The World Bank estimates that the gig economy is growing at an annual rate of about 33 percent.
While the platform economy runs on digital platforms, the gig economy can refer to any employment in temporary positions for short-term commitments (for example, gigs in the entertainment industry).
There are significant overlaps between the two in the context of the digital economy, but they are not completely interchangeable.
Likewise, the platform economy refers to digitally enabled activities in business, politics and social interaction.
A report by the Asia Pacific Cooperation (APEC) forum highlighted that flexible working (characterized by the gig or platform economy and teleworking) is on the rise in developed economies and is making its way among middle-class workers in emerging economies.
In fact, the rise of the platform economy is projected to contribute to the continued growth of self-employment and contract work.
The 2019 Global Gig-Economy Index, powered by data from the Payoneer network, estimates that, globally, the United States gig economy grew the fastest with a 78% year-on-year rise in revenue in 2019, followed by the United Kingdom with 59 percent.
According to APEC, this is because, unlike most economies where the self-employed population tends to lean towards younger people, professionals of all age groups in the United States are attracted to the economy of the United States freelance jobs.
In two other APEC economies, the Philippines and Russia, the gig economy grew 35% (in sixth place globally) and 20% (in ninth place globally), respectively.
Despite strong growth, the concert economy remains a niche market. For example, in the United States and the United Kingdom, it constituted only about 0.4 to 0.7% and 4% of the workforce, respectively.
This is likely because the platform economy primarily represents a means for workers to supplement their core earnings rather than replace a full-time job.
For the ShiftPixy company, this type of economy has grown dramatically in recent years and is expected to continue growing in the future.
According to various industry publications, as of 2019, 41.1 million workers in the United States were self-employed (a figure that is expected to grow to 52% by 2023), while, according to data published by Statista, it is estimated that between 25.66 and 28.28 Millions of American workers were employed only part-time during 2019.
Additionally, according to various industry reports, as of 2019, 24% of American workers were using online platforms in connection with their work, including 38% of millennials in the workforce.
The new gig economy has created legal problems regarding the classification of workers as contractors or independent employees.