The “gig” or “freelance economy” is booming thanks to popular apps like Fiverr, DoorDash, and Lyft, which make starting a side business more accessible than ever. These side gig opportunities offer a wide array of benefits and challenges. The team at LLCAttorney examined all the ins and outs in a new study, which allowed them to rank each U.S. state by how quickly its side-gig economy is growing.
The team powered their analysis with data on how many in each have a second job and how many non-employer businesses launched between 2022 and 2023. They mapped out color-coded results revealing areas where side gigs are booming. These are the states with the fastest growth:
• Oregon
• Nevada
• Alaska
• North Dakota
• Hawaii
• South Carolina
• Delaware
• Rhode Island
• Virginia
• Massachusetts
There were many common qualities in the highest-ranking states. Many of them had a high cost of living and/or a booming tourism economy. All around the U.S., the cost of living is rising faster than wage growth, so for many people, side gigs are the solution to make ends meet, particularly in states where food and housing cost more. Tourism-centric states create a high demand for side-gig workers who can make deliveries, offer rideshares, or manage short-term rentals. In Alaska, tourism is a major driver, but harsh weather leads to seasonal work, leaving people seeking side jobs in the lean months.
Side gigs are the perfect solution for people who need to diversify their income. They offer flexible schedules, the ability to choose jobs, and, generally, a lot of freedom to put work in workers’ hands. There are challenges too, though. Gig work can be lonely and isolating, not a great fit for people who thrive in a social or collaborative environment. Competition for jobs can be fierce, depending on the location, leading to increased stress and unpaid efforts.
No matter what your opinion is on the gig economy, it seems here to stay, and it’s revolutionized the ways people earn their money. Anyone with aspirations to start a small business can make a strong start in the world of side gig work.
