35 Hourly Worker Gig Economy Participation Trends Shaping Workforce Management

Essential data on gig economy growth, hourly worker demographics, and what multi-unit operators need to know about managing flexible workforces

The gig economy has changed how businesses staff their operations. In ADP Research's analysis of 2024 payroll data, 1 in 4 workers engaged in short-term W-2 or 1099 work at some point during the year. For multi-unit restaurant operators and businesses managing hourly teams, these arrangements can affect scheduling, payroll, compliance, and workforce planning.

Understanding the differences between temporary employees and independent contractors is particularly important because the two groups have different work patterns, pay profiles, and legal classifications.

Key Takeaways

• Gig participation is substantial: ADP found that 1 in 4 workers in its dataset engaged in short-term W-2 or 1099 work at some point during 2024.
• Pay differs by classification: Independent contractors had median pay of $25 per hour, compared with $15 for temporary W-2 employees.
• Younger workers participate heavily: TransUnion reported that 78% of Millennials and 67% of Gen Z respondents in its gig-worker research earned income through one or more gig platforms.
• Classification requires care: The IRS classification analysis considers behavioral control, financial control, and the type of relationship.
• Skilled freelancing remains significant: Upwork's 2026 research reports that 38% of workers in its U.S. knowledge-worker study were skilled freelancers.

Understanding the Gig Economy for Hourly Workers

The gig economy encompasses more than rideshare drivers and food delivery. ADP's research includes short-term W-2 employees and independent contractors receiving 1099 forms, two groups with materially different work and pay patterns.

1. One in four workers participated during 2024

ADP found that 1 in 4 workers in its payroll dataset engaged in short-term W-2 or 1099 work at some point during 2024.

2. 21.8% had short-term W-2 work

Short-term W-2 employees represented 21.8% of workers who were paid at some point during 2024 in ADP's dataset.

3. About 10% participated monthly

In a typical month during 2024, short-term W-2 and 1099 jobs together represented nearly 10% of filled jobs in ADP's dataset.

4. Skilled freelancers generated $1.5 trillion

Upwork estimates that U.S. skilled freelance knowledge workers generated over $1.5 trillion in earnings during 2024. The figure applies to skilled knowledge freelancing rather than every form of gig work.

The Rise of Hourly Gig Work Platforms

Platform-based work has created new infrastructure connecting workers with short-term opportunities. Survey findings can help operators understand how workers use these platforms, although survey populations should not automatically be treated as estimates for the entire U.S. workforce.

5. 62% in TransUnion's survey earned platform income

In TransUnion's 2024 gig-economy research, 62% of respondents were reported as earning money through one or more gig platforms. The survey population included current, past, and prospective gig-economy contractors.

6. 23% reported rideshare work

Driving for a ridesharing service was the most commonly reported category, selected by 23% of respondents in TransUnion's gig-worker research.

7. 19% reported restaurant delivery

Driving for restaurant delivery services was reported by 19% of respondents, tying digital freelancing as the second-most-common category reported in the survey.

8. 16% of hospitality jobs were temporary

ADP found that short-term W-2 employment represented 16% of employment in leisure and hospitality, the highest share among the sectors it analyzed.

Who Are Today's Hourly Gig Workers?

Worker demographics differ substantially between temporary W-2 employment, independent contracting, and platform-based gig work.

9. 78% of Millennials reported platform income

TransUnion reported that 78% of Millennials in its gig-worker research were earning income through one or more gig platforms.

10. 55% of Millennials cited gig work as primary income

Among Millennials in TransUnion's study, 55% reported gig work as their primary employment and income source.

11. 67% of Gen Z respondents reported platform income

TransUnion found that 67% of Gen Z participants in its research were earning income through one or more gig platforms.

12. More than 43% of temps were under 30

ADP found that over 43% of short-term W-2 workers in its 2024 demographic sample were younger than 30.

13. 71% of contractors were men

In ADP's demographic analysis, 71% of contractors were men in 2024.

14. 7.2% of contractors were 70 or older

Workers age 70 or older represented 7.2% of contractors, compared with 3.8% of the overall workforce in ADP's analysis.

Benefits and Challenges of Gig Work for Hourly Employees

Flexible work can appeal to workers for several reasons, but motives and financial outcomes vary substantially by worker and type of gig.

15. 71% cited flexibility in satisfaction

Among respondents satisfied with their gig-platform work, 71% cited flexibility as a reason for their satisfaction.

16. 47% prioritized flexibility when choosing work

When respondents decided which gig work to pursue, 47% chose flexibility as a leading consideration, ahead of skill-set match at 39%.

17. More than 60% used gigs for supplemental income

TransUnion reported that over 60% of surveyed gig workers participated to supplement their income.

18. 37% reported gig work as primary income

Across generations in TransUnion's survey, 37% of respondents reported gig work as a primary source of income.

19. Two-thirds earned under $2,500 monthly

TransUnion reported that about two-thirds of surveyed gig earners received less than $2,500 per month from gig work.

Navigating Payroll and Compliance for Gig Workers

Managing employees and independent contractors requires attention to classification, payroll, tax reporting, and applicable employment laws. Worker classification should be based on the actual relationship rather than the label attached to it.

20. Temps represented 8% of filled jobs

Short-term W-2 employees held 8% of jobs observed in an average month in ADP's 2024 dataset.

21. Contractors represented 1.8% of filled jobs

Independent contractors accounted for 1.8% of jobs observed in an average month in ADP's dataset.

22. Temps received 3.2% of wages

Although short-term W-2 workers performed about 8% of jobs in ADP's analysis, they accounted for 3.2% of wages.

23. Contractors received 0.4% of pay

Independent contractors accounted for 0.4% of pay in ADP's dataset, reflecting both their smaller employment footprint and fewer average hours.

24. Contractors earned $25 median hourly pay

Independent contractors had median hourly pay of $25 in ADP's analysis, compared with a $23 median across the overall working population studied.

25. Temps earned $15 median hourly pay

Short-term W-2 employees had median hourly pay of $15 in ADP's dataset.

Optimizing Workforce Management for Hourly Gig Engagement

Variable work patterns can complicate staffing decisions when organizations use a combination of traditional employees, temporary employees, and independent contractors.

26. Contractors averaged 85 monthly hours

Independent contractors averaged 85 hours monthly, compared with 155 hours for traditional W-2 employees in ADP's research.

27. Temps averaged 88 monthly hours

Short-term W-2 employees averaged 88 hours monthly.

28. One in four temps worked under 40 hours

ADP found that 1 in 4 short-term W-2 workers logged fewer than 40 hours in a given month.

29. Nearly 14% of contractors exceeded 180 hours

Despite lower average hours, nearly 14% of independent contractors in ADP's analysis worked more than 180 hours in a month.

For multi-location restaurant operators, these variable work patterns can increase the importance of accurate scheduling, timekeeping, payroll records, and worker classification.

The Future Outlook for Hourly Gig Economy Participation

Current research continues to show substantial participation in independent and freelance work, although different studies measure different populations and should not be treated as interchangeable.

30. 38% of knowledge workers freelanced

Upwork's 2026 Future Workforce Index reports that skilled freelancers represented 38% of workers in its U.S. knowledge-worker research, up from 28% in the prior year's study.

31. ADP's contractor sample grew 50%

ADP's average monthly sample of independent contractors increased from roughly 300,000 in 2019 to more than 450,000 by the end of 2024, a 50% increase.

32. 35% of Gen Z planned more gig work

TransUnion reported that 35% of Gen Z respondents planned to increase their gig-platform work, either through additional hours or more platforms. The comparable figure for Millennials was 31%.

33. 82% saw more opportunities

Upwork's 2025 Future Workforce Index reported that 82% of freelancers surveyed believed they had more work opportunities than a year earlier. This is a vendor-reported finding focused on skilled independent professionals.

Finding and Managing Top Hourly Gig Talent

Worker intentions and satisfaction can help businesses understand whether platform-based gig work is likely to remain part of the labor market.

34. Only 8% planned to leave for full-time work

In TransUnion's survey, only 8% of gig earners said they planned to stop gig work and acquire a full-time job.

35. 64% reported platform satisfaction

TransUnion found that 64% of respondents were somewhat or very satisfied with their gig-platform work.

For operators building flexible workforce programs, effective onboarding, scheduling, timekeeping, and payroll processes can help maintain consistent operating practices across worker groups and locations.

Key Considerations for Multi-Unit Operators

The research highlights several practical considerations for businesses managing hourly and flexible workforces:

• Classification matters: The IRS framework considers behavioral control, financial control, and the type of relationship when distinguishing employees from independent contractors.
• Flexibility matters to workers: TransUnion found that 71% cited flexibility as a driver of satisfaction among surveyed gig workers.
• Work patterns vary: ADP found significant differences in monthly hours among traditional employees, short-term W-2 workers, and independent contractors.
• Younger workers participate heavily: TransUnion reported high platform participation among Millennials and Gen Z workers in its survey.

Understanding these trends can help operators make more informed decisions about workforce management systems and compliance. Additional operational guidance is available from Operators Daily.

Frequently Asked Questions

What defines an hourly gig worker?

There is no single universally accepted definition of “gig worker.” ADP's analysis, for example, separates short-term employees from independent contractors because the two groups have different employment and tax treatment.

How should businesses manage scheduling and payroll for mixed workforces?

Businesses should maintain records and processes appropriate to each worker's actual classification. Employees generally receive W-2 reporting and payroll withholding, while qualifying nonemployee compensation may be reported on Form 1099-NEC under IRS requirements.

What are the key worker-classification considerations?

For federal employment tax purposes, the IRS considers evidence concerning behavioral control, financial control, and the type of relationship. No single factor automatically determines classification, and other federal or state laws may apply separate standards.

Why does classification matter?

Misclassification can affect tax obligations and workers' eligibility for employment protections. The U.S. Department of Labor notes that employees misclassified as contractors may lose access to protections such as minimum wage and overtime under the Fair Labor Standards Act.

What should multi-location operators look for in workforce software?

Operators should evaluate whether a system supports their actual workforce structure, including scheduling, timekeeping, location-level reporting, payroll workflows, permissions, integrations, and recordkeeping requirements. Software capabilities should be evaluated separately from the legal determination of whether a worker is an employee or independent contractor.

Why do workers choose gig arrangements?

In TransUnion's 2024 survey, 71% cited flexibility as a contributor to satisfaction, while more than 60% reported using gig work to supplement their income.