The simplest way to define the gig economy is all the digital platforms which allow freelancers and clients to connect.
It’s the most effective way for individuals to connect with businesses, allowing virtually anyone to establish their own business, start a side hustle, and get out of the traditional rat race.
The global pandemic increased the popularity of remote working.
It also caused a downturn in the economy which has caused more people to look at gig work.
It’s flexible and you can do it from almost anywhere. In short, the gig economy is booming.
Whether you’re an employer or an individual, you’re going to want to know how big the gig economy is and the following fascinating facts.
Key Statistics
- The value of the gig economy in 2023 is expected to be $455 billion (USD)
- 36% of the US workforce are part of the gig economy
- 16% of US adults have earned money through gigs
- Gig workers make up 5.7% of US GDP
- Within the next 12 months the gig economy is expected to be larger than the traditional economy
- 30% of fortune 500 companies are using freelancers
- 58% of gig economy freelancers work over 40 hours a week
- 97% of gig workers feel happier than if they were in traditional employment
- 38% of gig workers are between 18-34 years old
- An average gig worker makes $5,120 a month
How Big Is The Gig Economy – Top Statistics
Let’s take a closer look at these top statistics.
1. The Value Of The Gig Economy in 2023 Is Expected To Be $455 Billion (USD)
There are several reasons why the gig economy has become so popular.
One of the most common reasons is a desire to be more in control of time and improve life quality.
This, and the aftereffects of Covid-19, has led to a dramatic increase in the number of people undertaking gigs.
Impressively, that means the gig economy will be worth $455 billion in 2023!
(Statista)
2. 36% Of The US Workforce Are Part Of The Gig Economy
A survey in 2020 identified approximately 59 million US adults as having undertaken gigs.
Some of these were full-time freelancers, others did off gigs to boost their income.
In all, this represents 36% of the US workforce.
That’s an impressive figure and one that is likely to increase in the future.
(Statista)
3. 16% Of US Adults Have Earned Money Through Gigs
While 36% of the US workforce has been involved in the gig economy, an impressive 16% of US adults have earned money by completing gigs at some stage in their adult life.
This covers people undertaking gigs as side hustles and all the retired people looking to make additional money.
Considering the gig economy is still relatively young, we can expect this figure to rise in future years.
In fact, the figure of 16% relates to 2021, it’s estimated to be triple that in 2023.
(Verizon)
4. Gig Workers Make Up 5.7% Of US GDP
The number of gig workers and their earning potential offers a significant benefit to the US economy.
Figures suggest that gig workers have added $1.21 trillion to the American economy.
That’s nearly 6% of US GDP, emphasizing the increasing importance of gig work for economic growth.
It’s highly likely that this figure will grow over the next five years as gig working increases in popularity.
(Statista)
5. Within The Next 12 Months The Gig Economy Is Expected To Be Larger Than The Traditional Economy
In 2020 participation in the gig economy by freelancers grew by 33%.
As the popularity of the gig economy grew, so did the wages received by freelancers.
This growth means it is highly likely that the gig economy will be larger than the traditional economy by the end of 2023.
It’s estimated that 52% of the US workforce will be using the gig economy in some form before the end of the year.
(Statista)
6. 30% Of Fortune 500 Companies Are Using Freelancers
To fully illustrate how popular and important the gig economy is becoming you only need to look at the Fortune 500.
The latest survey shows 30% of Fortune 500 companies are using freelancers within their business. Again, this figure is highly likely to increase.
This is a continuation of a previous pattern. In 2014, just 26 companies relied on freelancers.
Today, there are at least 170 Fortune 500 companies using freelancers.
In fact; there has been an increase of 554% in the number of businesses operating entirely on gig workers in the four years between 2014 and 2018.
(Statista)
7. 58% Of Gig Economy Freelancers Work Over 40 Hours A Week
A lot of people that start gig work are looking for a better work-life balance.
Initiaélly, you may think this means working fewer hours
However, statistics show that 58% of freelancers actually work more than 40 hours a week, these people work between 41-50 hours a week.
The second most popular group is those that work 31-40 hours a week. That’s 28% of freelancers.
Of course, these workers will probably still have more free time than traditional workers as they don’t have to worry about commutes and even lunch breaks.
(Statista)
8. 97% Of Gig Workers Feel Happier Than If They Were In Traditional Employment
A recent survey by Zippia discovered that 97% of freelance contractors feel happier and better off in their gig work as compared to previous traditional jobs.
Interestingly, 94% of freelancers feel they are making a worthwhile contribution to their clients and an impressive 84% of gig workers are happy with their chosen gig as it gives them a sense of purpose.
In other words, even if gig workers are working more hours than a traditional job, they enjoy it more, are less likely to be stressed, and are therefore likely to be healthier.
(Zippia)
9. 38% Of Gig Workers Are between 18-34 Years Old
Gig work can be done by anyone but it’s the younger generation which is truly embracing it. Statistics show that 38% of freelancers are aged between 18-34.
Another 25% of workers are between 35 and 54, with just 11% of freelancers being older than 55.
These facts aren’t surprising as younger people are generally better at adapting to newer technologies.
Of course, as only 16% of gig workers have retirement plans, it’s possible that there will be a higher number of older freelancers in the future.
(statista)
10. An Average Gig Worker Makes $5,120 A Month
According to the ADP survey the average gig worker makes just over five thousand dollars a month.
That’s enough to keep most people happy.
However, the truth is that the average freelancer earns significantly less than this.
Reports show 10% of freelancers earn a substantial rate of pay, the rest earn below the average.
(ADP)
The Gig Economy Of The Future
It’s impossible to predict the future accurately. However, it seems likely that the gig economy will continue its current trend and expand further.
However, the real question is how much demand will there be for gig workers?
It’s certainly true that the number of gig workers has increased rapidly since the global pandemic.
Many people are looking for ways to earn additional funds or to replace traditional jobs.
The result is an excess of freelancers. In short, to land decent gigs you’re going to need to stand out.
It is a two-sided sword. Companies wishing to use freelancers may find there are plenty of options.
But a freelancer doesn’t have to accept any offer they receive.
It is becoming increasingly important to freelancers that they work with reputable companies. In short, the freelancer will be evaluating the business.
The more positive they are about freelancers the more likely it is that freelancers will want to work with them.
Getting Into The Gig Economy
The great news is that anyone can get started in the gig economy.
As you can see from the above gig economy statistics, it’s a large industry and one that is growing quickly.
To get started you’ll need to decide what type of services you wish to offer and then choose a platform to offer it on.
To get started you’ll need to create an account on your chosen platform. They require surprisingly few details.
It’s then simply a case of either waiting to be contacted or sending your profile to any of the people looking for freelancers.
The majority of these platforms operate in multiple countries, increasing the scope of available opportunities.
That makes it easier for you to find the right role.
Simply submit your profile and a brief description of yourself and you may get the gig.
The Advantages And Disadvantages Of The Gig Economy
Many countries across the globe are fighting rising inflation.
The US has an annual inflation target of 2% but currently has inflation rates of 6%. They are not alone.
Combine this with increased economic uncertainty, the ever-rising risk of a global war, and the associated increase in food costs and it’s not surprising people are looking for additional or different sources of income.
Here’s some of the biggest advantages of becoming a gig worker:
Set Your Own Hours
You may still work 40 hours a week but you can choose when to work.
That means, if you’re a morning person, get up and get your work done first thing, you can be done by midday!
Alternatively, do some work and take a break, there is no one to tell you how to handle your work or your day.
Not Normally a Long-Term Commitment
One of the best things about gig work is that you do one job at a time, it’s rare to make a long-term commitment to a business.
In other words, if you don’t like what you’re doing, complete the job and never do it again!
Can Work from Anywhere
Potentially the best part is the ability to work anywhere.
In most cases you’ll need either a few tools or an internet connection.
If that’s all you need there is no limit to where you could complete your work.
Don’t forget, businesses will find it easier to access a large talent pool of people, making the hiring process significantly simpler and more cost-effective.
Of course, there are some disadvantages a potential gig worker should be aware of.
Irregular Work
Doing gig work means that some weeks you have nothing, other times you have more work than you can handle.
Some people will find this approach difficult, especially if you’re accustomed to a regular payslip.
Lack of Benefits
Most employees get benefits, such as healthcare, these are paid for, or partially paid for by the business.
As a gig worker you’ll be working for yourself, you won’t get the benefits and will have to consider how to handle healthcare, retirement, and even sickness.
Taxes Are More Complicated
Filing a tax return is an arduous affair and not something that most gig workers are familiar with undertaking.
It can be frustrating and, if not done properly, can cost you a significant proportion of your earnings.
Summing Up
How big is the gig economy?
It’s large and will soon be bigger than the traditional workplace.
More importantly, the gig economy is expanding year-on-year.
That means the figures we’re looking at today will change further, giving the freelance industry more control over the economy.
At the same time it will help many people to develop a better life-work balance.
If you haven’t already dipped your feet into the gig economy, now may be a good time to try it.
There are plenty of opportunities and this is the workplace of the future.
All you have to do is join it today and become one of the above statistics.