These gig economy statistics will help your company prepare for the future of work.
The gig economy is one of the most important workforce transformations. If digital platform work continues to expand so rapidly, it can overtake the traditional job market.
This has many implications for businesses that need to adapt to the new reality. Thus, get ready to hire more platform workers in 2023 and beyond.
In this article you’ll learn about:
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Click the links below to go directly to the stats of your interest:
Gig economy statistics: how big is the gig economy?
Gig economy statistics: demographics and salary-related stats
Gig economy statistics: benefits of platform work
Gig economy statistics: technology in digital platform work
Gig economy statistics: job security and healthcare
Gig economy statistics: trends and the future
The gig economy allows companies to hire independent workers for short-term commitments: freelancers, independent contractors, part-time hires, project-based workers or other temporary workers.
It’s also called digital platform work since digital platforms connect freelancers/gig workers with potential clients.
Uber, the largest ride sharing company in the world, is a good example of a company employing gig workers (drivers).
Other examples of gig economy jobs involve TaskRabbit workers, on-call workers, seasonal workers, Airbnb landlords, online marketplace sellers, influencers, and consultants.
Top gig economy platforms include: Upwork, Fiverr, PeoplePerHour, Toptal , Uber, Glovo or Bolt.
The gig economy is getting bigger. In America, around a third of the working population is already in some gig capacity. The trend is going strong in the post-pandemic world.
In 2020, the gig economy experienced significant increases, mainly in response to COVID-19. This was the effect of significant job losses, but also the new independent work opportunities the pandemic created, e.g. virtual assistants in digital customer experience.
The number of gig workers has gone up since the pandemic hit.
The gig economy is expected to keep rising in uncertain times. Considering the recent layoffs, no wonder more and more workers are on the lookout for alternative incomes.
Additionally, people are increasingly prioritizing lifestyle over earnings, which makes freelancing an attractive option.
From the employee perspective, the gig economy:
From the employer perspective, the gig economy:
Additionally, using the alternative, on-demand workforce is gaining popularity during an economic recession. Many companies are opening up to unconventional ways of doing business to cut costs in uncertain times.
The following gig economy stats will help you better understand:
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The spreading of the gig economy is a worldwide phenomenon in both developed and developing countries.
So how big is the gig economy? The stats below will help you better understand the overall size of the gig economy.
But bear in mind that it's difficult to estimate exactly the size of digital platform work, especially when freelancers work in addition to their main job.
The gig economy generates $204 billion in gross volume (globally) with transportation-based services comprising 58%.
Mastercard’s survey
Who exactly are gig workers and how much do they earn on average?
Check out these stats:
Millennials account for 33% of all freelancers, fueling the expansion of independent work.
MBO Partners
What are the benefits of the gig economy? Who benefits most from this employment trend?
The gig economy benefits both employers (businesses) and employees by making work more adaptable to the needs of the moment and the demand for flexible lifestyles.
The stats below will give you a better idea of how platform work benefits both workers and companies.
The digital platform economy has many benefits for businesses, especially for economic reasons.
Consider these stats:
Using freelancers instead of full-time employees (an on-demand model) often means better efficiency, productivity and lower costs.
The digital platform economy also benefits employees. The majority of gig workers enjoy the independence, flexibility and job variety this type of employment allows. In the Great Resignation and quiet quitting era, work flexibility is becoming more and more essential for employees.
Many gig workers report higher happiness and satisfaction levels with their work compared to people in traditional full-time employment, even if they have to work more and/or earn lower salaries (BCG Henderson).
According to BambooHR’s survey, the top reasons why people leave their jobs include dissatisfaction, mental health, poor pay and unethical leadership.
Interestingly, some people say quiet quitting is a trendy new name for worker dissatisfaction and lack of engagement.
Consider these stats:
Independent workers who switched to the platform economy by choice are the most satisfied group within the workforce.
McKinsey
As a result, the majority of independent workers want to stay independent.
The impact of technology is significant in the gig economy. Above all, thanks to technology, “gigs” have become easily accessible. As a result, freelancing, which used to be a side hustle, has turned into a trillion-dollar industry with millions of participants.
There’s a wide range of gig work apps and freelance platforms, such as Freelancing, Upwork or Fiverr. Online talent networks are growing quickly and are employing hundreds of millions of people around the world.
Consider these stats:
The growth of the gig economy brings not only opportunities, but also challenges.
For example, consider the issue of job security and medical coverage. The self-employed lifestyle doesn’t come ready-made with benefits such as a healthcare plan. However, in the USA, 84% of workers cite health insurance as the benefit they care about most, followed by sick time off (83%).
According to Brodmin:
From a wider social perspective, the gig economy can resemble a modern servant economy with underprivileged social groups that have to choose between flexibility and stability. This may have long-term consequences for both employees and employers.
For this reason, the EU and other countries are planning to better regulate digital platform work and improve the protection of gig workers.
The gig economy is one of the most important transformations in the world of work. That’s why we need legal clarity, transparency, and sufficient consistency.
Piotr Smolen, CEO at Symmetrical
Technology, automated solutions and digital apps can also help centralize and optimize many processes.
The future of digital platform work looks bright. For example, the gig economy is expanding 3x faster than the total US workforce.
According to some projections:
Gig workers may outnumber the traditional workforce in many sectors.
The fact is that in the post-pandemic world, more and more job seekers will be turning to digital platform work. As most gig workers seem to be happy working independently, gone are the days of working 9-to-5 in a cradle-to-grave job.
Consider these stats:
80% of large US companies plan to increase their reliance on a flexible workforce and more non-traditional workers in the coming years.
Intuit
Thus, independent work has big growth potential.
Businesses can expect some rapid changes and will need the right technology to meet the new gig reality.
One thing is certain: companies employing gig workers will need software and digital apps that simplify complex processes. This is the future of the gig economy.
Consider the Uber app. It delivers a data-driven unified experience and shows drivers what goals they need to accomplish (and how). This model shows the importance of simplicity in gig work.
Automated solutions will be essential for employers. Having the right technology and software will be extra important for HR, payroll and finance teams.
Piotr Smolen, CEO at Symmetrical
Consider payroll: one of the most important aspects for HR and finance departments to deal with when hiring gig workers. Flexible work, high-volume recruitment and global hiring opportunities mean much more complex and volatile hiring and payroll operations.
Unfortunately, most payroll solutions are not ready for this change. Therefore, the Symmetrical payroll solution allows you to hire at scale and pay people on time by automating your payroll.
Download our FREE guide to avoid costly payroll mistakes, assess your payroll and identify areas for improvement!
The gig economy is changing the contemporary business landscape. This means that your company must be ready to welcome more platform workers.
The gig economy is growing fast. So don’t wait to prepare your business for the future. Having the right technology and software will help you attract the right gig workers to your organization (and keep them).
Piotr Smolen, CEO at Symmetrical
Is your payroll solution ready for the gig economy?
Symmetrical enables fast-paced companies to onboard at scale and run their payroll invisibly. To run your payroll hassle-free, on auto-pilot, contact our experts to learn more!
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