The gig economic system is altering the best way folks work. From ride-sharing firms like Uber and Lyft to supply specialists like Instacart and DoorDash to Airbnb, Upwork, Fiverr, and lots of extra, hundreds of 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 offer you a greater thought of what number of gig employees there are, how a lot they’re making, who they’re, and what kind of actions they’re engaged on.
Key Findings
- 16.4% of the American workforce is made up of gig employees.
- 30% of youthful US adults (ages 18-29) have made cash via gig work in some unspecified time in the future.
- There are 9.94 million self-employed folks within the US as of January 2023.
- Virtually half (47%) of gig employees within the US have full-time jobs.
- 1099-MISC contractors within the US made on common $6,810 per thirty days (vs. $6,340 amongst W-2 workers).
- Flexibility and supplemental earnings are one of the frequent causes for taking over gig work.
- 24% of gig employees lack medical insurance, and 29% earn lower than their state’s minimal wage. Staff usually lack necessary advantages and protections.
What % of US Staff Take part within the Gig Economic system?
8.5% of the American civilian workforce is made up of gig employees, accounting for 14 million American adults (out of a complete of 165 million Individuals 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 Individuals Are Self-Employed?
Based mostly on the newest depend in January 2023, 9.94 million folks within the US are reported by the Bureau of Labor Statistics to be self-employed. That’s a rise of 397 thousand self-employed folks since 2019[5].
Self-Employed Folks within the US
Notice: * 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Expertise taking over gig work is most typical with youthful adults, with 30% of respondents ages 18-29 years outdated within the US claiming to earn cash this manner in some unspecified time in the future, adopted by an 18% participation charge within the age group of 30 to 49 years outdated. 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 in style 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 via 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 they’d earned cash this manner[1].
Gig Work Participation within the US by Race
Gig Staff by Race
Hispanic adults within the US paved the way 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 development industries within the US are main the best way with the best share of gig employees, 38% and 33%, respectively, adopted by enterprise providers, the place one-third are employed as gig employees, not as conventional W-2 workers.
The manufacturing sector makes use of the bottom variety of gig employees, 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 employees reportedly usher in from $1,080 to $11,130 in common month-to-month earnings relying on the trade, with mining paying probably the most ($11,130) for 1099-MISC employees and manufacturing ($3,180) main the best way for short-term W-2 workers[3].
Gig Employee Revenue within the US by Business
Gig Work as a Primary or Facet Job
Pew Analysis stories that gig work has been a aspect job for almost 7 in 10 (68%) current gig employees within the US, whereas solely one-third (31%) declare it was their foremost supply of earnings[1].
In keeping with Federal Reserve information, almost half (47%) of gig employees within the US additionally had full-time roles, whereas 22% have been employed on a part-time foundation. Solely 11% of American gig employees are reported to make no less than 50% of their earnings from gigs[6].
Causes for Taking Up Gig Jobs
In keeping with a Pew Analysis Heart survey, greater than half of gig platform employees report taking over gig jobs as a consequence of income-related causes, notably “wanting to save lots of up more money” (56%) and “needing to cowl gaps, modifications in earnings (52%)”[1].
Different frequent 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].
Based mostly on ADP insights, work-life stability (44%) and delight (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].
Sorts 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 Heart, focus totally on on-line platform work.
Based mostly 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 employees. A complete of 13% of adults carried out some kind of gross sales exercise as gig employees[6].
Sorts of Gig Work Actions (gross sales exercise)
In keeping with the identical evaluation wanting into service actions, 16% of gig employees accomplished some work associated to service, together with 6% for home cleansing, and property upkeep, and 3% for childcare or eldercare providers[6].
Sorts of Gig Work Actions (service exercise)
When wanting particularly into on-line gig platforms, the most important share of Individuals reported making deliveries (7%), performing family duties (6%), or driving for a ride-hailing app (5%) as one of the frequent gig duties[1].
Sorts of Gig Work Actions (on-line gig platforms)
Gig Employee’s Advantages and Protections
The gig economic system gives employees a excessive diploma of flexibility, however employees within the gig economic system could lack entry to necessary advantages related to conventional employment.
- 24% of gig employees reported having no medical insurance, with 58% of these citing prohibitive price as an impediment[7].
- 48% of gig employees say their employment standing impairs their entry to medical insurance[8].
- Solely 21.9% of nontraditional employees participated in an employer-sponsored retirement plan in 2020[9].
- 14% of gig employees earned lower than the Federal minimal wage on an hourly foundation. 29% earned lower than their state’s minimal wage [10].
- 19% of gig employees 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 employees[10].
- 37% of gig employees 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 employees lack time beyond regulation pay, unemployment insurance coverage, well being and security protections, and the proper to a union. The dearth of paid sick days, household go away, and trip time can result in overwork and burnout[10].
Conclusion
The gig economic system gives each benefits and downsides to employees. Flexibility, the power to manage schedules, the power to complement standard earnings, and being your individual boss are among the many main benefits.
On the draw back, gig employees could lack necessary 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, however it takes further effort. Gig employees in much less expert occupations typically tackle sub-minimum wages simply to achieve expertise, with little safety from exploitative practices.
The gig economic system gives each positives and negatives, however for higher or worse, it’s right here to remain!
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