53 Important Gig Financial system Statistics

The gig economic system, characterised by momentary or versatile jobs, is an more and more vital a part of the worldwide economic system. Understanding the statistics behind this development is of nice worth for employers, staff, and companies adapting to this new method of labor. This text gives a complete information to the history and future of gig economy with over 53 important gig economic system statistics.

The Development of the Gig Financial system

The gig economic system has been experiencing a big surge lately. This development is fueled by a mixture of technological developments, altering workforce demographics, and evolving enterprise wants. As conventional employment fashions are being challenged, extra people are turning to gig work for its flexibility and autonomy, whereas companies are leveraging it for value effectivity and entry to a broader expertise pool.

This shift in direction of a extra versatile, project-based, and on-demand workforce isn’t just a fleeting development however a basic change in the best way we view work and employment. The gig economic system’s fast development signifies a paradigm shift in our society, underscoring the necessity for companies, policymakers, and staff to adapt and thrive on this new panorama.

The Rise in Unbiased Employees

In 2022, freelance work within the American workforce elevated to 39%, marking a three-percentage-point rise from the earlier yr. Amongst hiring managers partaking impartial expertise, 66% intend to spice up their utilization or the variety of freelancers throughout the subsequent two years. Varied types of freelancers considerably contributed $1.35 trillion to the U.S. economic system in annual earnings in 2022, representing a $50 billion enhance from 2021.

The worldwide gig economic system includes as much as 12% of the labor market and generated $5.4 trillion in income in 2021. Projections counsel that India’s gig workforce will develop to 23.5 million staff by 2029-30, whereas within the UK, gig economic system staff represent merely 1.4% of whole employment.

Gig Financial system Platforms and Marketplaces

The projected gross quantity of the gig economic system is predicted to achieve $455.2 billion.
Among the hottest gig platforms are Airbnb (trip leases), Amazon Flex (package deal supply), Deliveroo (meals supply), Dolly (shifting), DoorDash (meals supply), Fiverr (freelance work), Instacart (grocery service supply), iVueit (industrial property photos), Lyft (ridesharing), Amazon Mechanical Turk (on-line crowdsourcing), Qwick (venue staffing), Rover (canine care), TaskRabbit (odd jobs), Uber (ride-hailing), and Upwork (freelance work).
In 2022, 16% of Individuals used a gig platform to earn extra revenue. By 2023, that determine has risen to just about 20%.
Gig staff contributed round $1.21 trillion to the U.S. economic system in 2020, which is roughly 5.7% of the total U.S. GDP.
Within the U.S., gig staff’ incomes diversified considerably. Practically half of them, 49%, made lower than $50,000 yearly. About 28% fell into the revenue vary of $50,000 to $99,000 yearly, whereas 23% earned between $100,000 and $4 million yearly from their gig work.

Gig Financial system Statistics: Employment and Revenue

Not less than 59 million American adults participated within the gig economic system in 2020, roughly 36% of the U.S. workforce.
24% of staff throughout 19 international locations are full-time gig staff while 9% are additionally employed in a conventional setting.
40% of staff take part in gig work whereas nonetheless employed, in comparison with 30% preferring doing solely gig work full time.
There have been 9.94 million self-employed individuals within the US as of January 2023.
A greater work-life steadiness is why 70% of freelancers opt to work within the gig economic system.

Employment Standing and Varieties of Gig Employees

Roughly 39-40% of U.S. adults have a facet hustle.
In 2023, Individuals with a facet hustle make, on common, $810 a month from the additional work.
Practically 5 million people had revenue reported for platform-based gig work to the IRS.
The entire quantity of people that collected cash from platform gig work greater than tripled from 2017 to 2021.
Virtually half (47%) of gig staff within the US have full-time jobs.
30% of youthful US adults (ages 18-29) have made cash by gig work in some unspecified time in the future.

Revenue and Job Stability

56% of gig economic system staff say they take gig jobs to earn cash on high of their fundamental supply of revenue.
The very best-paying gig economic system job in america is therapeutic massage remedy — paying a mean $27.34 an hour.
The typical annual revenue of full-time employees is $62,500, whereas for impartial staff it’s solely $36,500.
One of many causes for such a big discrepancy is that gig staff work much less on a weekly foundation than conventional staff (25 hours every week versus 40 for full-time staff). This makes it troublesome for American freelancers to handle their every day funds.
Revenue ranges enhance with age. Millennial impartial staff earn a mean of $27,500, Gen Xers earn $36,300, and baby boomers $43,600. It’s fascinating to notice that the common child boomer earns greater than the common Gen Xer, although the latter works longer hours.

Gig Financial system and Employee Satisfaction

In 2021, just one% of gig economic system staff in america reported being very dissatisfied with impartial work. In distinction, 77% of individuals working within the gig economic system reported being very glad with their job.
The gig economic system provides flexibility and autonomy and appeals to staff’ entrepreneurial spirits.
79% of freelancers are happier working independently than at conventional work.
Comfort and incomes potential have been probably the most highly effective persuaders adopted by suggestions from family and friends, along with adverts from gig service platforms.
With greater than 1 / 4 falling sufferer to fraud or id theft, whereas utilizing a gig platform, members count on gig platforms to guard identities and mitigate fraud.
Gig platforms normally don’t present gig staff with advantages similar to medical health insurance and paid break day.
Gig staff have much less job safety, and so they tackle extra danger doing gig work by utilizing their very own automobiles to do supply or their very own computer systems and instruments to do inventive freelance work.
37% of full-time impartial staff are aged 21-38.
About 73.3 million freelancers will work within the USA by 2023.

Flexibility and Management

The normal 9-to-5 grind is being incrementally changed by a mannequin extra reflective of as we speak’s fluid, digital world: gig work. This paradigm shift provides flexibility and autonomy and appeals to staff’ entrepreneurial spirits.
Gig economic system staff have many various causes for beginning work within the gig economic system and have a tendency to choose the versatile working hours and further revenue that the gig economic system permits them to have.
The gig economic system doesn’t solely consist of people that solely work gig jobs, as nearly all of gig economic system members have a full-time place along with their gig work.
In accordance with the most recent projections, there will likely be over 63 million gig staff within the US economic system by 2023.
Greater than 38% of the present US workforce participates within the gig economic system based mostly on 2023 projections.
In 2023, about 40% of gig staff reported working one (and just one) gig prior to now 12 months, barely down from 45% in 2020; 28% reported working two gigs and 32% reported three or extra gigs.
Flexibility and supplemental revenue are the most typical causes for taking over gig work.
In 2022, 60 million Individuals — 39% of the overall populace — engaged in some type of freelance work.

Work-Life Stability and Profession Development

Roughly 60% of worldwide staff say they’ve a superb work-life steadiness.
77% of staff have famous they’ve skilled burnout at their present job.
48% of Individuals think about themselves workaholics.
66% of American staff lack work-life steadiness.
77% of full-time US staff skilled burnout at their present job.

Challenges Confronted by Gig Financial system Employees

28% of paused freelancers are both on go away or unemployed, and 51% nonetheless produce other sources of labor.
Gig staff don’t get any job safety. They solely work on a project-to-project foundation.
16.4% of the American workforce is made up of gig staff.

Job Insecurity and Lack of Advantages

Gig staff don’t get the identical advantages as full and even part-time staff do.
24% of gig staff reported having no medical health insurance, with 58% of these citing prohibitive value as an impediment.
It’s previous time in 2024 to strengthen the revenue, advantages, and security web for staff in America’s gig economic system.

Monetary Instability and Financial savings

19% of gig staff reported going hungry as a result of they couldn’t afford meals, and 30% used Supplementary Dietary Help Program (SNAP) advantages, twice the speed of normal staff.
45% of gig staff reported they might not deal with a $400 emergency expense with out borrowing cash.
1099-MISC contractors within the US made on common $6,810 per month (vs. $6,340 amongst W-2 staff).
Lack of job safety is the most important concern for 30% of full-time impartial staff. The commonest fear amongst impartial staff is revenue instability. Freelance economic system statistics present that that is the most important fear for 47%, down from 56% in 2018. 28% of gig staff cite retirement planning as the most important problem whereas 26% are anxious about setting boundaries at work.

The Way forward for the Gig Financial system

The way forward for the gig economic system is poised to be a transformative drive within the international job market. Because the variety of freelancers and impartial contractors continues to rise, gig economic system platforms have gotten the first or secondary jobs for a lot of gig staff. These platforms will not be solely reshaping the normal job market but additionally providing new alternatives for full-time impartial staff.

The gig economic system dimension is increasing, with skilled and enterprise companies seeing a big enhance in freelance work. Gig staff report various experiences, with some having fun with the pliability and work-life steadiness it provides, whereas others grapple with the challenges of monetary instability and lack of conventional advantages.

Nevertheless, the most recent gig economic system statistics counsel a constructive development. Many gig staff earn a considerable revenue, and the variety of full-time gig staff is on the rise. This shift in direction of extra versatile work preparations is predicted to proceed, pushed by staff’ need for autonomy and the growing digitization of the worldwide gig economic system.

Lengthy-Time period Gig Financial system Developments

The long-term developments within the gig economic system are indicative of a paradigm shift in how work is conceptualized, pursued, and executed throughout numerous industries. This motion isn’t just reshaping the job market but additionally redefining the essence of employment, work-life steadiness, {and professional} growth. Under are some key factors that seize the essence and implications of those developments:

Enlargement of Gig Financial system Platforms: There’s a noticeable development within the quantity and number of gig economic system platforms, catering to a broad spectrum of abilities and companies. These platforms will not be solely growing of their person base however are additionally changing into extra specialised, providing area of interest alternatives that align carefully with the various abilities of freelancers.
Shift In direction of Unbiased Work: Extra people are leaning in direction of freelance and impartial work as main or secondary sources of revenue. This shift is basically pushed by the attract of flexibility, autonomy, and the potential for greater earnings in comparison with conventional employment.
Work-Life Stability and Autonomy: A major driver behind the gig economic system’s development is the need for higher work-life steadiness and autonomy over one’s work schedule and initiatives. Freelancers typically cite the power to decide on initiatives that curiosity them and the pliability to work from wherever as key advantages.
Challenges of Gig Work: Regardless of its development, the gig economic system brings challenges similar to job insecurity, unpredictable revenue, and the absence of conventional employment advantages like healthcare, retirement plans, and paid go away. These points pose vital dangers to the well-being and monetary stability of gig staff.
Regulatory and Coverage Evolution: There’s an ongoing evolution in laws and insurance policies to raised accommodate the distinctive nature of gig work. This consists of discussions and initiatives round offering gig staff with extra safety, advantages, and rights akin to these loved by conventional staff.
Growing Professionalization: The gig economic system is witnessing a development in direction of growing professionalization, with extra freelancers looking for to determine their work as reputable and sustainable companies. This consists of adopting extra formal enterprise practices, steady talent growth, and leveraging skilled networks.
Influence on Conventional Industries: Conventional job markets and industries are experiencing disruption because of the gig economic system, with firms more and more counting on freelance and contract staff for numerous duties. This shift necessitates diversifications in how firms strategize their workforce administration and growth.
Technological Developments: Developments in expertise play an important position in facilitating the gig economic system’s development. This consists of the event of refined platform algorithms, safe cost programs, and instruments that help distant work, collaboration, and challenge administration.
Globalization of Workforce: The gig economic system is contributing to the globalization of the workforce, permitting freelancers to supply their companies throughout borders. This opens up a world of alternatives for each staff and employers but additionally introduces complexities associated to cross-border funds, taxes, and laws.
Sustainability and Moral Issues: There may be an growing give attention to the sustainability and moral implications of gig work, together with issues about honest wages, employee exploitation, and the environmental affect of gig-related actions.

These developments underline the dynamic and evolving nature of the gig economic system, highlighting each its potential and the challenges that should be navigated to make sure its sustainable development and constructive affect on the broader job market.

Developments in Gig Financial system	Constructive Facets	Challenges to Tackle
Enlargement of Platforms	– Elevated selection and specialization of platforms. – Broader alternatives throughout completely different talent units.	– Market saturation resulting in competitors. – High quality management and reliability of platforms.
Shift In direction of Independence	– Larger autonomy over work. – Flexibility in selecting initiatives and schedules.	– Potential isolation and lack of group. – Issue in separating private and work life.
Work-Life Stability	– Capability to tailor work schedules to non-public wants. – Alternative to pursue passions and pursuits.	– Unpredictable workloads and revenue. – Overworking with out clear boundaries.
Regulatory Evolution	– Rising insurance policies aiming to offer extra safety and rights for gig staff. – Adaptation of legal guidelines to new work types.	– Lag in coverage adaptation to quickly altering gig economic system. – Inconsistencies in laws throughout areas.
Professionalization	– Freelancers treating their gigs as reputable companies. – Concentrate on talent growth and networking.	– Want for self-management abilities and enterprise acumen. – Entry to skilled growth assets.
Influence on Conventional Industries	– Flexibility for firms in workforce administration. – Entry to a worldwide pool of expertise.	– Disruption of conventional employment fashions. – Challenges in integrating gig staff with common staff.
Technological Developments	– Enhanced platforms for higher matching, collaboration, and cost. – Instruments supporting distant work and effectivity.	– Digital divide and entry to expertise. – Safety and privateness issues in digital workspaces.
Globalization of Workforce	– Alternatives for staff to entry international markets. – Various expertise pool for employers.	– Cross-border authorized and tax complexities. – Cultural and communication limitations.
Sustainability and Ethics	– Potential for diminished environmental affect with distant work. – Consciousness of honest labor practices.	– Guaranteeing honest wages and stopping exploitation. – Environmental affect of platform operations.

The Function of Expertise within the Gig Financial system

Expertise performs a pivotal position within the gig economic system, serving because the spine that connects gig economic system staff with alternatives. It has enabled the rise of quite a few platforms that cater to full-time impartial staff and conventional full-time staff in search of extra revenue or a greater work-life steadiness.

These platforms leverage superior algorithms to match staff with appropriate gigs, thereby streamlining the method of discovering work. Moreover, they typically present instruments that help with challenge administration, communication, and cost, making it simpler for staff to handle their gigs.

Improvements in expertise have additionally led to the event of recent sorts of gig work. As an illustration, the arrival of ride-sharing apps has created alternatives for drivers, whereas on-line marketplaces have opened up avenues for freelance designers, writers, and different professionals.

As expertise continues to evolve, it’s prone to additional remodel the gig economic system, creating new alternatives and challenges for gig staff. The way forward for the gig economic system will likely be formed by how successfully these technological developments are harnessed to learn each staff and companies.

FAQ: Gig Financial system Statistics

What components are driving the expansion of the gig economic system?

The expansion of the gig economic system is fueled by a number of key components together with the rise in gig websites and digital platforms that join freelance staff with jobs, the need for versatile work schedules, and the demand for supplemental revenue. Moreover, technological developments have made it simpler for people to supply their abilities and companies on a contract foundation, contributing to the growth of the gig economic system.

What’s the gig economic system development price?

The gig economic system has been experiencing a big development price over the previous few years. Though particular figures differ by supply, it’s broadly acknowledged that the variety of freelance staff and gig-related jobs has been growing steadily. This development is predicted to proceed as extra individuals search flexibility of their work lives and firms search for cost-effective methods to handle labor wants.

What share of Individuals work within the gig economic system?

It’s estimated {that a} substantial portion of the American workforce engages in some type of gig work. This consists of full-time freelancers, those that complement their revenue with gig jobs, and freelance staff who contribute to the gig economic system on a challenge foundation. The precise share fluctuates based mostly on definitions and sources, however the development signifies a rising reliance on gig-based employment.

What p.c of Millennials make up the gig economic system?

Millennials signify a big share of the gig economic system. They’re extra prone to embrace freelance work in comparison with different age teams, valuing the pliability, autonomy, and diversified alternatives that gig work provides. Millennials’ consolation with digital platforms and expertise additionally makes them well-suited for the sorts of jobs that the gig economic system encompasses.

What’s the common revenue within the gig economic system?

The typical revenue for gig economic system staff can differ broadly based mostly on the kind of work, the period of time invested, and the employee’s talent stage. Some freelance staff earn a considerable revenue by their gig work, whereas others might earn lower than conventional employment. Nevertheless, the gig economic system provides the potential for people to scale their earnings based mostly on their availability and work preferences.

How does the gig economic system affect staff’ revenue and job stability?

The gig economic system impacts staff’ revenue and job stability in various methods. Whereas some freelance staff get pleasure from greater incomes and the liberty to decide on initiatives, others might face challenges similar to revenue unpredictability and an absence of job safety. The absence of conventional employment advantages and protections can also be a priority for these counting on gig work as their main supply of revenue.

How does the gig economic system have an effect on work-life steadiness and profession development?

The gig economic system can provide improved work-life steadiness by versatile scheduling and the power to work from numerous areas. Nevertheless, the necessity to consistently search new alternatives can result in work encroaching on private time. Profession development within the gig economic system is much less easy than in conventional roles, with freelance staff typically needing to proactively hunt down talent growth and networking alternatives.

What’s the way forward for the gig economic system and its implications for the workforce?

The way forward for the gig economic system seems to be promising, with predictions of continued development and an growing variety of individuals collaborating as freelance staff. This shift has vital implications for the workforce, together with the necessity for insurance policies that help the distinctive wants of gig staff and the potential for conventional employment fashions to adapt. Because the gig economic system evolves, it could provide new alternatives for revenue technology, flexibility, and employment satisfaction.

Picture: Envato Components

This text, “53 Essential Gig Economy Statistics” was first revealed on Small Business Trends