Here’s your freelance graphic designer logging off at 2 p.m. on a Tuesday. There’s your ride-share driver picking up their third passenger before noon. And somewhere else, a consultant is wrapping up a project for a client they’ve never met in person.
What connects all of them? They’re not traditional employees—they’re part of what we call the gig economy.
The gig economy is where people work on short-term projects, freelance gigs, or as independent contractors instead of holding traditional full-time jobs. Some work through apps like Uber or DoorDash. Others take on consulting projects or freelance writing assignments. The common thread? Flexibility.
People choose gig work because they want control over their schedules, the freedom to work from anywhere, and the ability to pick their projects. For many, it’s not just a side hustle—it’s their primary income source.
But here’s where it gets interesting for business owners like you. This shift toward gig work isn’t just changing how people think about careers. It’s reshaping how companies build teams, especially when you’re looking to expand globally.
Because when that perfect freelancer for your next project happens to live in Berlin, or when the consultant you need is based in São Paulo, you’re not just hiring gig workers anymore—you’re navigating international employment. And that’s where things get complex fast.
The gig economy statistics we’re about to dive into tell a story that goes beyond flexible work arrangements. They reveal opportunities for businesses ready to think differently about building global teams.
The gig economy by the numbers
By definition, the gig economy is a system of temporary, short-term, or contract positions for which companies employ freelancers or contractors.
On the move. 58% of global gig economy revenue comes from ride-sharing or transportation services like Uber or Lyft in North America and Ola or Go-Jek in the Asia Pacific region.
Source: Mastercard
Padding income. 56% of gig economy workers say they take gig jobs to earn money on top of their main source of income.
Source: Pew Research Center
Releasing tension. The highest-paying gig economy job in the United States is massage therapy—paying an average $27.34 an hour.
Source: AppJobs
A growing market. 59 million Americans freelance—that’s 36% of the total American workforce.
Source: Upwork
By choice. 70% of independent contractors said they are working as contractors by choice.
Source: ADP
City living. 43% of freelancers live in urban areas.
Source: Upwork
The size of the gig economy
The gig economy is large—and growing every day. The number of global gig workers is expected to rise by more than 30 million people in the next year. More workers are starting to see the benefits and flexibility of contracting and independent work.
16% of Americans have completed a job via an online gig platform.
Source: Pew Research Center
Data shows that the global gig economy now accounts for up to 12% of the labor market.
Source: World Bank
More than one-third of the U.S. workforce is now engaged in some form of gig work, projected to rise to half by 2025.
Source: Work Life
At 40% of organizations, one in four workers on payroll is a gig worker.
Source: ADP
Florida has the highest concentration of gig workers, with 22% of workers in the state doing gig work—this is followed by California (20%), Texas (18%), and Illinois (18%).
Source: ADP
Global gig economy statistics
Though the U.S. has one of the biggest markets and customer bases for freelance work, gig work is popular across the globe. The global freelance market is expected to continue its rapid growth—at a compound annual rate of 15%.
44% of the gig economy gross volume comes from customers in the U.S.
88% of the global gig economy gross volume comes from ride-sharing platforms like Uber and asset-sharing platforms like Airbnb.
Source: Mastercard
The U.S. has the highest global market for gig workers, but India, Indonesia, Australia, and Brazil are rapidly growing, strong markets.
Source: Mastercard
Sales and business development displayed the highest year-over-year growth as a freelance skill, with a 54% increase, followed by data entry at 47%, accounting for 45%, and 3D animation at 44%.
Source: Upwork
Almost 15% of workers in England and Wales complete a gig job at least once per week.
Source: TUC
The global freelance market is expected to grow at a compound annual growth rate (CAGR) of 15% through 2026.
Source: DDIY
The AI sector, particularly generative AI, saw a 600% growth in the number of weekly job posts seeking generative AI skills in 2023.
Source: Upwork
20% of full-time independent workers based in the U.S. have customers outside of the U.S.
Source: MBO Partners
50% of global freelance workers are providing skilled work like computer programming, counseling, IT work, or marketing.
Source: Upwork
Gig economy employee statistics
There is no one-size-fits-all for a gig worker. As there are many different industries and sectors that employ gig workers, there are many different types of people who take on the work. These employees report being happy and fulfilled in their gig jobs.
People with lower incomes are the most likely to do jobs on gig economy platforms.
49% of gig workers said the ability to set their own hours is the most important factor when working in the gig economy.
Source: Pew Research Center
30% of freelancers work in the web and graphic design field.
Source: Payoneer
Only 40% of American gig economy workers have access to medical insurance.
Source: Statista
57% of sole proprietors in the U.S. work in five sectors: professional services, repair and personal services, construction, administrative services, and retail.
Source: Intuit
44% of freelancers report that they are also caregivers, and 33% report having a disability present in their household.
Source: Upwork
36% of freelancers do it as a full-time job.
Source: Upwork
20% of gig workers are over the age of 55.
Source: ADP
Only 33% of full-time independent workers said they worry about securing future jobs.
Source: MBO Partners
32% of freelancers started freelancing while or just after completing their education, and 22% started freelancing after being laid off from a job.
Source: Upwork
84% of freelancers are living their preferred lifestyle, as opposed to 54% of traditional employees.
Source: Upwork
Gig economy earnings and rates
How much professionals earn in the gig economy varies widely based on factors like age, experience, and skill set. Let’s take a closer look at some money-making figures that shed light on the current financial landscape of gig work.
About a quarter of Americans (24%) ages 18 and up earn income by working in the gig economy.
Source: Edison Research
70% of freelancers are under 35, 21% are under 25, and 1% are 65 or older.
Source: TeamStage
$21 per hour is the average hourly rate that freelancers charge globally.
Source: Payoneer
Age and experience matter. Gig professionals 55–64 in age earn $36 per hour on average (more than their younger counterparts).
Source: TeamStage
Web & graphic design is the most popular skill set among freelancers, followed by content writing, programming, and translation.
Source: Payoneer
More than half of professionals in the gig economy say they work harder for their earnings than they would in traditional job roles.
Source: Edison Research
Gig economy financial statistics
While some may assume that gig workers don’t earn as much as those employed on a full-time basis, there is money to be made in the gig economy. In fact, 1 and 5 independent contractors rake in more than $100,000 per year.
Gig workers in the recreation industry make an average of $7,000 per month—$2,000 more than traditional employees in the industry.
The average gig worker makes $5,120 per month.
Source: ADP
63% of gig workers said they prefer a flexible work schedule to a bigger salary.
Source: MBO Partners
The average gig worker in the United States makes $69,000 per year—higher than the median U.S. income of $59,000.
Source: MBO Partners
75% of new freelancers said they are taking on freelance work to ensure financial stability during a recession.
Source: Upwork
20% of full-time independent contractors earn $100,000 per year or more as of 2023.
Source: MBO Partners
59% of freelancers believe they are making more freelancing than they would in a traditional role.
Source: Upwork
The future of the gig economy
The future of the gig economy looks bright. Workers think so, too. 86% of freelancers said they think the best days for their industry are yet to come, signaling that many are confident the gig economy will continue to boom.
The gig economy is expected to be valued at $556 billion by 2024.
Source: Business Research Insights
86% of freelancers think that the best days for freelancers are yet to come.
Source: Upwork
By the end of 2023, it’s projected that 52% of workers will have spent some of their careers as independent workers.
Source: MBO Partners
55% of full-time independent workers said automation will not impact their job stability.
Source: MBO Partners
48% of new freelancers said they view freelancing as a long-term career choice.
Source: Upwork
80% of large corporations plan to increase their use of flexible workers in the coming years.
Source: Intuit
Gig economy statistics analysis
The gig economy is large and vast. The answer to the question “What is a gig job?” looks different for everyone. For some, gig work means turning their car into a taxi service. For others, it means taking on freelance software engineering work. No matter the industry, though, one thing is certain: The gig economy is growing.
By the end of next year, the number of global gig workers is expected to grow by almost 30 million people (that’s just about the entire population of Venezuela). And currently, one in four employees at 40% of global organizations is employed on a contract basis.
There is also money to be made in gigs. 21% of independent contractors earn more than $100,000 per year. That must be why gig workers range in age from those in college to people reaching retirement age—many of those working in the gig economy are doing so by choice, not because they can’t land a traditional job.
As the job market is ever-evolving into a focus on new work models like asynchronous work, remote work, and a four-day work week, we expect to see the gig economy continue to flourish as an option for those who don’t want to sign an offer letter.
Benefits & challenges of the gig economy
The gig economy is reshaping the world’s work dynamics, offering both opportunities and hurdles for businesses and professionals alike.
Flexibility and scalability
One of the most highly sought-after advantages is its flexibility. Businesses can scale their workforce up or down quickly based on demand. Teams can access specialized skills for specific projects without the long-term commitments of traditional employment.
However, this flexibility comes with its own set of challenges. Ensuring consistent quality across different freelancers or contractors can be complex, and there may be less loyalty or long-term commitment from gig workers.
Cost efficiency vs. investment in talent
Gig work can reduce overhead costs for businesses. A company can minimize expenses associated with full-time employees, such as benefits, office space, and equipment.
On the flip side, this cost-saving approach may lead to a need for more investment in talent development. Without the stability of traditional employment, gig workers may miss out on training opportunities and career growth within the organization.
Access to global talent vs. management complexity
The gig economy opens doors to a global talent pool, allowing businesses to find the best person for the job regardless of location. This can lead to increased innovation and efficiency as the company taps into a wider range of expertise.
Conversely, managing a distributed, global workforce comes with its own set of challenges. Time zone differences, cultural nuances, and communication barriers can complicate project management and team cohesion.
Legal and regulatory considerations
As teams begin to engage with freelancers, it’s crucial to chart the legal landscape carefully. Classifying workers as independent contractors versus employees is a contentious issue in many jurisdictions, with potential financial and legal consequences for misclassification.
Tips for thriving in the gig economy
Whether you’re a business working with gig workers or someone thinking about going freelance, here’s how to succeed in this new world of work:
- Embrace flexibility, but maintain structure. Setting regular working hours and adhering to them as much as possible can boost productivity and mental well-being.
- Diversify skills or talent pools. For businesses, this means building a diverse network of freelancers. For freelancers, it’s about developing a range of marketable skills to stay competitive.
- Prioritize clear communication. In a remote work environment, overcommunication is better than undercommunication. Be proactive in reaching out, setting expectations, and providing feedback.
- Grow a digital presence. An online profile is often the first impression in the gig world. Professionals and businesses should keep portfolios, LinkedIn profiles, or company websites up-to-date and reflective of their best work.
- Build a strong network. Networking isn’t just for traditional careers. Both businesses and freelancers should cultivate relationships with industry professionals, clients, and other freelancers. These connections can forge new opportunities and collaborations.
- Stay on top of industry trends. The gig economy is constantly evolving. Staying informed about new platforms, tools, and market demands to stay ahead of the curve.
- Manage finances wisely. For gig workers, this means budgeting for inconsistent income and setting aside money for taxes. For businesses, it’s about balancing the cost-effectiveness of gig work with investment in core team members.
- Prioritize work-life balance. It’s easy to blur the lines between work and personal life in the gig economy. Setting boundaries and making time for self-care helps avoid burnout.
- Embrace continuous learning. Whether it’s upskilling or providing learning opportunities for gig workers, continuous education is key to long-term success in this dynamic environment.
- Don’t underestimate the power of soft skills. While technical skills are important, soft skills like adaptability, time management, and interpersonal communication are crucial in the gig economy.
The gig economy rewards those who embrace its core strengths: the freedom to choose your work, the ability to specialize in what you do best, and the opportunity to build something on your own terms. Success comes down to being strategic about the flexibility it offers, staying focused on delivering real value, and being willing to adapt as the landscape evolves.
Because whether you’re hiring gig workers or becoming one, the future of work is already here—it’s just getting started.
Gig economy FAQs
Below are answers to common questions about the gig economy.
Why is it called the gig economy?
The term “gig economy” stems from the nature of work within this system, where individuals typically engage in short-term, temporary positions, called “gigs.”
The phrase “It’s a good gig” relates closely to the origin of this term. In this context, each piece of work is considered an individual gig or job. The gig economy has also been called the sharing economy, collaborative economy, or platform economy because of its use of apps like Uber or Airbnb.
Is the gig economy growing?
The gig economy is growing. As more customers and companies hire freelance or contractors, more workers are able to find lucrative gig work. The global gig economy is expected to be valued at $455 billion by the end of next year. And the freelance market alone is expected to grow at a CAGR of 15% year over year through 2026.
What are the pros and cons of the gig economy?
Pros:
- Workers can set their own hours and work when it’s convenient
- Companies gain access to the global pool of talented gig workers looking for work
- Many jobs are short-term and don’t come with a long commitment
- Many gig workers are able to work remotely or from anywhere, providing a better work-life balance
Cons:
- Workers may not receive a steady stream of business, which could cause financial stress if gig work is their primary source of income
- Gig workers may not have access to benefits that traditional jobs provide, like insurance or paid time off
- Taxes can be a headache for gig workers
The gig economy provides many benefits, but the unpredictability of the market may make it inaccessible for some workers. Let’s look at some prominent gig economy pros and cons.
How big is the U.K. gig Economy?
The gig economy in the U.K. is huge—and it’s only getting bigger. As of 2021, almost 15% of workers in England and Wales completed a gig job at least once per week, according to TUC. In addition, 23% of workers in those countries have completed a gig job at some point. From 2016 to 2021, the number of workers who performed remote online digital tasks in the U.K. more than doubled—going from 4.9% to 11.9%.
Welcome to the future of work
The gig economy isn’t just changing how people work—it’s rewriting the rules for how companies build teams. You can now access that perfect developer in Prague or that brilliant designer in Buenos Aires without the traditional barriers of international hiring.
But with great opportunity comes great complexity. That long-term contractor relationship might look like employment to local authorities. Those multiple freelancers across different countries could create a compliance maze that keeps your legal team up at night.
You shouldn’t have to choose between accessing global talent and staying compliant.
That’s where Pebl comes in. When that amazing contractor becomes essential to your team and you want to convert them to a full-time employee, we handle the complexity. Our Contractor Conversion service lets you transition gig workers to permanent team members in 185+ countries without setting up entities or navigating foreign employment law alone.
The gig economy opened the door to global talent. We make sure you can walk through it confidently.
Ready to turn your best gig relationships into lasting team members? Let’s talk about how Pebl makes international hiring straightforward.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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