Working gig shifts: a growing local trend – Part I of II

This is the first of two articles about a growing trend across northeast Ohio, including Stark County, where employed adults are adding gig shifts to their work lives to help make ends meet financially. The first article details the trend and what is happening, while the second article will explore why it is happening and possible ways to close the wage gap between earnings and living expenses.

The next time a DoorDash driver brings food to your house or office, you might recognize the driver as someone from your workplace.

Research has recently shown a trend in which northeast Ohio’s workforce is supplementing income from full-time and part-time jobs by taking on gig shifts.

The trend of people doing gig work continues to rise. According to the U.S. Chamber of Commerce, “Amid economic uncertainty and shifts in the labor market, participants in the ‘gig economy’ have risen in recent years. These independent contractors or freelancers are expected to make up a $2.18 trillion industry by 2034.”

The U.S. Chamber describes gig work as any individual task, short-term project or ongoing work that an independent worker completes for a client who is not their W-2 employer. Such jobs can be project-based, hourly or part time and may involve ongoing contracts or temporary positions. Gig work includes delivery and driving jobs, as well as home and local services. 

Walsh University economist and Dean of the DeVille School of Business Dr. Marc Fusaro has seen a trend developing in which many workers are doing “what looks like full-time work for part-time pay,” and he said many working adults are adding gig shifts to help make ends meet for their families.

Fusaro has an extensive background in economics and has developed and implemented numerous finance- and economics-related research projects and educational programs. He earned a bachelor’s degree in economics and mathematics from the University of Scranton and a doctorate in economics from Northwestern University.

His research interests include the banking industry’s market structure and household financial management, with a focus on overdraft checks, debit card usage and payday loans. Fusaro has published research in academic journals including Economic Inquiry, the Journal of Macroeconomics and the Journal of Consumer Policy.

“As an economist, I see a lot of workers doing what looks like full-time work but earning what amounts to part-time pay,” Fusaro wrote in an email interview. “When people lose hours or their regular pay doesn’t keep up with rent and groceries, they turn to driving or delivery apps. Those gigs plug the hole in the short term, but the numbers show they usually don’t restore a full paycheck when accounting for costs like gas, car wear and unpaid time on the app. Gig work has become a financial pressure valve. It keeps families afloat, but it rarely gives them the stability or benefits that come with a traditional middle-income job.”

Gig work such as Instacart, DoorDash, Uber and selling items on eBay are among the types of jobs data show northeast Ohio workers are adding to their work lives to increase wages. Additional income from gig shifts is often used to help fill shortfalls in Ohio’s most common jobs, particularly when families need more income to cover major expenses such as rent, child care, groceries and transportation.

“Northeast Ohio gives us a clear picture of what’s going on,” Fusaro said. “A recent breakdown of the 10 most common jobs in the region shows that seven of those 10 pay less than a living wage for a single adult, and four pay so little that a typical worker with a family of three would likely qualify for food assistance.”

Fusaro said the living-wage threshold for Greater Cleveland is derived from the MIT Living Wage Calculator, which defines a living wage as the hourly amount an individual must earn to cover basic expenses without public assistance, including food, housing, transportation, health care and taxes.

For Greater Cleveland, the living wage for a single adult with no children is about $19.66 per hour, with higher thresholds for adults with children. Earnings below that level mean many workers struggle to cover necessities without relying on aid, debt or multiple jobs.

According to research from Signal Cleveland, the 10 most common jobs in the Cleveland area in 2023 were registered nurses; general and operations managers; fast food and counter workers; cashiers; stockers and order fillers; retail salespersons; laborers and freight, stock and material movers; home health and personal care aides; customer service representatives; and general office clerks.

“Registered nurses and general and operations managers still pay solid, middle-class wages,” Fusaro said. “But fast food and counter workers, cashiers, retail salespeople and home health and personal care aides are all below both the living-wage line and the food-aid threshold at their median pay. That’s the heart of the anxiety people are feeling: The jobs that are easiest to find don’t reliably cover the basics.”

Jobs on the list that fall below the living wage include fast food and counter workers, cashiers, stockers and order fillers, retail salespersons, laborers and freight, stock and material movers, home health and personal care aides, and customer service representatives. Fusaro estimates the average hourly wage across those seven jobs is $15.71.

Four occupations – fast food and counter workers, cashiers, retail salespersons, and home health and personal care aides – fall below the federal assistance threshold. Fusaro estimates the average annual pay for those jobs is $29,022, placing them roughly $4 to $5 per hour below the living-wage line.

What are typical earnings for gig jobs? Fusaro said recent research shows earnings for driving and delivery platforms vary widely by city, hours worked and expenses, and many published figures are platform- or survey-based rather than official government statistics.

For warehouse-style gig shifts on platforms such as Wonolo, an HR Dive analysis reported workers earned about $101 to $114 per full shift in its sample, with average hourly pay in the mid-teens. That illustrates how gig-shift pay often lands in a low- to mid-wage range comparable to other hourly jobs once expenses and unpaid time are considered.

In addition to income uncertainty and unpredictable earnings, the Association for Entrepreneurship said challenges of gig work include a lack of worker protections, limited benefits such as health insurance, and concerns about consumer and worker protection, quality control, liability and dispute resolution.

The association also noted several upsides, including flexibility and autonomy, increased productivity when workers have more control over their schedules, and, in some cases, expanded job opportunities.

The second article will take a closer look at why the trend is happening and possible solutions.