Top 10 Gig Economy Trends In 2024

The top 10 gig economy trends for 2024 reveal the increasing importance of remote work and how it is set to reshape the world economy.

More than 16% of global organizations have embraced new work platforms, allowing freelance workers to secure gig engagements successfully.

However, the disruptive nature of this emerging trend will result in some companies becoming uncompetitive while other forward-thinking ones thrive.

Top 10 Gig Economy Trends To Watch In 2024

The increased opportunities that remote work opens allow freelancers to sell their services globally, ad hoc.

With the blend of remote and in-office work creating new gig opportunities, technology companies are quickly providing new platforms to explore.

With the resulting virtualization, companies and workers need to adapt quickly if they are to remain relevant and competitive in the marketplace.

Here's our list of the best gig economy trends for 2024:

10. Gig Economy Impact On SMPs

According to the International Federation of Accountants, the economic impact of the gig economy will result in gig workers outnumbering traditional workers by 2027.

This assessment is based on a Mastercard study in 2019, where they predicted the exponential growth we are currently seeing in the gig economy.

The American workforce is one of the biggest benefactors of the gig economy, with Generation Z being the most willing to embrace these changes.

While most gig work globally was centered around transportation in 2019, this is no longer the case as more companies embrace its opportunities.

In 2017, the Bureau of Labor Statistics revealed that 34% of the U.S. workforce, about 55 million Americans, were gig workers.

Not only will small- and medium-sized practices (SMPs) increasingly find themselves needing contract and short-term staff, but their clients will, too.

This will allow SMPs to effortlessly fill expertise gaps without committing to full-time positions, saving time and money on a diverse, skilled workforce.

However, not all gig work may be billable, with increased administrative costs and difficulty retaining knowledge within the practice.

9. Disrupting Traditional Companies

The gig economy is experiencing significant growth, with US companies being forced to deal with many more individuals opting for flexible, temporary, or freelance opportunities.

While this opens the door for traditional employees to embrace diverse income opportunities, it also offers companies a more dynamic and adaptable workforce.

Companies now have much easier access to specialized skills flexibly rather than training staff in a traditional job in-house.

The flip side is that gig workers may face increased competition for gig jobs while lacking the traditional job security and benefits associated with traditional employees.

Over the past decade, more and more companies have grappled with the challenges inherent in efficiently managing remote and diverse teams.

Whole industries are experiencing the effects of the gig economy, with the global taxi industry, for instance, affected by the introduction of ride-hailing applications.

Companies need to invest in technology to access gig work platforms, making it easier for freelancers to connect with job opportunities.

This enhances the efficiency of connecting freelancers with job opportunities and allows companies to tap into a global talent pool.

8. The Emergence of More Specialized Gig Platforms

As the gig economy expands and the talent pool increases, more specialized gig platforms are required to keep pace with market demand.

This rapid adoption of gig-style work has seen the total number of online gig work platforms increase to more than 545 globally.

The World Bank has identified 186 countries where gig workers and clients are located, with the fastest growth rates in developing countries.

In Sub-Saharan Africa, job postings on the largest digital platforms grew by 130 percent, offering primary job opportunities to a wide range of individuals.

Three-quarters of these platforms are regional or local, emphasizing the significance of the gig economy for developing countries' citizens' primary source of income.

Online gig work is seen as a path out of poverty for people in low- and middle-income countries using a cell phone and internet connection.

There is thus a massive incentive for investment in digital infrastructure and collaboration with digital platforms for worker support and training.

This is one of the gig economy trends that offers a way to increase informal worker options, supporting efforts to provide their primary income.

7. Increasing Automation With More Gig Applications

As gig applications become increasingly more automated, companies see improved efficiency and productivity, reducing manual effort.

For companies like Uber and Lyft, automated algorithms help to optimize gig worker routes, leading to quicker and more cost-effective rides.

Automation also results in significant cost savings for gig platforms by minimizing the need for human intervention when providing an on-demand workforce.

Companies like TaskRabbit and UpWork can reduce the operational costs associated with manually coordinating gig jobs by integrating automated task assignment systems.

By improving algorithms on platforms like Upwork, they can match freelancers with suitable job opportunities and projects, enhancing user satisfaction.

Companies can make better data-driven decisions, with automation allowing gig platforms to collect and analyze large amounts of data efficiently.

This data is then used to make more informed decisions, such as surge pricing on platforms like Instacart during peak demand periods.

Automation can be a double-edged sword, however, as scalability is achieved without a proportional increase in the workforce, potentially threatening jobs.

The introduction of unintended bias into automation processes has seen companies like Airbnb face criticism of their automated booking processes.

6. Average Gig Worker Pay Is Lower Than For Traditional Employees

With the introduction of a level playing field in the hiring processes of the global gig economy, employees in first-world countries have struggled with competition.

Independent workers in third-world countries are prepared to work for far lower wages than their first-world counterparts, leading to a race to the bottom.

Hourly rates have tumbled as independent workers compete on price rather than quality and efficiency, threatening job security for some individuals.

Unencumbered by regional legislation or taxes, gig workers who leave permanent jobs for the lucrative gig economy face lower real wages.

The problem of price cutting is exacerbated by the introduction of artificial intelligence, which has successfully replaced hiring gig workers from overseas.

However, these gig economy trends have also created an opportunity for highly skilled and adaptable gig workers who offer high-quality services.

While traditional employees are not going anywhere anytime soon, a definite trend toward lower wages and salaries will impact job satisfaction soon.

5. Greater Social Interaction Among Gig Workers

A big part of worker satisfaction revolves around the community-building aspects of work and how it fosters a sense of self and connectedness.

In a digital platform work environment, where individuals may not physically share a workspace, creating a virtual community can enhance job satisfaction.

Full-time employees share their workspace physically and can share their experiences and accomplishments, receiving recognition from peers who are lost in a virtual workspace.

Collaboration tools and platforms can contribute to increased engagement among gig workers, helping to communicate and share information through mutual support.

Technology that helps gig workers feel more connected to their work, and the broader gig economy community mimics full-time employment conditions.

Developing these technological tools increases engagement and higher job satisfaction, resulting in greater productivity and improved life-work balance.

In a gig economy where individuals may work on diverse projects, collaborating with co-workers allows for the exchange of skills and expertise.

This continuous learning and skill enhancement contribute to job satisfaction as workers feel they are growing professionally and expanding their abilities.

4. Gig Workers Are Happier Than Traditional Workers

Gig workers choose jobs in the gig economy for a variety of reasons, but mainly because it offers them a happier work experience than traditional jobs.

They often enjoy greater flexibility regarding when and where they work, helping them balance their responsibilities better.

Gig workers can choose their projects, clients, and work schedules, leading to greater independence and alignment with their skills, preferences, and lifestyles.

This is one of the gig economy trends most evident with gig workers who take on diverse projects, keeping them engaged and interested.

These gig workers earn substantially more than traditional workers, with the potential to set their own rates and increase their earnings.

A recent UpWork study reveals that the gig workforce enters this type of work to earn more money.

They report being happier in their job due to the greater control they exercise over the type of work they’re doing.

A large part of the attraction of gig work is being able to choose their location and pursue more meaningful jobs.

3. Increasing Government Regulation Of Gig Workers

Independent contractors and contingent workers have recently come under the spotlight due to concerns over fair wages, benefits, and better working conditions.

This is one of the gig economy trends that is set to have the most impact on gig workers' compensation as well as their rights and protections.

It will also help improve the public perception of gig work and the companies that make up the bulk of the work opportunities.

However, stricter regulations will also increase operational costs for companies and reduce their flexibility in hiring due to regulatory constraints.

The ability to balance regulations protecting workers without stifling innovation is a challenge that must be met to ensure the future of the gig economy.

2. Technology Is Driving The Gig Economy

Technology has enabled the creation of gig platforms and marketplaces like Uber, Airbnb, and UpWork, driving its growth and ensuring its future.

These gig apps provide easily accessible and user-friendly mobile connections, channeling a significant amount of gig work to independent workers seeking employment opportunities.

Uber, for example, has contributed billions to the economy and emphasizes that gig workers are attracted to the platform due to its flexibility.

Using high-speed internet, video conferencing, and project management tools have made remote work and telecommuting more feasible for gig workers.

Technology has also played a pivotal role in making payment processing more reliable and efficient, moving away from in-person cash payments.

Platforms like Zelle, PayPal, and Venmo enable quick transactions without traditional invoicing and delays, crucial for gig workers unable to relocate for temporary work.

Technology facilitates the scalability of gig economy platforms, allowing companies to reach a broader audience while attracting greater numbers of gig workers.

The ease of access to gigs through mobile apps and online platforms is a key contributor to the growth of the gig economy.

1. The Gig Economy Is Growing

The gig economy and gig workforce are growing, with huge increases in the number of workers moving from traditional employment into freelancing and contract work.

With an estimated increase of 73.3 million freelancers in 2023 to a projected 76.4 million in 2024, the gig economy is experiencing an unprecedented boom.

According to data obtained from Statista, gig workers may soon outnumber their traditional counterparts in various sectors, enjoying increased happiness and enhanced job security.

A significant shift is underway, with 40% of global executives foreseeing an uptick in freelancers in organizations, reflecting a fundamental change in how businesses operate.

Projections indicate that by 2027, a staggering 60% of the U.S. workforce is predicted to be independent, marking a monumental shift in employment trends.

Deloitte Consulting and Upwork further predict that gig workers, constituting the "alternative workforce," will surpass traditional employees by this time.

Reflecting this seismic change, 80% of large U.S. companies plan to increase their reliance on a flexible workforce, embracing more non-traditional workers.

Summary

The gig economy is here to stay, with the main drivers being its growth in traditional companies and the innovative technology platforms connecting workers.

When looking at gig economy statistics, it is plain that gig economy workers are unhappy with traditional jobs and see independent work as the answer.

With the recent pandemic boosting gig economy growth, many independent workers have ditched full-time employment in favor of remote job opportunities.