Over the previous decade, the gig economy has seen a huge spike in demand, especially over the last three years as Covid-19 shut down thousands of businesses. Many of those left without a job turned to remote work, joining the ever-growing gig economy and reaping the benefits of working from home.
Setting their own hours, choosing what work they want to complete, and all from the comfort of their own home appeals to many people, and why wouldn’t it? After all, a 9-5 job can be an intense drain on a person, keeping them from doing what they love. To learn more about how the gig economy has exploded recently, check out these 2023 gig economy statistics and facts.
Some Fast Facts About the Gig Economy
- Fifty-nine million Americans work as freelancers, making up 36% of the entire workforce, and that continues to grow each year.
- When it comes to where they live, 43% of freelancers live in urban areas.
- Most freelancers have chosen their current lifestyle, with around 70% of all freelancers choosing to freelance.
- 1 in 4 workers in 40% of all corporations is currently a freelance worker hired to work remotely.
- The United States provides most of the world’s gig economy market, but countries like India are rapidly growing.
- Web and graphic design see a large portion of all freelancers, with 30% of freelancers working in those fields in some manner.
- 36% of freelancers freelance for their full-time job.
The Gig Economy Is Growing Rapidly
One of the fastest-growing job options in the world, the gig economy is expected to increase by a compound annual growth rate of 15%. By 2023, that will put the total number of gig workers to around 78 million, though it will likely grow even faster due to the recent pandemic and other political events. This will mean over 52% of America’s entire workforce will be working remotely as freelancers by 2023.
Millennials are Speardriving the Gig Economy
Millennials and Gen Z have been at the forefront of most change in recent times, and the gig economy is no different. Coming out of college with degrees and student debt, millennials are realizing their degrees are of no help in an economy where wages have been stagnant for years, and inflation is running rampant.
They are using the skills they learned in college and getting their degrees to pursue remote jobs that pay better and have less competition. On the other hand, Gen Z is starting to skip college altogether and jump straight into the gig economy, realizing they do not need a college degree to become successful freelancers.
Work-Life Balance is Important to Freelancers
When it comes to the main reasons why more people are becoming freelancers, work-life balance is the most commonly cited one, with over 70% of freelancers stating this as their primary reason for quitting their full-time job. A 9-5 job does not offer many opportunities to have a healthy work-life balance while working remotely allows you to set your own hours and decide how much or how little you want to work.
Employer-Provided Benefits are Mostly Nonexistent
A downfall to the freelancer lifestyle is that most freelancers do not have access to employer-provided benefits, with 54% of all freelancers left to cover their own benefits such as insurance. This makes it much more difficult for freelancers to have access to life, dental, and health insurance, especially if they are barely making enough to pay their monthly expenses.
The USA Economy Loves the Gig Economy
When it comes to the USA economy, it is making a fair amount of money from the gig economy. In total, freelancers provided $1.21 trillion to the USA economy in 2020, making up 5.7% of the US GDP. And as the years go by, they continue to provide more to the economy as it becomes more popular.
Freelancers Actually Tend to Work More
While 70% of freelancers choose to freelance for a better work-life balance, they actually tend to work more than 40 hours a week. 41-50 hours a week is the most common workweek for freelancers, with 28% of freelancers reporting they work 31-40 hours a week.