What Does the Gig Economy Look Like in 2021?

What we know today as the gig economy — the section of the labor market consisting of short-term contracts and freelance work — has exploded over the past several years. Last year alone it grew by 33%, expanding more than eight times faster than the U.S. economy as a whole. Last year, two million Americans tried gig work for the first time, no doubt in part because of the COVID-19 pandemic, and at the time, 34% of the US workers were involved in the gig economy.

Now, thanks to a new report from Pew Research Center, we have a better idea of what the state of the gig economy looks like now. According to the report, based on a survey of 10,348 U.S. adults conducted in August 2021, the majority of current or recent gig workers, which Pew defines as individuals who have earned money on online gig platforms in the past 12 months, say the platforms they work for are fair to them in several ways. About 72% of these workers say gig work platforms have been somewhat or very fair in terms of how their jobs are assigned, and 64% consider the companies fair when it comes to pay.

Benefits

Though gig workers mostly see their jobs in a positive light, forty-six percent of current or recent gig workers view the companies they work for as somewhat or very unfair when it comes to their benefits. Benefits are a contentious element of gig work; workers on these platforms tend to be classified as independent contractors, which means they don’t receive legal protections, job security, or benefits such as health insurance that workers classified as employees receive. Contractors “overwhelmingly” want to be permanent workers, according to a McKinsey survey from earlier this year.

Motivations for work

Half or more of current or recent gig workers say they’re drawn to these jobs to save extra money (56%) or needing to cover shifts or gaps in their income (52%). Forty-nine percent say that being able to control their own schedule is a major reason why they have taken on these jobs over the past year.

Legal protections and regulations

About 57% of U.S. adults say drivers for ride-hailing apps should have more legal protections, while 38% say these drivers have enough legal protections in place to ensure that the companies they work for treat them fairly. About half — 53% — don’t support changes in government regulation around ride-hailing apps. About 28% favor more regulation, and 15% say they should be less regulated than they currently are.

Safety

Some of the concerns gig workers share involve harassment, COVID-19, and safety concerns. About 37% of workers say they’ve been treated rudely while doing their jobs, and a similar number, 35%, say they often or sometimes feel unsafe while working. Roughly one in five say they’ve experienced unwanted sexual advances while doing their jobs, and about half of gig workers say they’ve been very or somewhat concerned about contracting COVID-19 while doing their jobs. Workers’ concerns about feeling unsafe or experiencing unwanted advances differ among racial and ethnic lines, with 41% of gig workers identifying as Black, Asian, Hispanic, another race, or multiple races reporting they at least sometimes feel unsafe while completing their jobs, compared to 28% of their white counterparts.