Amazon, Target, and UPS. However, gig workers earn only 50%-65% as much as in traditional jobs, highlighting the challenges of lower-paying, unstable roles amid a shrinking labor market.

As the delayed September payrolls report approaches, uncertainty looms over the state of hiring. Some Fed officials shift towards a more cautious tone on additional rate cuts, reflecting the complexity of the economic landscape. The gig economy offers a safety net, but its limitations underscore the broader challenges facing workers and employers alike.

Read more at Yahoo Finance: America’s labor market is cooling, and workers are quietly turning to Uber and DoorDash to fill the income gap