Introduction

The gig economy continues to boom…

Last year, we saw how much the pandemic accelerated the growth of the gig economy. And this year, we saw that these changes are here to stay. People are increasingly embracing gig work and launching their own businesses thanks to the freedom and flexibility these paths provide. There were about 23.9 million independent workers in the United States in 2021, an increase from 12.9 million in 2017. And the number of freelancers in the US is projected to grow to 86.5 million by 2027. 

But despite the rising number of workers turning to gig work, competition for this workforce remains fierce. The gig economy and the contractors that power it are rapidly shifting. From new platforms emerging daily to inflation challenges, how have independent contractors responded to these changes and what can platforms do to attract and retain talent?

To understand the latest in work and payment preferences within today’s 1099 workforce, we’ve published our 2nd annual Branch x Marqeta Gig Payments Report—a look at payments and platform preferences of today’s gig workers. Surveying over 1,000 gig workers and independent contractors across industries, the new report dives into how the new normal and timely economic factors such as rising costs have impacted gig work, what workers look for in a platform, and how gig economy payments trends have shifted, among a range of other topics.

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Key Findings

Inflation

• 85% of respondents have increased their gig work recently or plan to increase it, with 45% citing inflation as the primary reason for doing so.  
• Workers cited higher pay, scheduling flexibility, and faster payouts as their top incentives for taking on gig work 
• With rising inflation impacting both work and personal expenses for 57% of respondents, access to cash more quickly is critical to meet financial needs.  

Platforms 

• Gig workers are choosing the food/grocery delivery sector (50%) and cleaning/home repair services (12%) as their primary industries, as rideshare decreased significantly from 10% of respondents in 2021 to 5% this year. 
• The Great Resignation trend is also fueling gig work, with 35% of respondents citing they’ve quit, or plan to quit, full-time employment in the past year to join the gig economy. 

Payments

• Ninety percent of workers associated faster pay with greater financial peace of mind.
• About 80% of workers were likely to choose one gig platform over another if it could pay you instantly without fees.
• Nearly 70% of gig workers prefer to receive their pay within the same day they work, with 39% preferring right after each job and 29% at the end of each day.
• Debit cards were overwhelmingly the preferred method of payment, followed by cash.

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Download the complete report to explore the rest of the survey findings.