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Reviewed by Steve Rogers
The gig economic system is altering the way in which individuals work. From ride-sharing firms like Uber and Lyft to supply specialists like Instacart and DoorDash to Airbnb, Upwork, Fiverr, and lots of extra, thousands and thousands of individuals worldwide are turning to on-line platforms to complement their earnings and even construct new careers.
However what’s the present state of the gig economic system within the US?
This gig economic system statistics roundup ought to provide you with a greater concept of what number of gig staff there are, how a lot they’re making, who they’re, and what sort of actions they’re engaged on.
Key Findings
- 16.4% of the American workforce is made up of gig staff.
- 30% of youthful US adults (ages 18-29) have made cash by means of gig work in some unspecified time in the future.
- There are 9.94 million self-employed individuals within the US as of January 2023.
- Virtually half (47%) of gig staff within the US have full-time jobs.
- 1099-MISC contractors within the US made on common $6,810 monthly (vs. $6,340 amongst W-2 workers).
- Flexibility and supplemental earnings are one of the widespread causes for taking over gig work.
- 24% of gig staff lack medical insurance, and 29% earn lower than their state’s minimal wage. Staff usually lack vital advantages and protections.
What % of US Staff Take part within the Gig Financial system?
8.5% of the American civilian workforce is made up of gig staff, accounting for 14 million American adults (out of a complete of 165 million People within the civilian workforce)[2].
16% of American adults have reported having earned cash on on-line gig platforms in some unspecified time in the future. 9% of adults have reported gig platform-related earnings prior to now 12 months (survey performed in August 2021)[1].
How Many People Are Self-Employed?
Primarily based on the most recent depend in January 2023, 9.94 million individuals within the US are reported by the Bureau of Labor Statistics to be self-employed. That’s a rise of 397 thousand self-employed individuals since 2019[5].
Self-Employed Folks within the US
Observe: * In 1000’s of Individuals
** Incomplete information for 2023, solely consists of January 2023.
Gig Work Demographics
Gig Staff by Age
Expertise taking over gig work is commonest with youthful adults, with 30% of respondents ages 18-29 years previous within the US claiming to earn money this manner in some unspecified time in the future, adopted by an 18% participation fee within the age group of 30 to 49 years previous. Lower than 1 in 10 (7%) adults older than 65 reported collaborating within the gig economic system in some unspecified time in the future[1].
Gig Work Participation within the US by Age
Gig Work Participation within the US by Revenue Degree
Gig Staff by Revenue
Gig work is extra widespread amongst lower-income earners than it’s amongst middle-income earners or upper-income earners. Whereas 25% of lower-income earners (with a household earnings of lower than $42K) have participated within the gig economic system, solely 13% of middle-income earners ($42K-$125.9K) did so, and 9% of upper-income earners (over $125.9K) made cash by means of on-line gig platforms[1].
Gig Staff by Gender
Within the 2021 State of Gig Work report from Pew Analysis, 17% of feminine American adults reported having earned cash from gig platform work in some unspecified time in the future, whereas 15% of male US adults stated that they had earned cash this manner[1].
Gig Work Participation within the US by Race
Gig Staff by Race
Hispanic adults within the US prepared the ground in gig work participation, with 30% reporting earnings from gig platform work, adopted by 20% of Black adults, 19% of Asian adults, and 12% of White adults within the nation[1].
Gig Work by Business
The recreation and building industries within the US are main the way in which with the very best share of gig staff, 38% and 33%, respectively, adopted by enterprise providers, the place one-third are employed as gig staff, not as conventional W-2 workers.
The manufacturing sector makes use of the bottom variety of gig staff, with solely 2% of the employees employed as 1099-MISC contractors or short-term W-2 workers[3].
Gig Employee Share within the US by Business
Gig Employee Revenue by Business
Gig staff reportedly usher in from $1,080 to $11,130 in common month-to-month earnings relying on the business, with mining paying probably the most ($11,130) for 1099-MISC staff and manufacturing ($3,180) main the way in which for short-term W-2 workers[3].
Gig Employee Revenue within the US by Business
Gig Work as a Most important or Facet Job
Pew Analysis reviews that gig work has been a aspect job for practically 7 in 10 (68%) current gig staff within the US, whereas solely one-third (31%) declare it was their most important supply of earnings[1].
In keeping with Federal Reserve information, practically half (47%) of gig staff within the US additionally had full-time roles, whereas 22% had been employed on a part-time foundation. Solely 11% of American gig staff are reported to make at the very least 50% of their earnings from gigs[6].
Causes for Taking Up Gig Jobs
In keeping with a Pew Analysis Middle survey, greater than half of gig platform staff report taking over gig jobs attributable to income-related causes, notably “wanting to avoid wasting up more money” (56%) and “needing to cowl gaps, modifications in earnings (52%)”[1].
Different widespread causes for collaborating within the gig economic system embody the capability to manage their schedule (49%), and desirous to be their very own boss (35%)[1].
Primarily based on ADP insights, work-life stability (44%) and pleasure (38%) are the highest causes to work amongst 1099-MISC contractors within the US. For workers in conventional work preparations, advantages (51%) and monetary safety (40%) are the driving components[3].
Forms of Gig Work within the US
Because of the lack of a standard definition for gig work, some researchers embody gig work accomplished offline and on-line (as within the case of the Federal Reserve), whereas others, just like the Pew Analysis Middle, focus totally on on-line platform work.
Primarily based on the Federal Reserve’s evaluation of gross sales actions, 9% of American adults bought items on-line, whereas one other 5% bought items at flea markets as gig staff. A complete of 13% of adults carried out some sort of gross sales exercise as gig staff[6].
Forms of Gig Work Actions (gross sales exercise)
In keeping with the identical evaluation wanting into service actions, 16% of gig staff accomplished some work associated to service, together with 6% for home cleansing, and property upkeep, and 3% for childcare or eldercare providers[6].
Forms of Gig Work Actions (service exercise)
When wanting particularly into on-line gig platforms, the biggest share of People reported making deliveries (7%), performing family duties (6%), or driving for a ride-hailing app (5%) as one of the widespread gig duties[1].
Forms of Gig Work Actions (on-line gig platforms)
Gig Employee’s Advantages and Protections
The gig economic system provides staff a excessive diploma of flexibility, however staff within the gig economic system could lack entry to vital advantages related to conventional employment.
- 24% of gig staff reported having no medical insurance, with 58% of these citing prohibitive price as an impediment[7].
- 48% of gig staff say their employment standing impairs their entry to medical insurance[8].
- Solely 21.9% of nontraditional staff participated in an employer-sponsored retirement plan in 2020[9].
- 14% of gig staff earned lower than the Federal minimal wage on an hourly foundation. 29% earned lower than their state’s minimal wage [10].
- 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[10].
- 37% of gig staff reported being handled rudely. 35% have felt unsafe whereas working, and 19% have skilled undesirable sexual advances whereas working[1].
In keeping with the Financial Coverage Institute, gig staff lack extra time pay, unemployment insurance coverage, well being and security protections, and the precise to a union. The shortage of paid sick days, household depart, and trip time can result in overwork and burnout[10].
Conclusion
The gig economic system provides each benefits and downsides to staff. Flexibility, the flexibility to manage schedules, the flexibility to complement standard earnings, and being your personal boss are among the many main benefits.
On the draw back, gig staff could lack vital advantages like medical insurance and employer-sponsored retirement plans, and so they could need to handle extra complicated tax conditions. Staff can handle these points on their very own, nevertheless it takes additional effort. Gig staff in much less expert occupations typically tackle sub-minimum wages simply to realize expertise, with little safety from exploitative practices.
The gig economic system provides each positives and negatives, however for higher or worse, it’s right here to remain!
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