40 Gig Economy Statistics You Must Learn: 2024 Market Share & Data Analysis

In the past several years, a growing number of workers have turned gig economy—that section of the labor market that relies on short-term contracts—jobs into their main source of income. The growth in the number of gig economy workers has become even more apparent at the onset of the COVID-19 outbreak in 2020. With businesses laying off employees or cutting down on operating hours, 9-5 workers had to seek other opportunities to either supplement their cash flow or to become full-time independent workers.

With the help of technology like economy sharing apps and freelance platforms, finding gig work has become even more convenient. As the demand for gig economy jobs grows at an exponential rate, the workforce structure is also gradually making a shift. In this article, we look at some relevant gig economy statistics that cover different aspects of the gig economy.

General Gig Economy Statistics

According to a study conducted by ADP Research Institute, the gig economy accounts for a third of the world’s working population. It is no wonder that this industry is set to cross the $500 billion mark in gross volume within a five-year period. In this section, let us take a look at some of the statistics that illustrate how vast and progressive this industry is.

• Gig economy has the second-highest number of work opportunities offered. (Hayes et al., 2019)
• 24% of workers across 19 countries are full-time gig workers while 9%are also employed in a traditional setting. (Hayes et al., 2019)
• Gig economy’s market was worth $248.3 billion in 2019 and was estimated to reach $296.7 billion in 2020. (Sbai, 2021)
• Approximately 68 million workers in the United States work freelance. (Statista, 2021)
• 36% of the US workforce have done freelance works in the past 12 months. (Upwork, 2020)
• By 2028, the population of US-based freelance workers is projected to reach 90.1 million. (Statista, 2021)
• 75% of freelancers work in the arts and design industry compared to only 25% of non-freelancers. (Upwork, 2019)
• 78% of gig workers plan to do the same gig work or more in the next year. (DaVinci Payments, 2021)
• 40% of workers participate in gig work while still employed, compared to 30% prefer doing only gig work full time. (DaVinci Payments, 2021)
• Professional services account for the majority of part-time (14.9%) and full-time (17%) gig workers. (Hayes et al., 2019)
• 58% of the gig economy’s billion-dollar gross volume is generated from transportation-based services like ridesharing and carpooling platforms. (Mastercard and Kaiser Associates, 2019)

Demographics of Gig Economy Workers

In this section, we will delve deeper into the demographics of gig economy workers. Behind the number of freelancers and other independent workers, below are some of the statistical characteristics of individuals that take part in this industry.

• 59% of freelancers in the US are male and 40% are female. (Statista Research Department, 2019; Upwork, 2019)
• 53% of the freelancer population in the US are made up of Gen Zers or those aged 18 to 22 years old. (Upwork, 2019)
• In 2020, 26% of freelancers were 55 years old and older. (Upwork, 2020)
• 65% of freelancers in the 55-year-old and older age bracket see freelancing as an ideal transition into retirement. (Upwork, 2020)
• 50% of Gen Zers have participated in freelance work in the past 12 months. (Upwork, 2020)
• 63% of gig economy workers have a full-time job on top of their gig work. (DaVinci Payments, 2021)
• 56% of gig workers have either gone to college or received a degree. (DaVinci Payments, 2021)
• Meanwhile globally, 52% of full-time gig workers are men and 48% are women. (Hayes et al., 2019)
• Furthermore, 61% of full-time gig workers around the world have a four-year degree or more. (Hayes et al., 2019)

Gig Economy Workers’ Income Statistics

Not having a fixed income is one of gig economy’s disadvantages. 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. Airbnb hosts, on the other hand, can earn as much as $900 per month on average. In this section, let us take a look at other data on gig economy workers’ earnings according to various studies.

• Gig economy wages and participation grew 33% in 2020. (daVinci Payments, 2021)
• In 2020, the estimated total earnings of adult US-based gig economy workers was $1.6 trillion. (daVinci Payments, 2021)
• The gig income has grown by 33% in 2020. (daVinci Payments, 2021)
• In 2019, 20% of freelancers in the US became high-earners or those who earn $100,000 annually. (Statista Research Department, 2021)
• 48% of freelancers get paid based on their fixed rate while 29% prefer hourly rate. (Statista Research Department, 2021)
• More than 50% of gig workers are Gen Zers and millennials who have an annual household income of $50,000 or less. (Statista Research Department, 2021)
• The hourly rate of gig workers in the US can range between $31 to over $115. (Sbai, 2021)
• According to a survey, 70% of gig economy workers admit that they would be more loyal to a gig work that pays them on the same day. (DaVinci Payments, 2021)
• 72% of gig workers would like relevant special savings offers delivered with their gig work pay. (DaVinci Payments, 2021)
• More than 50% of independent workers from different parts of the world are supplemental earners. (DaVinci Payments, 2021)
• 17.8% of part-time gig workers participate in the gig economy for additional income. (Hayes, et al., 2019)
• 61% of gig workers believe that it is important to use scheduling tools for tracking work hours. (DaVinci Payments, 2021)

The Impact of COVID-19 on the Gig Economy

As industries have either suffered, thrived, or barely survived the economic downturn, the gig economy flourished. Based on a study conducted by daVinci Payments, it is clear that the pandemic has only accelerated the growth of the gig economy based on the number of new participants and the increasing demand for gig workers. Combining talents and making the most of remote work tools, the transition has become easier than before.

• In 2020, 23 million new participants joined the pool of gig workers in the US. (daVinci Payments, 2021)
• 12% of the US workforce started freelancing in 2020. (Upwork, 2020)
• 75% began freelancing to support their financial stability during COVID-19. (Upwork, 2020)

There, however, is a downside to this growth. Although the number of workers participating in the gig economy has soared, the number of workers who have been freelancing pre-COVID-19 has decreased. In a study conducted by Upwork on the state of freelancing in 2020, the negative impact of the pandemic on existing freelancers was unveiled.

• 10% of US-based freelancers have paused freelancing at the onset of COVID-19.
• 28% of paused freelancers are either on leave or unemployed, and 51% still have other sources of work.
• 41% of freelancers have been doing less work amid the coronavirus pandemic.
• 17% of paused freelancers are made up of students, homemakers, and retirees.
• Among the paused freelancers, 88% are still willing to do freelance work in the future.

What are the legal implications of gig work?

As the gig economy continues to expand, legal implications and challenges are emerging that impact both workers and companies. Navigating these legal aspects is crucial for gig workers to protect their rights and for businesses to ensure compliance with labor regulations. Here are some key legal considerations surrounding gig work:

• Worker Classification: One of the most debated legal issues in the gig economy is the classification of workers as independent contractors rather than employees. This classification affects workers’ access to benefits like health insurance, paid leave, and retirement contributions, which are typically available to full-time employees but not contractors.
• Wage and Hour Laws: Gig workers may encounter challenges related to minimum wage laws and overtime pay. In some regions, there are ongoing legal cases to determine whether gig platforms should be required to pay workers a minimum wage and offer overtime for hours worked beyond standard limits.
• Tax Obligations: Gig workers are generally responsible for managing their own taxes, including paying income tax and self-employment tax. This can be complex, as gig workers often have multiple income streams and may need to track expenses and income from different platforms.
• Health and Safety Protections: Unlike traditional employees, gig workers may lack workplace protections related to health and safety. This can be an issue for workers in physically demanding gig jobs, such as delivery or ridesharing services, where risks may be higher.
• Privacy and Data Security: Many gig platforms collect a significant amount of personal data from workers and clients. Privacy laws vary by region, and gig workers should understand their rights regarding data use, retention, and protection on these platforms.
• Access to Benefits: In response to growing advocacy, some regions are exploring regulations to provide gig workers with access to benefits like health care, unemployment insurance, and sick leave. New policies may emerge to bridge the gap between gig workers and traditional employees in terms of benefits and job security.

Reshaping the Workforce Amid a Global Crisis

When COVID-19 struck in 2020, no one expected how much it would change the business landscape and the very nature of the workforce in general. With traditional labor markets disrupted, freelancing and remote work, which have previously been overshadowed by traditional office jobs, are now seen as new trends that will reshape how employment and business operations will fare out in the future. As more workers embrace flexibility in their work schedules and control of their working conditions, going back to the orthodox 9-5 job has become a difficult choice, considering the health risks regular office jobs now pose. And by sharing with you the gig economy statistics gathered in this article, we hope to have given you some key insights into this work trend and its potential.

Key Insights

• The gig economy constitutes a third of the world’s working population and is projected to exceed $500 billion in gross volume within five years.
• The gig economy offers the second-highest number of work opportunities globally.
• In 2020, the gig economy market was estimated at $296.7 billion, with approximately 68 million freelance workers in the United States alone.
• By 2028, the number of US-based freelancers is projected to reach 90.1 million.
• Demographically, 59% of US freelancers are male, with Gen Zers comprising 53% of the freelancer population.
• Income among gig workers varies widely, with many earning less than $500 monthly, though some, like Airbnb hosts, can earn significantly more.
• The COVID-19 pandemic has accelerated the growth of the gig economy, with 23 million new participants in the US in 2020 alone.
• Despite the pandemic’s growth of the gig economy, some freelancers paused their activities, with 28% on leave or unemployed.
• The shift towards freelancing and remote work is reshaping traditional workforce structures, making 9-5 jobs less attractive due to newfound flexibility and control over working conditions.

FAQ

1. What is the gig economy? The gig economy refers to a labor market characterized by short-term contracts or freelance work as opposed to permanent jobs. It includes jobs found through technology platforms that connect workers with clients, such as ridesharing, food delivery, and freelance services.
2. How has the gig economy grown in recent years? The gig economy has grown significantly, now accounting for a third of the world’s working population. It saw substantial growth during the COVID-19 pandemic as many traditional workers turned to gig work for financial stability.
3. What are some common industries within the gig economy? Common industries include transportation (ridesharing and carpooling), arts and design, professional services, and various freelance tasks facilitated through platforms like Upwork and Fiverr.
4. What demographic trends are seen among gig workers? In the US, 59% of freelancers are male, and a significant portion is young, with Gen Zers (ages 18-22) making up 53% of the freelancer population. Additionally, 63% of gig workers hold full-time jobs alongside their gig work.
5. What impact did COVID-19 have on the gig economy? COVID-19 accelerated the growth of the gig economy, with 23 million new participants in the US in 2020. However, it also led some existing freelancers to pause their work due to decreased demand or health concerns.
6. What are the income levels of gig workers? Gig workers’ incomes vary widely. While many earn less than $500 monthly, those in specific sectors like Airbnb hosting can earn significantly higher amounts. In 2019, 20% of US freelancers were high earners, making over $100,000 annually.
7. How is the future of the workforce expected to change with the rise of the gig economy? The rise of the gig economy is expected to lead to a more flexible and remote workforce, reducing the dominance of traditional 9-5 jobs. The trend towards freelancing and remote work is likely to continue reshaping employment structures and business operations.

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By Jenny Chang

Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success.