15 Remarkable Gig Economy Facts for 2020

Review these gig economy facts to see where the job market is headed this year.

Published on February 5, 2020

People are opting to work independently, which is now easier than ever because of on-demand work and freelance platforms. There are many companies using contingent workers and a large part of the United States workforce has done some form of contingent labor. We invite you to take a closer look at the rise of the gig economy through these gig economy facts and see why so many people are now working independently.

Here are 15 statistics that show the growth of the gig economy and why gig work has reshaped the job market.

 

#1: Do gig workers help businesses?

83% of small and medium-sized businesses who frequently hire freelancers agree that freelancers/contractors greatly help their business get the job done.

 

#2: How many companies use gig workers?

66% of large sized companies ($5 billion and above) use contingent workers in some area of their business.

 

#3: Why do companies use contingent workers?

62% of large companies use contingent workers to control total labor costs.

 

Utilizing Gig Workers and Independent Contractors
 

#4: How many businesses expect to utilize gig workers this year?

51% of businesses expect they’ll utilize gig workers or independent contractors in 2020, an increase of 12% from the previous year.

 

#5: How do contingent workers help mid-sized companies?

58% of mid-market sized companies ($100 million to $4.9 billion) use contingent workers to complete projects requiring specific expertise/capability beyond their existing workforce.

 

#6: How many people make up the gig economy globally?

Nearly ⅓ of the global workforce has forgone traditional employment and opted for the gig economy.

 

#7: How many gig workers are in the U.S.?

57 million U.S. workers are part of the gig economy.

 

Is gig work a necessity or a choice?
 

#8: Is gig work more of a choice or a necessity?

70% of those who turn to independent work do so by choice rather than necessity.

 

#9: Why do people work independently?

79% of full-time freelancers chose freelance work to have more flexibility in their schedule.

 

#10: What type of work do contingent workers do?

Contingent workers most frequently work within the business services, construction, and education and health industries. 20.6% of those in alternative arrangements work in professional and business services, 17.2% work in construction, and 14.2% work in education and health services.

 

Companies are planning to use a more flexible workforce.
 

#11: How many companies plan to use a flexible workforce?

More than 80% of large corporations plan to substantially increase their use of a flexible workforce in coming years.

 

#12: How extensive is the use of gig workers?

21% of global talent managers state that gig workers make up more than 40% of their workforce.

 

#13: When do people use gig platforms?

Individuals rely on labor platform work when outside income dips or when they are between jobs.

 

#14: How much are companies saving by using gig workers?

43% of companies who are utilizing gig workers are saving at least 20% in labor costs.

 

#15: Do people only use gig platforms in big cities because work is easier to find there?

70% of freelancers are interested in moving somewhere other than a large city, if opportunities were the same.