The gig economy is increasingly becoming a primary source of income for workers across the United States, according to a new report from TransUnion. The report found that 37% of gig workers now depend on their gig work as their main source of income, with Millennials leading the charge.
The report, based on an online survey of over 1,000 adults conducted in August, reveals that over half (55%) of Millennials rely on gig work as their primary source of employment. Additionally, younger generations appear more inclined to embrace gig work, with 78% of Millennials, 67% of Gen Z, and 65% of Gen X workers earning money through one or more gig platforms. By comparison, only 36% of Baby Boomers reported engaging in gig work, although 40% said they intend to in the future.
“The gig economy has earned a strong reputation among workers as a reliable source of income that allows for unparalleled flexibility,” said Tracey Lazos, senior director of TransUnion’s gig economy business. Lazos highlighted that the report’s findings suggest a trend of workers increasingly viewing gig work as a legitimate and potentially long-term career choice.
Despite the reliance on gig work, two-thirds of gig workers earn less than $2,500 per month, according to TransUnion. However, among those who report gig work as their main source of income, a notable proportion—36% of Millennials and 21% of Gen Z workers—earn over $5,000 per month.
The survey found that flexibility is a significant draw for gig workers, with 71% indicating that it is a primary reason for their satisfaction. Other top reasons include enjoying the work itself (59%), alignment with their skillsets (47%), and earning potential (41%). The most popular gig roles include ridesharing (23%), freelancing for digital services (19%), and restaurant delivery (19%).
TransUnion’s data also indicates that the gig economy’s popularity is likely to grow, with 35% of Gen Z workers and 31% of Millennials planning to increase their involvement on gig platforms in the coming months. Only 8% of respondents expressed intentions to leave the gig economy for traditional full-time employment.
The report suggests that to attract and retain workers, gig platforms may need to enhance offerings such as identity protection, financial education, and supplementary insurance coverage. “Gig workers already enjoy a flexible work experience that allows them to earn what they want, when they want, and how they want,” Lazos noted, emphasizing that additional services could empower workers and foster long-term engagement.
The survey also noted seasonal fluctuations in gig work participation, with younger workers more likely to take on extra work during specific seasons, such as summer and winter, while older workers tend to work on an as-needed basis for supplemental income.
The study provides insights into how the gig economy is reshaping employment trends in the U.S., underscoring the growing acceptance of gig work as a viable career path across generations.