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According to the latest research by Statista, approx. 86.5 million people will enroll in the gig economy as gig workers or freelancing in the United States by 2027. Since the major financial crisis of 2008 and the latest COVID-19 pandemic, the “gig economy” has become a trendy and hot market topic, especially among youngsters.
The gig economy is a flexible way of working where people opt for temporary jobs and get paid for completing their tasks. Rather than working for an employer, gig workers are their bosses. However, there are many challenges, like lack of job security and benefits, and you might be curious about the future of the gig economy.
Key Characteristics of the Gig Economy (United States)
- Over 50% of the US workforce is likely to participate in the gig economy by 2027.
- The gig economy is expanding 3x faster than the total US workforce.
- Persons aged 18-34 are more likely to work within the gig economy.
- The global gig economy generates $204 billion in gross volume.
- 76% of gig workers say they are very satisfied with their choice.
- 82% of gig workers say they are happier working on their own.
- Nearly a third of US workers have a gig job as a primary engagement.
- 55% have started working independently for extra earnings on the side.
- The gig economy is expected to reach $467.4 billion in 2025
What Is the Gig Economy?
The gig economy is a type of labour market with short-term, contracted, or freelance work — as opposed to permanent in-house jobs. The word “gig” is borrowed from the world of music, where it describes a job that is either temporary or short-term.
The gig economy has long been nothing new. People have been doing ad-hoc jobs (temp or freelance) for centuries. What has changed is that technology is now allowing broader, more adaptable and on-demand work options that can benefit firms and individuals alike.
Over a third of the US workforce does some form of gig work; as many as 162 million American and European workers are freelancers. Locally, Statistics SA’s employment outlook revealed that temporary employment increased from 2.6 million in 2017 to 3.9 million in 2018.
Businesses are also taking note of this growing trend, with freelancing website Upwork reporting that 59% of US businesses are now using some flexible workforce—whether that be staff working remotely or freelancers.
The Gig Economy Predictions For 2025
- Rise of Specialized Gig Platforms: There will be more gig platforms by 2025 in niche areas and skills beyond very well-deployed players such as Uber and Fiverr.
- AI Adoption: By 2025, artificial intelligence and automation start to take care of routine tasks and assist gig workers to spend more time on other services that need active human intervention.
- Stricter Regulation: The gig economy’s explosive growth will lead the government to implement more and stronger regulatory measures. These rules primarily protect gig workers’ rights, including access to benefits and fair labour practices.
- Emergence of New Microbusinesses: An increasing number of gig workers will shift away from episodic gigs towards establishing new microbusinesses and availing different platforms to market and operate their microbusinesses.
- Decentralization as an accepted attitude: More organizations are adopting this model, and its participants, traditionally unique, feel attracted to do so, too. In 2025, gig workers will be hired alongside the full-time staff to have more flexibility in work and access to specialized talent.
- Better Benefits for Gig Workers: Gig and freelancers will be eligible for new and dedicated benefits like traditional workers. That includes health insurance and retirement savings plans for gig economy employees.
- Subscription Models Trending: It predicted that in 2025, gig platforms will transition to subscription-based models. These models offer gig workers and hirers more enhanced services, such as dedicated and premium gigs or other tools.
- Enhanced Skills and Modern Reputation Systems: Current and new gig platforms will opt for advanced verification systems to increase trust and ensure quality. These systems may use blockchain technology and Artificial Intelligence (AI) to authenticate workers’ skills and experience or collect feedback from clients and peers.
- Environmentally Friendly Approach: By 2025, the gig economy will impose policies to focus more on sustainability and reduce its environmental footprint. They achieve this by encouraging low-carbon transportation to gig workers, especially riders, or opting for remote work.
- People Choose Gig Work as a Career: Gig work will be seen as a legitimate and long-term career choice like traditional work rather than a temporary stopgap. Educational institutions step forward and offer specialized courses and certifications mainly focused on developing skills for various gig economy sectors.
Conclusion: The Gig Economy Always Stay and Improving
With digitalization increment, our relationship with work will continue changing more declined toward flexibility. Traditional employees, too, want more to say and need freedom in aspects like how they work, who they work, and how they schedule their lives.
So, when it comes to the gig economy, big businesses and the government will need to learn in 2025 to embrace gig workers. They have to collaborate with gig workers and introduce more friendly benefits and policies for gig economy workers.
Moreover, if you are working in the gig economy as a gig worker or freelance and facing the biggest challenges of finance management, no worries now! GigsPayday is here for hardworking gig workers, freelancers, 1099 workers, independent contractors, rideshare drivers, and self-employed. Apply today and get up to $5k in your account within 10 minutes*.
