October 2024

The gig economy’s impact on the workplace

Findings from a recent consumer survey show that gig work—a type of alternative, independent work arrangement—has emerged as a means of achieving financial resiliency and improving economic prospects. Currently, 26% of those employed are classified as independent workers. Some estimates predict that number to skyrocket to be half the workforce by 2028.1

As the gig economy continues to expand, it’s important for employers to understand what motivates workers to take on a “side hustle” and how that will impact their efforts to attract and retain talent for their companies.

Motivations among worker segments

Full-time independent workers:

  • Schedule flexibility
  • A sense of control over the work they enjoy
  • Self-direction and being their own boss

Workers with a main and side job:

  • Increase discretionary income
  • Greater schedule flexibility
  • Ability to save towards a goal

For Gen Z in particular, achieving financial stability through full-time employment right out of college can seem out of reach when considering key factors, such as the rising cost of living, student debt and a competitive job market.

58% of Gen Z have an optimistic outlook on the gig economy. 45% earn $2,500 or more per month through gigs

“Side hustle” challenges

While many are finding fulfillment and additional income, the gig economy also poses challenges. Gig workers express stress related to:

Complicated tax situations

Not earning as much as expected

Inconsistent pay

Lack of benefits

Having less personal and family time

Demanding “hustle” culture

Breakdown of workers

Percent (%) among general population

Traditional workers (33% of population): full-time, part-time or self-employed works who do not do any additional independent work. Independent workers: Engage in some arrangement of independent work (e.g., gig work, sole proprietor, freelancer, or content creator): Worker with main job and a side job (8%), worker with multiple independent jobs (2%), worker with one full time independent job (16%), non workers: Unemployed, retirees, students, full-time caregivers or active military who do not do any additional independent work (41%).

Typical gigs

Types of side jobs

Percent (%) selected; among independent workers

35%

Freelance services

  1. Artist
  2. Teacher/tutor
  3. Landlord

34%

Business owner/partner

  1. Product-based
  2. Service-based

26%

Gig/on-demand services

  1. Odd jobs or manual labor
  2. Caretaker
  3. Food delivery driver

23%

Content creation

  1. Content creator
  2. Influencer

10%

Renting/reselling

  1. Reseller
  2. Vacation property rental host

Key takeaways

  • Consider supporting the holistic well-being of employees who may be dealing with the stress of multiple jobs—or who have family members in multiple jobs—with additional benefits like hybrid work models, four-day work week, flexible schedules, Lifestyle Spending Accounts (LSAs) and Employee Assistance Programs (EAPs).
  • To help with your recruiting efforts and part-time employment, consider engaging workers in the gig community.
  • Offer an attractive package of benefits that can foster wellness across employees’ full financial lives and help them manage everyday financial challenges, while also planning for the future and retirement.

Source for all stats unless otherwise noted: Bank of America Proprietary Market Landscape Insights Study, July 2024. Surveys conducted among general consumers (clients and prospective clients).

1 2022 McKinsey, American Opportunity Survey.