Gig Economy Stats Emphasize Highs and Lows of Freelance Work

Did you know?

…That more than 90 percent of workers in the United States say they would consider gig or freelancing work?

…That almost half of millennials use online independent contracting platforms to look for and find work?

…That gig workers earn nearly 60 percent less than traditional full-time employees—and most lack access to benefits, according to Prudential?

While the gig economy continues to grow, it also continues to have its challenges—including the many freelance employees who lost jobs due to the Covid-19 pandemic. There are, however, many benefits for all parties: Companies can save money since they don’t have to pay for full-time salaries, office space and benefits, while freelancers can enjoy greater flexibility, work-life balance and variety, even working for multiple companies at once.

Today, about one-third of all U.S. employees take part in the gig economy, according to Upwork, representing nearly 60 million workers who work an average of 43 hours per week. The best-paying positions are in AI and blockchain, and the government/public sector is the largest employer at 14 percent, followed by professional and business services, education and health, and manufacturing, based on Statista research.

Freelance and independent contracting work are increasingly popular in Mexico, India and other locations, and younger people, in particular, gravitate to gig work. Presently, most self-employed workers in the United States (nearly 75 percent) are white, according to USA Facts.

Notably, about 60 percent of gig workers tout the flexibility of their positions while only 27 percent of regular workers do so, according to Forbes. Women currently represent just under half of all freelance workers, although this number is expected to grow as more women opt out of traditional workplaces for reasons involving family, workplace discrimination and self-fulfillment.

Today, up to 25 percent of U.S. employees work from home or telecommute at least occasionally, based on a Global Workplace Analytics report, although this number too, is likely to trend upwards.

Life in the Gig Economy

The “gig economy” is a bigger part of our overall economy and workforce than ever before. Often defined as work that includes temp jobs, freelance projects and independent contracting versus a full-time position with one company, the gig economy allows for flexibility, creativity and independence.

A whopping 57 million Americans now participate in the gig economy, according to Gallup, and more than half of the workforce in the United States will consist of gig workers or those who have worked independently at some point by the year 2023, according to MBO Partners. Young people, in particular, are part of this movement, although recessions can create more opportunities for others interested in freelance or part-time positions.

What has changed and what stays the same

While online freelance platforms have been growing steadily for decades, more corporations are now getting into the gig economy business. To save money on full-time employees, some large companies are pursuing contractors, freelancers and seasonal workers for areas such as IT, social media marketing, design, writing and more.

Older Americans are also looking into gig work – with more seniors looking into work such as Lyft and Uber drivers or Airbnb hosts, among other flexible positions, so it is not just a young person’s game.

The beauty of the gig economy

While full-time work does often come with healthcare and benefits, more people today are interested in following a dream or passion than crunching numbers or spending every day doing the same work inside the same building. Gig work allows people to come and go, to work when they need money and then to travel, pursue a hobby or simply enjoy more leisure time. It also allows the flexibility and convenience that some families require, for example, allowing one parent to work at night to avoid child care costs.

Many college graduates are now choosing to work for themselves or find a flexible position for several years before moving on to something more steady or completing another degree program. Likewise, anyone struggling to find a full-time job can find part-time gig work in areas such as delivery, technology, the arts and more.

Ultimately, the gig economy is clearly here to stay, and will likely continue to explode as more people either struggle to find the right full-time job or choose to pursue more flexible or meaningful work. Furthermore, the gig economy is changing the way businesses of all shapes and sizes work, as companies realize they need to offer more flexibility to maintain satisfied employees.