Mapping the Places Where the Side Gig Economy is Growing Fastest

A new study by LLC Attorney examines the booming side-gig economy across the United States, identifying which states have seen the largest increases in freelance work and why. The piece introduces us to an expanding “Gig Economy” driven by apps and services like Uber, DoorDash, and Fiverr. These apps have made on-demand work accessible on a wide scale. While the side-gig economy is growing overall, the team shows that growth isn’t evenly distributed. Some states have far more gig workers than others.

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To get the data needed to create the map, the team analyzed year-over-year changes in the average monthly number of people holding a second side gig job and the growth of non-employer business establishments. Drawing on data from IPUMS CPS and the U.S. Census Bureau, the team created a color-coded map.

The top five states show us an interesting geographic picture. Oregon claimed the number one spot with a 24.2% rise in the average monthly number of people working a second gig job. Oregon has the highest number of gig workers in general. Nevada had one of the largest increases, at 25.7%, thanks to its tourism-heavy economy, which naturally generates demand for ride-sharing, Airbnb, and delivery services. Alaska takes third place, despite its smaller population. It had a 27.7% increase, while North Dakota follows in fourth with a 23.8% rise. Hawaii rounds up the top five with a huge 34.3% jump in residents working two jobs between 2022 and 2023.

These specific states lead the way because of two recurring issues. High costs of living, with rising costs of food, healthcare, and housing outpacing wage growth in these regions, lead more people to take on second jobs out of necessity. Hawaii has steep grocery and housing costs; Oregon and Nevada face similar cost-of-living issues.

These top-ranking states might appear to be thriving if we look at the Gig Economy numbers, but they have less diverse job markets, often relying on tourism. These seasonal and unpredictable jobs lead workers to seek ways to diversify their income.

The top ten states with the biggest gig economies are:

• Oregon
• Nevada
• Alaska
• North Dakota
• Hawaii
• South Carolina
• Delaware
• Rhode Island
• Virginia
• Massachusetts

Gig work can be convenient and a big asset to small business owners, but it also has downsides. Gig roles rarely include health insurance or benefits, income tends to be inconsistent, and the work is for people who don’t mind flying solo without coworker interaction. It does support independence and a flexible work schedule for people who value those qualities.

This map helps us understand the lasting changes the gig economy has had on the American economy. Side gig trends reflect how workers respond to economic changes, whether they face setbacks or opportunities. Side gigs create a fairly straightforward, low-effort way to make money, but they also drive steeper competition for jobs. Visualizing data can help us understand what drives economies and helps gig workers decide what opportunities will help them grow.