Secondly, and more impactful, Bloomberg estimates that the average wage coverage gap is bigger than ever at $1,400. Simply, unemployment claims payouts have not kept up with inflation. On the contrary, gig/part-time jobs have. Therefore, laid-off workers are better off working for Uber and other flexible gig economy jobs. Michael Green of Simplify Asset Management sums this up well. “Effectively, we’ve created private market unemployment insurance with gig economy work where the hassle/compensation of obtaining traditional unemployment insurance is simply not worth it. This is consistent with rising unemployment rates for college grads and suggests that policy is missing yet another important signal.” To his point, low-paying part-time jobs replace jobless claims but make the labor market look healthier than it is.
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