20+ Gig Economy Statistics for 2023: The State of Gig Work (2023)

FAQs

What percentage of the workforce is in the gig economy? ›

What percentage of the economy is gig workers? Approximately 9% of the American workforce participated in gig work over 2021. By value, gig workers contribute to about 5.7% of the U.S. GDP.

The size of the gig economy

Around 36% of US workers (approximately 57.3 million people in total) were part of the gig economy before the pandemic (Gallup, Statista). As of 2023, 73.3 million freelancers are estimated to work in the USA. 76.4 million are expected in 2024 (Statista).

Gig Economy Workers' Income Statistics

Depending on the platform and services provided, gig workers can earn an average of less than a $100 or $1,000 per month. Based on a study by Earnest Loans, 85% of gig workers earn less than $500, especially those in the ridesharing and task service platforms.

According to a 2020 survey, 50 percent of Generation Z respondents, or those between the ages of 18 and 22, reported participating in freelance work. A further 44 percent of Millennials, or those between the ages of 23 and 38, participated in freelance work.

The United States has the highest global market for gig workers, but India, Indonesia, Australia, and Brazil are rapidly growing, strong markets.

Formerly marginalized workers win because in the gig economy they can move from no job to some work. The people who struggle most in the gig economy are corporate workers whose skills are common, commoditized, or less in demand.

The number of gig workers is expected to grow

In 2022, 57.3 million people in the US completed some sort of freelance work, whether that was as a side hustle or their main source of income, and that figure is predicted to reach 86.5 million by 2027.

Independent contractors are the largest group in the nontraditional or "alt" workforce, and contract workers, employed by contract firms, are the fastest-growing segment.

Gig economy workers don't get benefits like sick days, health insurance, vacations days, or life insurance. The jobs come gig-by-gig, and there is no guaranteed future work. If consumers are not ordering food or needing rides, then no money is coming in for the gig worker.

According to the Zety study, Most gig workers (63%) earn between $7 and $15 dollars per hour and 61% believe they could be paid better if they were working in a traditional fulltime job. In addition, for 59%, gig work is their main source of income, rather than a supplementary side hustle.

Why is Gen Z more likely to freelance? ›

Among Gen Z respondents, specifically in the US, data showed: The majority of Gen-Zers in the US (73%) see freelancing as a smart option amid an uncertain economy. 41% of respondents said they see freelancing as a good way to make additional income amid inflation.

The working environment has gone through a major transformation over the last decades, particularly in terms of population in the workforce. The generations dominating the workforce in 2023 are baby boomers, Generation X, millennials and Generation Z.

AirbnbOpens a new window is among the world's top gig economy companies for home rentals. It has a massive full-time workforce (12,000+ employees across the world), and millions of homeowners listing their property on the website.

The term "gig economy" means a general workforce environment, which includes short-term employment, contractual jobs, and independent contractors. It is also called "freelancer economy", "agile workforce", "sharing economy", or "independent workforce".

The gig economy spans virtually every industry, with businesses using gig workers in most sectors, including but not limited to: The public sector including education, health and care services. Local and central government. Charities.

Gig workers, just like W-2 employees, have access to Social Security income when they retire — but only if they pay into the program via Social Security taxes. In fact, the Social Security tax rate for self-employed individuals is 12.4%, which is twice the rate of W-2 employees.

The data shows that the number of Americans participating in gig work decreased to 10.1% of the labor force in 2017. Previously, this number was 10.9% in 2005.

Thus, the gig economy, for all its benefits in fulfilling the labor gaps of day-to-day life, is not sustainable. It is subject to high-volume turnover which creates gaps in coverage for platforms connecting gig workers to users — and sometimes a shortage of experienced workers.

The number of global gig workers is expected to rise to 78 million in 2023. 50% of freelancers are skilled workers in fields like IT, programming, counseling, and marketing. 36% of freelancers freelance as a full-time job. 86% of freelancers think the best days for freelancing are still to come.

What is the difference between gig and gig economy? ›

A gig is a job that only lasts a certain period of time. The gig economy consists of consumers, workers and companies. The workers are paid per task, project or work contract.

Survey responses from 1,000-plus subjects very much confirmed that gig work is here to stay. 59 million Americans— 36% of the workforce—are classified as gig workers.

We discovered that the most effective independent workers navigate this tension with common strategies. They cultivate four types of connections — to place, routines, purpose, and people — that help them endure the emotional ups and downs of their work and gain energy and inspiration from their freedom.

Building comprehensive schemes that include healthcare benefits, sick pay and tangible perks will go a long way in showing gig workers that you value them and the skills they bring to your company. Rewards schemes are also a great way to attract talent and engage high performing workers.

Examples of gig workers include freelancers, independent contractors, project-based workers and temporary or part-time hires. Gig apps and digital technology are often used to connect customers and gig workers.

Instead of a traditional, in-office, full-time job with a single company, gig workers work as short-term, temporary, or independent contractors for one or a variety of employers (though they are not employers in the traditional sense).

Gig Economy Income is Taxable

From part-time, temporary or side work. Not reported on an information return form — like a Form 1099-K, 1099-MISC, 1099-NEC, W-2 or other income statement. Paid in any form, including cash, property, goods, or virtual currency.

In fact, a 2021 report found that 40% of gig workers would be motivated to work more often for a company if they offered faster and more regular pay, preferring to be paid weekly (45%) or even daily (36%).

Do gig economy workers count as employed? ›

Most gig workers are independent contractors while doing their gigs, though they might also be employees at their full-time job. As independent contractors, they are not entitled to benefits like paid time off or health insurance.

High stress. With no regularly scheduled income, the gig economy can be stressful. You may go through periods where it is difficult to find work so you need to plan for periods when you may receive less income.

For college students or those who are already employed full time, gig economy jobs offer avenues to bring in additional wages. A flexible work schedule allows these workers to earn enough income to cover some of their basic living expenses while still providing the freedom to pursue their other commitments.

While most gig workers said they were satisfied with the nature of their gig job, only 65 percent said they were satisfied with the pay they received, and 55 percent said they were satisfied with their work-life balance. Gen Z gig workers were the most likely to be happy with their gig jobs, the survey found.

Individuals working in the gig economy will still pay traditional income taxes. However, if you make over $400 per year from your work as a self-employed worker, then you also need to pay self-employment tax.

Gig workers gain flexibility and independence but little or no job security. Many employers save money by avoiding paying benefits such as health coverage and paid vacation time. Others pay for some benefits to gig workers but outsource the benefits programs and other management tasks to external agencies.

Gig workers are independent contractors, they are not employees. Employees become unemployed when they lose their job. Gig workers can be out of work, but still not qualify for unemployment due to their worker status.

By the numbers: Gen Z-ers surveyed said their top career goals were businessperson, doctor and engineer. Artist took the fourth spot.

Every generation thinks it has it harder than anyone else, but Generation Z — the young people who are now graduating from college and entering the labor market — may actually have a point.

Is over 50% of the US workforce likely to participate in the gig economy by 2027? ›

This statistic shows the number of freelancers in the United States from 2017 to 2028. It is projected that in 2027, 86.5 million people will be freelancing in the United States and will make up 50.9 percent of the total U.S. workforce.

Report Overview. The global gig economy market size was USD 355 billion in 2021. The global COVID-19 pandemic has been unprecedented and staggering, with gig economy experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

More than one-third of US workers (36%) participate in the gig economy, either through their primary or secondary jobs. This number comprises around 59 million Americans. It's not just multiple job holders; for 29% of US workers, their primary job is actually an alternative work arrangement.

A gig economy is a labor market that relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees. Gig workers gain flexibility and independence but little or no job security.