Articles by Milica Aleksandric - FinMasters Master Your Finances and Reach Your Goals Fri, 05 Jan 2024 15:12:44 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 401(k) Statistics: What is the Average 401(k) Balance? https://finmasters.com/average-401k-balance/ https://finmasters.com/average-401k-balance/#respond Thu, 31 Aug 2023 07:34:16 +0000 https://finmasters.com/?p=217387 The 401(k) is a popular way to save for retirement. Let's look at average 401(k) balances and other 401(k) statistics.

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Curious about the average 401(k) balance? Americans hold $6.6 trillion in assets in 401(k) plans, making the 401(k) one of the nation’s leading vehicles for retirement savings. Let’s look at some statistics that break down America’s 401(k)s, from participation rates to average balances.

Key Findings

  • 72.21 million Americans are active participants in 401(k) plans.
  • Approximately 14% of plan holders make the maximum contribution to their 401(k)s.
  • Around 1.4% of plan holders have $1 million or more in their 401(k) accounts.
  • The average 401(k) balance reached $87,040 in 2020.
  • 39.9% of 401(k) participants had balances under $10K.
  • The average 401(k) employer contribution rate is 4.8%.
  • 39% of Americans start saving for retirement in their 20s.
  • The median retirement age in the US is 62.

How Many Americans Have a 401(k)?

72.21 million Americans participated in 401(k) plans in 2020[1].

đź“– Learn more: Understand the distinctions between 401(k) and IRA with our comprehensive comparison, ensuring you’re on the right retirement path.

Access to 401(k) Plans

Employers that offer retirement plans like 401(k)s are required to meet standards set by the Employee Retirement Income Security Act of 1974, or ERISA. This law does not require employers to offer retirement plans, and many, especially smaller employers, do not.

The percentage of American workers with access to a retirement plan has grown steadily, but 38% of American workers still lack this access.

Not all workers with access to a 401(k) plan actually open an account. The participation rate is the percentage of eligible workers that participate in the plan.

đź“– Learn more: Curious about the best 401(k) choice for your needs? Our post breaks down the differences between Roth and Traditional options.

401(k) Participation Rates

In 2021, aggregate participation rates in 401(k) plans among Vanguard clients reached 82% (94% among plans with automatic enrollment, 63% among plans with voluntary enrollment) across all age groups[2].

How Many 401(k) Millionaires Are There?

Fidelity Investments had 299,000 clients with over $1 million in their 401(k) at the end of 2022, representing 1.4% of the 21.5 million accounts it manages[4].

How Many People Max Out Their 401(k)?

Around 14% of investors maxed out their 401(k) in 2021 ($19,500 in 2020), according to Vanguard data with a sample of 4.7 million participants[3].

Maxing out your 401(k) means that you contribute the maximum amount allowed by law in a given year. The maximum 401(k) contribution is $22,500 in 2023 ($30,000 for those age 50 or older).

Historical Contribution Limits for 401(k) Plans, 1978 – 2023

Average 401(k) Balance

According to the latest data available, the average 401(k) balance is $87,040[5].

Median 401(k) Balance

The median 401(k) balance reached $17,961 at the end of 2020 (across 11.5 million accounts included in the sample)[5].

đź“– Learn more: Gain perspective on retirement readiness with our detailed overview of savings trends based on diverse factors.

Average 401(k) Balance by Year

In the period from 2004 to 2020, the average 401(k) balance saw fluctuations, starting at $56,878 in 2004 and reaching its highest at $87,040 in 2020, with a notable dip to $45,519 in 2008[6].

The significant drop in the average 401(k) balance in 2008 can be attributed to the global financial crisis, often referred to as the “Great Recession.” The 2008 financial crisis drastically reduced average 401(k) balances due to a stock market crash and widespread economic turmoil.

đź“– Learn more: Considering options beyond a 401(k) for retirement? Our post outlines six alternatives worth evaluating.

Average 401(k) Balance by Account Size

In 2020, 39.9% of 401(k) participants had balances under $10K, while 11.4% had over $200K; the majority of participants had balances ranging between $10K and $100K, with each subsequent range accounting for a smaller share[7].

Average 401(k) Balance by Age

In 2020, average 401(k) balances ranged from $6,264 for those under 25 to $279,997 for those over 65, showing a clear increase with age.

For Americans over 65 years, the average 401(k) balance across Vanguard-managed defined contribution plans reached $279,997, more than in any other age group[3]. 

Average 401(k) Balance by Generation

Boomers (ages 59-77) have the largest average 401(k) balance at $215,000. That’s almost twice the average across all groups, which is $108,200 as of Q1 2023, according to Fidelity Investment data.

Those starting in their career (under 26) had the lowest average 401(k) balance of $7,100 in early 2023[8].

Average 401(k) Balance by Tenure

In every age group, workers who have been in their jobs longer have larger 401(k) balances. Workers who have moved from job to job may have multiple 401(k) plans, so these figures may not reflect total 401(k) balances[7].

Average 401(k) Balance by Income Level

Top earners with an annual income of over $150,000 had $397,882 in 401(k) balance on average, nearly twice as much as that earning between $100,000 and $149,999 ($219,651) among Vanguard managed plans[3].

Average 401(k) Balance by Gender

Analysis of Fidelity data shows that men, on average, have larger (401k) balances of $129,300. 32.25% larger than the average $87,600 among women[8].

$129,300average 401(k) balance of men in the US
$87,600average 401(k) balance of women in the US

đź“– Learn more: Ensure your loved ones are informed; delve into our analysis of what transpires with a 401(k) upon death.

Average Contribution to 401(k)

The average employee contribution among workers 26-64 years old reached $5,510 (a contribution rate of 6.6%) as of 2018.

Average employed contributions varied between $3,579 (5.8%) to $7,669 (7.8%), depending on the age of an employee[9].

Unsurprisingly, top earners with a wage and salary income of $200,000 or more have the largest average contribution, at $18,433. They also have the lowest contribution rate, at 4.1%[9].

What Is the Average 401(k) Match?

As of Q1 2023, the average employer contribution rate (incl. profit sharing and matching contributions) reached 4.8%[8].

Many employers match the contributions of their employees. They receive tax breaks for doing this, up to a fixed level.

The most common 401(k) company match is a 100% match on the first 3% of the employee’s salary that is contributed to the 401(k) and a 50% match on the remaining 2%. Around 44% of employers using Fidelity 401(k) plans offer this formula.

Curious about the norm for #401(k) balances? Dive into our newest research for key insights.đź“Š
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The Average 401(k) Return Rate by Year

Assuming a portfolio mix of 60% stocks and 40% bonds, the typical 401(k) return rate ranges between 5% to 8% per year.

Largely due to stock market volatility, the AmericanTCS 401(k) Composite Benchmark reported an average return rate of negative 16.7% rate in 2022 but a positive 14.92% in 2021[10].

Over the past 5 years (ending in 2022), 5-year return rates reached 5.93% among the top 20% plans and 3.63% among the bottom 20% plans[11]. 

Here’s a detailed breakdown of a 5-year return 401k performance by plan: 

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]]> https://finmasters.com/average-401k-balance/feed/ 0 Car Loan Statistics 2024: Average Debt, Payment and Default Rate https://finmasters.com/car-loan-statistics/ https://finmasters.com/car-loan-statistics/#respond Mon, 31 Jul 2023 16:00:16 +0000 https://finmasters.com/?p=209011 Car loans account for a significant portion of US consumer debt. These car loan statistics will tell you more about it.

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There’s over $1.55 trillion in auto loan debt outstanding in the US, making it one of the major sources of consumer debt[1].

Let’s look at some data on car loans, including total car loan balances, rates, and average monthly payments.

Key Findings

  • Overall, Americans owe $1.55 trillion in car loan debt representing 9.17% of all consumer debt in the country.
  • 80.85% of new cars sold in the US in 2022 were acquired using some type of financing.
  • The average monthly car payment for new cars in the US is $716.
  • Auto loan rates for new vehicles in the US range from 4.75% to 13.42%, depending on credit scores and other factors.

Total Car Loan Debt in the US

Americans hit a fresh record of $1.55 trillion in car loan balances in Q4 2022, an increase of 2% over the last quarter of 2021[1]. Car loan debt represents 9.17% of all consumer debt in the US as of the end of 2022[2].

Average Car Loan Debt

The average amount financed for new car loans as of Q4 2022 was $41,445. This is a 17% increase since the last quarter of 2020[3].

The average amount financed for used car loans was $27,768 in Q4 2022, 22.6% more than reported in Q4 2020[3].

Share of Vehicle Purchases with Financing

More than 8 in 10 (80.85%) new cars in the US were acquired using some type of financing.

Consumers opting for used vehicles rely less on financing, with 39.81% using it[3].

Average Auto Loan Rates

The average interest rate for a 60-month new car loan reached 7.48% in Q1 2023, up from 4.52% a year before.

Interest rates for 72-month new car loans increased from 4.54% in early 2022 to 7.48% at the beginning of 2023[4].

Navigate the auto finance landscape with our post on 'Car Loan Statistics 2024'. Make informed decisions! đźš™#CarLoans #FinanceStats
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Learn more: Your credit score has a huge impact on the interest rate you’re offered on an auto loan. Take a look at the average auto loan rates by credit score and what credit score do you need to buy a car to know what to expect.

Car Loan Interest Rates by Credit Score

Average new car loan rates in the US significantly vary by credit card score and range from 5.18% for super-prime borrowers (credit score of 781 or above) to 14.08% for deep subprime consumers with credit scores below 500 as of July 2023. That’s a 94% difference in interest rates paid between the top and bottom credit score consumer groups[5].

Among consumers who took financing for used cars, the difference between groups is even greater, ranging from 5.99% among borrowers with excellent credit scores (720 or above) to 20.62% among consumers in the bottom credit score tier (below 580)[5].

Average Car Payment

The average monthly payment for new car loans has grown to $716, up from $646 and $578 in Q4 2021 and Q4 2020, respectively[3].

For used car loans, Americans are spending an average of $526 per month as of Q4 2022 (an increase from $490 in Q4 2021 and $417 and Q4 2020)[3].

Average Car Payments by Credit Score

New car loan holders are paying on average from $683/month (among super prime borrowers) to $700/month (among those with a credit score between 300 and 500) as of July 2023[3].

Average monthly payments for used cars range from $505 (among borrowers with top credit scores) to $524 (in the subprime credit score category)[3].

Auto Loan Delinquency Rate by 90 or More Days

3.94% of the outstanding auto debt was in serious delinquency (90 or more days late) as of Q4 2022, 0.25 percentage points lower than in the same quarter in 2021[6].

Auto Loan Default Rate

The annualized auto loan default rate reached 2.72% in January 2023, lower than the 3.24% registered in January 2019[7].

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]]> https://finmasters.com/car-loan-statistics/feed/ 0 2024 US Car Sales Statistics: Brand, Model, Price, EVs https://finmasters.com/car-sales-statistics/ https://finmasters.com/car-sales-statistics/#respond Mon, 24 Jul 2023 16:00:39 +0000 https://finmasters.com/?p=205612 These US auto sales statistics help us define and understand the state of the US motor vehicle market in 2023.

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Curious about the current state of the US automotive industry? Let’s explore the latest car sales statistics, including sales volume, top-selling brands, average transaction prices, and more.

Key Findings

  • Around 13.74 million cars and light trucks were sold in the US in 2022.
  • US auto sales volume reached 2.13 million units in January-February 2023, with a forecasted 14.8 million in 2023.
  • The US car buyer pays an average of $49,468 for a new car.
  • Trucks accounted for 79.24% of all auto sales in the US in early 2023.
  • Electric vehicles reached 8% of all new vehicles sold in the US in January 2023.
  • 762,883 fully electric vehicles were sold in the US in 2022.

New Car Sales

According to S&P Global Mobility, US light vehicle sales volume from January 2023 to February 2023 reached 2.13 million units. Industry forecasts suggest a range from 14.1 million to 15 million vehicles in 2023 US auto sales[1].

US auto sales volume in 2022 hit 13.74 million units, the lowest since 2012, with sales constrained by rising prices and high interest rates[2].

Note: The table above contains data for passenger cars and light trucks from multiple sources and may not be comparable between some years due to differences in methodology. Sales volume may contain leases. Data for 2023 are forecasts.

Based on Motor Intelligence estimates, Ford (289,480 units), Toyota (252,281), and Chevrolet (239,191) led the ranking of most popular car brands by sales in the US in early 2023 (from January to February)[3]. 

When broken down by category, light truck sales dominated auto sales in the US, accounting for a 79.24% share in January – February 2023.

đź›» Here’s the full auto sales ranking by brand in the US in 2023 (January – February):
BrandCar sales volumeTruck sales volumeAll, Jan – Feb 2023
Ford8,981280,499289,480
Toyota76,258176,023252,281
Chevrolet29,782209,409239,191
Honda54,37193,494147,865
Nissan34,48388,660123,143
Tesla45,68068,520114,200
Kia32,80680,036112,842
Hyundai28,23880,807109,045
Jeep098,01398,013
Subaru32,66357,50090,163
GMC084,50484,504
Ram080,59880,598
Mazda5,93047,67653,606
Mercedes-Benz15,52034,66450,184
BMW20,03327,90647,939
Volkswagen3,74238,82942,571
Lexus9,14732,44641,593
Audi12,04221,56433,606
Dodge20,5489,69330,241
Buick022,96322,963
Cadillac4,84317,14921,992
Acura6,81113,08519,896
Chrysler171316,26417,977
Volvo116015,09316,253
Porsche4,4969,77514,271
Mitsubishi2,29310,55412,847
Lincoln011,96711,967
Land Rover011,74611,746
Infiniti9328,5699,501
Genesis2,2025,9118,113
Rivian05,1395,139
MINI2,68815234,211
Polestar2,02502,025
Jaguar22113601581
Alfa Romeo5698381407
Maserati2499331182
Lucid8480848
Bentley351264615
Ferrari4390439
Lamborghini157247404
Rolls Royce108121229
Fiat27072
Karma606
Total462,3371,764,4122,226,749

Based on complete 2022 sales data, the same 3 leading car makers (Ford, Toyota, Chevrolet) topped the ranking of most popular car brands in the US with 5.03 million sold units across 3 brands in the US alone[4].

A total of 12 car brands (incl. Honda, Hyundai, Jeep, Nissan, among others) hit a milestone of over a half million sold units each in 2022 in the US[5].

Best-Selling Cars

Trucks by Ford (653,957 units), Chevrolet (513,354), and Ram (468,344) took 3 top places among best-selling car models in the US in 2022[6].

A total of 14 cars sold over 200,000 units each in 2022.

đź›» US Car Sales Statistics
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Here’s a complete list of best-selling cars in the US based on 2022 data:

Average Price of a New Vehicle Sold

According to Kelley Blue Book, $48,763 was the average transaction price for a new vehicle across all segments in the US in February 2023, a slight decrease from $49,468 in January 2023[7].

When considering only the non-luxury vehicles category, the car buyer in the US paid $44,697 for a new vehicle in the US in February 2023; among luxury buyers, that was $65,534 in the same month. Nearly 2-in-10 (19.5%) vehicles sold in the US in February 2023 accounted for the luxury segment.

The average transaction price for a new electric vehicle sold in the US reached $58,385 in February 2023[8].

EV Sales Volume

Based on CleanTechnica estimates, 762,883 units of battery electric vehicles were sold in the US in 2022, accounting for 5.7% of all auto sales in the country[9]. 

Sales of fully electric vehicles in the US in 2022 increased by 3.1x over 2020. Based on S&P Global estimates, battery electric vehicles reached 8% market share in the US in January-February 2023[1].

The electric vehicle market in the US is dominated by Tesla (with Model Y and Model 3 as its top two best-selling cars), with a 66.86% market share among electric vehicles sold in the US in 2022, accounting for 510,058 units[9]. 

The most popular non-Tesla EV models were the Ford Mustang Mach-E (39,458 units sold) and the Chevy Bolt (38,120 units sold). 

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]]> https://finmasters.com/car-sales-statistics/feed/ 0 Online Shopping Statistics & Trends for 2024 https://finmasters.com/online-shopping-statistics/ https://finmasters.com/online-shopping-statistics/#respond Thu, 20 Jul 2023 16:00:01 +0000 https://finmasters.com/?p=212510 How big is e-commerce, and how fast is it growing? These online shopping statistics give a closer look at the trends.

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E-commerce adoption has been on a consistent rise. The COVID pandemic made buying from home irresistible, and once the habit set in, it was here to stay. Annual e-commerce spending in the US alone broke $1 trillion in 2022 and looks set to keep growing[1].

We’ve collected the latest stats on online shopping, from e-commerce market share over time to major drivers of online purchases. Let’s dive right in.

Key Findings

  • E-commerce retail sales in the US reached $1.03 trillion in 2022, accounting for 14.5% of all retail sales.
  • More than half (57.7%) of internet users aged 16 to 64 in the US shop online each week.
  • Home delivery (55%) and avoiding crowds (49%) are reported as the most common reasons Americans shop online.

E-Commerce Sales in the US

E-commerce retail sales in the US amounted to approximately $1.03 trillion in 2022, the first year when annual sales hit the $1 trillion mark. Annual e-commerce sales (in dollar value) in 2022 grew by 1.73x compared to 2019[1].

Share of E-Commerce in Retail Sales

According to estimates provided by the Census Bureau, e-commerce accounted for 14.5% of all retail sales in the US in 2022, registering a slight decrease from 14.7% (the highest reported share yet) in 2021[2].

Pre-pandemic, the share of e-commerce in overall retail sales in the US was on a consistent rise and hit 10.5% in 2019.

Note: Data adjusted for seasonal variation and converted from quarterly to annual frequency (using average as aggregation method).

Online Shopping Statistics & Trends 💻🛍
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How Many People Shop Online?

According to a GWI survey, 57.7% of internet users aged 16 to 64 in the US buy something online each week as of Q4 2022[3].

To put it in perspective, according to the same survey, 55.5% of global internet users shop online, with the highest e-commerce adoption rate reported in South Korea (64.7%).

Why Do People Shop Online?

According to a survey conducted among online shoppers in the US, direct home delivery (55%), avoiding crowds (49%), and convenience (48%) are cited as the most common reasons they shop online[4].

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]]> https://finmasters.com/online-shopping-statistics/feed/ 0 Average Retirement Savings: By Age, State, Income & Race https://finmasters.com/average-retirement-savings/ https://finmasters.com/average-retirement-savings/#respond Wed, 12 Jul 2023 16:00:55 +0000 https://finmasters.com/?p=211800 What is the average American retirement savings balance? Our retirement statistics look at the current state of retirement savings in the US.

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Want to know the current state of retirement savings in America? We compiled the latest stats on retirement savings in the US, including average and median retirement savings and breakdowns by age, race, income level, and education.

Let’s dive right in.

Key Findings

  • The total value of retirement assets in the US is $39.3 trillion dollars.
  • Most retirement assets are held in IRA accounts – $13.9 trillion dollars.
  • Median retirement savings are highest among heads of households who are 55 to 64 years old.
  • Connecticut, New Jersey, and New Hampshire are leading the ranking with the highest average retirement savings.
  • College graduates hold, on average, 5.52x more retirement savings than those who didn’t graduate high school.
  • Only 39% of adults started saving for retirement in their 20s. 
  • The average monthly retirement household income for Americans aged 65 and over is $6,271.
  • The most commonly reported sources of retirement income include social security (94%), personal retirement savings (69%) and a defined benefit or traditional pension plan (58%).

We will refer to average and median retirement savings:

  • The average is the total retirement savings of the group divided by the number of individuals in the group.
  • The median is the point where 50% of the group is higher, and 50% is lower.

An average can be skewed by a small group with very high or very low savings, so the median is usually a better indicator of overall conditions.

How Much Do Americans Have in Retirement Savings?

The latest data available shows that the total value of retirement assets in the US reached $39.3 trillion in 2021, a 12.2% increase from 2020[1].

Types of Retirement Accounts

The value of IRAs in the US amounted to $13.9 trillion, followed by 401(k) plans with $7.7 trillion in value and state, local government defined benefit (DB) plans at $5.8 trillion as the most common types of retirement assets[1].

Average American Retirement Savings

Let’s look at the latest statistics on average and median retirement savings broken down by age, race, income level, and education.

Average Household Retirement Savings

According to the latest available data from the Federal Reserve Board Survey of Consumer Finances, the average retirement account savings of American families reached $255,130. That’s a 4.9% increase since 2016[3].

The median retirement savings paint a different picture. Among all families in the US, median retirement savings are only $65,000. 

In addition to the big difference in value, median retirement savings have been growing at a slower pace than average family retirement savings[3].

Employee Benefit Research Institute (EBRI) analysis suggests similar findings – $258,453 in average household retirement account balance as of 2019 among families with at least one IRA/Keogh account or DB plan[2].

Note: All values are in 2019 dollars.

Average Retirement Savings By Age

Average household retirement savings vary from $30,354 to $413,814, depending on the age group of the family head[2].

Median retirement savings are highest among a group of 55 to 64 years old ($134,000), whereas they were lowest among those under 35 ($13,000)[2].

It’s expected that younger families have lower retirement savings. It’s still a concern that 50% of those aged 55-64 have retirement savings of less than $134,000, and 50% of those over 65 have less than $125,000. That indicates that many retirees will be financially stressed in the coming years.

Average Retirement Savings By State

Connecticut, New Jersey, and New Hampshire are leading the ranking with the highest average retirement savings.

Utah, North Dakota and Washington, D.C are at the bottom of the list, with the lowest average retirement savings[4].

Average Retirement Savings: By Age, State, Income & Race
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Average Retirement Savings By Income

Expectedly, average retirement savings differ depending on the income level, from $66,058 among families in the bottom 25% income tier to $487,783 among families in the 75% and higher income percentile[2].

The median family retirement holdings for all families in the US vary between $13,000 and $200,000, depending on the income level.

Average Retirement Savings By Race

When grouped by race of family head, there is a significant gap in average family retirement savings, which shows a 2.74x difference between White and Hispanic families. Specifically, average white households hold $298,418 in retirement savings, typical Black households hold $109,719 and Hispanic families hold $108,849 in retirement savings[2].

Average Retirement Savings by Education Level

College graduates hold, on average, 5.52x more retirement savings than those who didn’t graduate high school.

Among US families headed by college graduates, the retirement account balance on average amounted to $384,834, while their counterparts with some college experience had $140,669 in retirement account balance. Those with only a high school diploma and no further higher education reported $120,445 in mean family retirement savings, and those who didn’t graduate high school averaged $69,735[2].

When Do Americans Start Saving For Retirement?

Around 65% of people say that they started saving for retirement in their 20-30s.

Only 39% of adults started saving for retirement in their 20s[5].

Here’s a breakdown of when people start saving for retirement by age group:

Retirement Plan Participation Rates

The retirement plan participation rate in the US is 64.3%. These are families in the US who had a current or previous employer’s retirement plan (including defined-benefit plans) or an IRA/Keogh plan. The participation rate in 2019 has slightly dropped from the reported 64.9% in 2016[2].

Average US Retirement Income

The average monthly retirement household income for Americans aged 65 and over is $6,271 as of 2021, representing a 5.34% average annual change[6]. 

Here’s the average monthly retirement income in the US among adults aged 65 years and over by year: 

Sources of Retirement Income

According to the 2023 Retirement Confidence Survey conducted by the Employee Benefit Research Institute, the most commonly reported sources of retirement income include social security (94%), personal retirement savings (69%) and a defined benefit or traditional pension plan (58%).

While 75% of workers expect work for pay to be their income source in retirement, only 23% of retirees report it is. Nearly half – 42% – of workers expect that financial support from family or friends will be among their sources of retirement income, but only 14% of retirees reported receiving this source[2].

What Is The Average Retirement Age?

The median retirement age in the US is 62[7]. 

Here are some details on American retirement ages: 

What Is The Average Lifespan After Retirement?

Assuming a retirement age of 65, American retirees can expect an average lifespan of 18.3 years (16.9 years for males; 19.3 years for females) after retirement.

Where Do Americans Retire?

Nevada, Florida, and Arizona are among the top 3 states attracting retirement-age populations, with 89% or more of the retired population coming from elsewhere.

Among international destinations, Portugal, Mexico, and Panama are commonly cited as top retirement destinations[10].

Here’s a full ranking of the top 10 countries for Americans to retire across the world:

Top 10 Countries Where Americans Retire

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]]> https://finmasters.com/average-retirement-savings/feed/ 0 Average Salary in the US 2024: By Age, Gender, Race and State https://finmasters.com/average-us-salary/ https://finmasters.com/average-us-salary/#respond Mon, 03 Jul 2023 16:00:30 +0000 https://finmasters.com/?p=207848 How much do Americans earn? It varies widely with location, but these average US salary statistics give a general idea.

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How much do Americans make?

We’ve compiled a list of recent statistics to provide you with a better understanding of average salaries in the US, how they have changed over time, which factors are influencing worker compensation, and more.

Remember that salaries may vary widely from state to state and between urban and rural areas.

🔑 Key terms: average and median.

  • The average is calculated by adding up all of the values and dividing by the number of values.
  • The median is the point at which half the values are lower and half are higher.

An average can be heavily skewed by a few very high or very low values, so the median is usually a better overall guide.

Key Findings

  • The average salary of a full-time worker in the US amounts to $76,554 per year.
  • The median wage is $56,473.
  • Full-time working women earned an average of $65,831 in 2021, 77.8% of what men earned in the same year.
  • The average salary by state ranges from $42,700 in Mississippi to $98,370 in the District of Columbia.
  • Graduates with advanced degrees at full-time jobs earn, on average, 2.6x more than full-time workers who didn’t graduate high school.
  • Only 2 major occupational groups (management and legal) let full-time workers earn an annual median wage of over $100,000.

Average Salary in the US by Year

Americans with full-time jobs who work 50 weeks or more in a year make $76,554 per year on average[1].

The median annual earnings of full-time workers in the US amounted to $56,473 across all occupations and states.

Hourly Wage in the US by Year

The average hourly wage in the US is $27.07 ($58,260 in annual average wage)[2].

The median hourly wage across all occupations and all states is $22.00/hour.

Average Salary by Gender

In 2021, the average salary for American women was $65,831. That’s 77.8% of what men earned on average in the same timeframe ($84,600)[1].

Average Salary by Race

Asian workers tend to make more than any other race – $94,759 on average, followed by White ($77,396) and Black ($60,652) communities[1].

Average Salary by State

The annual average wage by state ranges from $42,700 in Mississippi to $98,370 in the District of Columbia.

Across 50 states and the District of Columbia, only 13 states had an annual average wage above $60,000. States with the highest annual average wage include Massachusetts ($72,940), New York ($70,460), Washington ($68,740), and California ($68,510)[3].

Average hourly wage by state
Median hourly wage by state
Annual average wage 

Average Salary by Age

Adults in their late 30-40s make the most compared to other age groups.

Younger adults (16 to 19 years) with full-time jobs have the lowest median weekly earnings – $623[4].

Median weekly earnings by age
Median annual earnings by age

(estimated 52 weeks) 

Average Salary by Education Level

In Q4 2022, the highest median weekly earnings were among graduates with advanced degrees ($1,761), 2.6x higher than among full-time workers who did not graduate high school ($675)[4].

Here’s complete data with the median earnings of full-time workers in the US by educational attainment:

Median weekly earnings by education level
Median annual earning by education level

(estimated, 52 weeks) 

Average Salary by Occupation

Top earners, ranked by annual average wage, work in management ($123,370), legal ($113,100), and computer and mathematical occupations ($99,860)[5].

The post Average Salary in the US 2024: By Age, Gender, Race and State appeared first on FinMasters.

]]> https://finmasters.com/average-us-salary/feed/ 0 Average Credit Card Debt in the USA in 2024: Facts & Figures https://finmasters.com/average-credit-card-debt/ https://finmasters.com/average-credit-card-debt/#respond Fri, 30 Jun 2023 16:00:28 +0000 https://finmasters.com/?p=213496 How much do Americans owe on their cards, and how has that changed? Find that data and much more in these credit card debt statistics.

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More than 165 million consumers in the US alone have a credit card account. The total credit card debt reached nearly $1 trillion in early 2023, an all-time high. The average credit card interest rate also reached an all-time high of 20.09%[1].

We’ve compiled the latest stats on credit card debt from government and consumer credit reporting agencies to help you better understand the current state of the credit lending industry and its customers.

Key Findings

  • Americans owe a total of $975.59 billion in credit card debt.
  • The total number of active credit cards reached 532.2 million in Q1 2023.
  • The average American has $5,733 in credit card debt.
  • Iowans have the lowest average credit card balance of $4,808 while Alaskans have the highest – $7,338.
  • 82.1 million new credit cards were issued in 2022 – an-all time high.
  • The credit card delinquency rate (90+ days) reached 2.26% in Q1 2023.

US Credit Card Debt by Year

Credit card debt in the US reached $975.59 billion in the first quarter of 2023, a 15.19% year-over-year increase[2].

Pre-pandemic (Q4 2019), Americans owed $845.36 billion in credit card debt.

How Much Credit Card Debt Does the Average American Have?

The average credit card debt per consumer in the US was $5,733 in Q1 2023, 1.24% down from the previous quarter (Q4 2022)[3].

Average Credit Card Debt in the USA in 2024: Facts & Figures
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Experian data suggests a slightly higher average credit balance among consumers in the US – $5,910 (in Q3 2022) and $5,221 (in Q3 2021)[4].

Average Credit Card Debt by State

Iowa had the lowest average credit card balance of $4,808 in Q3 2022, while average credit card balances reached $7,338 in Alaska. All states reported a year-over-year increase in average credit card balances[4]. 

YoY change in credit card debt by state
StateQ3 2022Q3 2021
Alabama$5,364$4,875
Alaska$7,338$6,617
Arizona$5,755$5,061
Arkansas$5,183$4,670
California$6,030$5,154
Colorado$6,274$5,587
Connecticut $6,825$6,052
Delaware$6,015$5,357
Florida$6,408$5,620
Georgia$6,265$5,604
Hawaii$6,343$5,525
Idaho$5,181$4,539
Illinois $6,011$5,315
Indiana $5,017$4,528
Iowa$4,811$4,285
Kansas$5,532$5,029
Kentucky $4,894$4,408
Louisiana$5,577$5,054
Maine$5,078$4,538
Maryland$6,668$5,911
Massachusetts$6,046$5,232
Michigan$5,265$4,661
Minnesota$5,425$4,754
Mississippi $4,912$4,449
Missouri$5,417$4,865
Montana$5,385$4,778
Nebraska$5,312$4,789
Nevada$6,176$5,373
New Hampshire$5,944$5,251
New Jersey$6,819$5,995
New Mexico$5,350$4,821
New York$6,269$5,473
North Carolina $5,658$5,101
North Dakota$5,408$4,874
Ohio$5,320$4,808
Oklahoma$5,654$5,155
Oregon$5,316$4,630
Pennsylvania$5,640$5,026
Rhode Island$5,867$5,153
South Carolina $5,714$5,176
South Dakota$5,071$4,591
Tennessee$5,432$4,891
Texas$6,542$5,820
Utah$5,535$4,831
Vermont$5,159$4,595
Virginia$6,477$5,864
Washington $6,043$5,231
Washington, D.C.$6,904$5,949
West Virginia$5,005$4,574
Wisconsin $4,808$4,329
Wyoming$5,745$5,159

Average Credit Card Debt by Age

Borrowers who are 42-57 years old (Generation X) had the highest average credit card debt: $8,134 (in Q3 2022, 15% up compared to Q3 2021)[4].  

Despite Generation Z typically owing less per borrower ($2,854), younger people under 25 years old saw the biggest year-over-year increase in average credit card debt (+25.1%) than any other age group.

YoY change in credit card debt by age
Generation (age group)Q3 2022 (YoY change)Q3 2021
Generation Z (18-25 years old)$2,854 (+25.1%)$2,282
Millennials (26-41 years old)$5,649 (+23.5%)$4,576
Generation X (42-57 years old)$8,134 (+15%) $7,070
Baby Boomers (58-76 years old)$6,245 (+7.6%) $5,804
Silent Generation (77 years old and over)$3,316  (+4.4%) $3,177

Average Credit Utilization

The average credit utilization rate in the US reached 21.5% in the first quarter of 2023, 1.5% up compared to the same quarter in 2022[5].

Credit Card Originations

Credit card originations (new cards issued) in the US reached 82.1 million (an-all time high) in 2022, showing an 11.7% increase over the past year[6]. 

In 2023, there were reported 6.2 million credit card originations from January to March (7.3% year-over-year growth). 

Credit Card Originations by Credit Score

According to an analysis of credit card originations in the US, the percentage of subprime consumers (with credit scores between 300 and 600) in the total number of credit originations has declined from 22.8% in Q4 2021 to 19.3% in Q4 2022 as lenders minimize risk exposure[5]. 

Prime consumers (661-720) held the largest share (22.3%) as of Q4 2022 compared to other risk tiers.

Credit Card Balances by Generation

Generation X owes the largest share of credit card balances (33.9%), followed by Millennials (28.6%) and Baby Boomers (27.9%)[5].

Credit Card Delinquency Rates

The delinquency rate (30+ days past due) on credit card balances in the US reached 4.17% in the first quarter of 2023, a 0.88 percentage point increase since Q1 2022. That is almost double the 10-year average of 2.28%[5].

Serious credit card delinquencies (90+ days past due) rose to 2.26% in Q1 2023 from 1.61% in Q1 2022.

Historical Credit Card Interest Rates

The average interest rate on credit cards reached 20.09% in February 2023, a record high. Rising rates and rising balances indicate additional stress for consumers and windfall profits for card issuers[7].

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]]> https://finmasters.com/average-credit-card-debt/feed/ 0 How Many Americans Work From Home? 10+ WFH Statistics https://finmasters.com/how-many-americans-work-from-home/ https://finmasters.com/how-many-americans-work-from-home/#respond Fri, 21 Apr 2023 16:00:49 +0000 https://finmasters.com/?p=200425 Working from home is becoming mainstream. These work from home statistics will help you understand how this new trend is developing.

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Before the pandemic, working from home was unusual, with less than 5% of the American workforce working remotely. Now nearly a third of working hours in the US are spent working from home in the US.

Despite the easing of pandemic-related restrictions across the globe, many employers are choosing not to return to the old “normal” office scenario, opting for hybrid or fully remote options instead.

We’ve collected the latest stats on working from home. Let’s dive right in.

Key Findings

  • Around 27.7% of paid working days in the US in February 2023 were spent working from home. That’s up from less than 5% pre-pandemic.
  • In early 2023, around 11% of Americans reported working from home only.
  • Less than 4-in-10 (35.2%) of remote-capable American employees worked only at employers or client’s sites in early 2023.
  • 12.54% of new online job postings in the US advertised remote work opportunities as of January 2023.

How Many People Work From Home?

In February 2023, 27.7% of paid working days were spent working from home among US residents (aged 20 to 64 who earned $10K or more in the prior year). That’s down from the all-time high work-from-home share of 61.5% in May 2020[1].

17.9% of the American employed population worked primarily from home in 2021[2].

Pre-COVID ACS data shows that only 4.7% of US residents aged 20-64 with an annual income of $10K or more worked primarily from home in 2019 (4.2% in 2018)[2].

How many Americans work from home (2011- 2023)

According to the Global Survey of Working Arrangements, workers in Singapore and Canada reported the highest number of paid working days worked from home each week, 2.40 and 2.18 days, respectively[7].

G-SWA findings suggest working from home was least common in Russia, Serbia, Egypt, and Korea (with less than one day worked from home in each country).

Paid Working from Home Days Per Week by Country

Remote vs. Onsite vs. Hybrid Work in the US

According to the February 2023 Survey of Working Arrangements And Attitudes, 11.0% of full-time American employees were fully remote, and 28.2% were in a hybrid work arrangement combining work at an employer or client site and home[1].

The same survey found that 18.1% of remote-capable full-time employees in the US worked from home in February 2023, and 46.6% combined onsite days with WFH[1].

How Many Americans Work From Home?
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Research by Gallup (with survey data up to Q2 2022) suggests that 29% of remote-capable employees opt for exclusively remote work arrangements, with another 49% choosing a hybrid option (with at least 10% of work done remotely)[3].

Where are Most Remote Workers Based?

Based on SWAA findings, working from home is more prevalent in major American cities (with 32.4% of full paid days worked from home in the top 10 largest cities in the country) compared to smaller cities or other less populated locations (outside of the top 50 cities) at 29.4% and 25.0% share, respectively[1].

What City Has the Most People Working From Home?

When ranked by individual city (among 9 select large cities in the US), Los Angeles led February 2023 rankings with a work-from-home share of 35.6%, followed by Miami (35.0%) and San Francisco Bay Area (34.4%)[1].

Work From Home by City in the US
(Among 9 Select Large Cities in the US)

What Industry Has the Most Work From Home Jobs?

Based on the SWAA survey data from September 2022 to February 2023, remote work is most common among employees in the information and finance/insurance sectors, with averages of 2.28 WFH days and 2.14 WFH days per week, respectively.

Working from home is less common among workers in retail trade (0.68 WFH days per week), transportation and warehousing (0.68 WFH days), and hospitality & food services (0.62 WFH days)[4].

Work From Home Figures by Business Sector

How Many People Could be Working From Home?

According to the Gallup survey, 56% of full-time job holders in the US claim that their job can be done working remotely from home[3].

Based on McKinsey American Survey Spring 2022 findings, there was a similar share of remote-capable employees in the US: 58% of employees (92 million people as of April 2022) reported the option to work remotely (at least in partial capacity)[5].

McKinsey survey data suggests that 35% of job holders (55 million people) were offered remote work on a full-time basis, while 23% of American employees (36 million people) were offered remote work for at least part of the time[5].

Growth of Remote Job Vacancies

According to WFH Map data analysis of online job vacancies, 12.54% of US job vacancies posted online explicitly offered hybrid or exclusively remote work as of January 2023[9].

The share of job vacancies in the US saying that the job allows hybrid or fully remote work has substantially increased from 3.53% in pre-pandemic January 2020 to an all-time recorded high of 13.01% in November 2022 to date.

Share of New US Job Vacancies Advertising Remote Work

Why do People Like Working From Home?

According to SWAA data, American employees cited savings on gas and lunch (53.4% of respondents mentioning this benefit among the top ones), no commute (49.2% of respondents), and flexible work schedule (42.9% of respondents) as some of the top benefits of working from home[6].

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]]> https://finmasters.com/how-many-americans-work-from-home/feed/ 0 How Many Americans Have No Health Insurance? https://finmasters.com/how-many-americans-have-no-health-insurance/ https://finmasters.com/how-many-americans-have-no-health-insurance/#respond Wed, 19 Apr 2023 16:00:32 +0000 https://finmasters.com/?p=206597 The high cost of healthcare makes insurance a must for Americans. Find out more about those who still lack this necessity.

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The US has the world’s largest economy, but it still has no universal health insurance coverage, and a part of the population remains uninsured. The number of uninsured people has declined in recent years, but it’s still substantial.

The very high cost of healthcare makes it almost impossible for uninsured people to get care, which is a serious problem.

We’ve collected the latest statistics on the uninsured population in the US from multiple sources. Let’s dive right in

Key Findings

  • 27.2 million Americans have no health insurance
  • Younger adults are at much greater risk of being uninsured than the elderly population.
  • The uninsured rate varies by region in the US, from 2.5% in Massachusetts to 18.0% in Texas.
  • The rate of uninsured people is highest among Hispanic Americans.
  • Most households without health insurance make under $25,000 per year.
  • Affordability is cited as the most common reason (69.6%) for being uninsured in the US.

How Many Americans Don’t Have Health Insurance?

27.2 million Americans had no health insurance in 2021, representing 8.3% of the US population, an all-time low since 2008[1].

8.6% of Americans (28.1 million)  of all ages reported themselves to be uninsured in 2021. The vast majority (66.5%. 18.7 million) of uninsured Americans said they have had no health insurance coverage for a year or more[2].

Share of Uninsured Population (All Ages)

The number of uninsured Americans and the percentage share of the uninsured population since 2008:
YearUninsured Population (All Ages, in Thousands)Share of Uninsured Population (All Ages)
200843,50314.6%
200945,66515.1%
201047,20815.5%
201146,37615.1%
201245,61514.8%
201345,18114.5%
201436,67011.7%
201529,7589.4%
201627,3048.6%
201728,0198.7%
201828,5668.9%
201929,6399.2%
202028,2918.6%
202127,1878.3%

Who Goes Without Health Insurance?

Take a look at what socioeconomic, demographic, and geographic characteristics describe the uninsured population in the US.

Uninsured Population by State

According to Kaiser Foundation Family estimates, uninsured share by state ranges from as low as 2.5% in Massachusetts to as high as 18.0% in Texas.

Among 50 states in the US, 14 have an uninsured population of 10.0% or more of the total (above the US average of 8.3-8.6%). Only 8 states report that 5.0% or less of the population has no health insurance[4].

Uninsured population (incl. share of the total population) by state in the US:
StateUninsured PopulationUninsured Percentage
Texas5,202,50018.00%
Oklahoma531,30013.80%
Georgia1,333,10012.70%
Florida2,588,10012.10%
Mississippi339,30011.90%
Wyoming65,00011.50%
Nevada351,50011.40%
Alaska75,70010.80%
Arizona750,20010.60%
North Carolina1,059,40010.40%
Tennessee686,30010.10%
Alabama489,60010.00%
New Mexico205,80010.00%
South Carolina504,70010.00%
South Dakota81,2009.40%
Missouri557,1009.30%
Arkansas269,3009.20%
Kansas262,3009.20%
Utah299,7009.10%
Idaho159,4008.50%
Colorado451,0008.00%
Montana86,0008.00%
North Dakota56,8007.70%
Indiana494,1007.50%
Louisiana337,0007.50%
New Jersey650,7007.20%
California2,704,3007.00%
Nebraska134,4007.00%
Illinois851,5006.90%
Virginia566,3006.80%
Ohio743,1006.50%
Washington489,1006.50%
West Virginia107,0006.20%
Maryland364,0006.10%
Oregon254,0006.10%
Delaware55,7005.70%
Kentucky244,4005.60%
Maine72,2005.40%
Pennsylvania681,0005.40%
Wisconsin308,4005.40%
New York1,013,2005.20%
Connecticut179,6005.10%
Michigan502,6005.10%
New Hampshire66,9005.00%
Iowa152,8004.90%
Minnesota239,2004.30%
Rhode Island45,1004.30%
District of Columbia23,3003.70%
Hawaii49,8003.70%
Vermont20,7003.30%
Massachusetts165,6002.50%

Uninsured Population by Age

Based on ACS data, younger adults (26-34 years old) in the US tend to be more uninsured than any other age group, with a share of 15.1% without any coverage, while for the elderly population (75 years and older) that’s low as 0.5%[3].

Uninsured population by age group (share of total):
Age groupUninsured PopulationShare of Uninsured Population
Under 6 years1,013,9714.5%
6 to 18 years3,150,7175.7%
19 to 25 years4,135,05414.2%
26 to 34 years 6,011,96115.1%
35 to 44 years5,564,46913.0%
45 to 54 years 4,398,63910.9%
55 to 64 years 3,507,0908.3%
65 to 74 years 335,4821.0%
75 years and older109,4990.5%

NCHS data suggest that 4.1% of children (ages between 0 and 17 years old) are uninsured, while for adults (18-64 years), that’s 12.6% and only 0.5% among those 65 years old and above[2].

How Many Americans Have No Health Insurance? Key Statistics and Facts
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Uninsured Population by Household Income

Most households without health insurance make under $25,000 per year with a 13% share. That share drops with each higher income tier, reaching 4.8% among households with an income of $100,000 or more[3].

Uninsured population by household income (share of total):
Household IncomeUninsured PopulationShare of Uninsured Population
Under $25,00005,124,21413.0%
$25,000 to $49,9996,813,95212.9%
$50,000 to $74,9995,750,75311.0%
$75,000 to $99,9993,760,8188.5%
$100,000 and over6,505,5164.8%

Uninsured Adult Population by Level of Education

Among adults 26 years and over, the ACS report finds that the nation’s uninsured rate highly varies depending on the level of education, from 3.7% among the population who had higher education (Bachelor’s degree or higher) to 22.2% among those who did not graduate high school[3].

Uninsured population among adults 26 years and over by the level of education (share of total):
EducationUninsured PopulationShare of Uninsured Population
No high school diploma5,131,05822.2%
High school graduate6,898,60912.1%
Some college or associate’s degree4,990,7578.1%
Bachelor’s degree or higher2,906,7163.7%

Uninsured Nonelderly Population by Race

A Kaiser Family Foundation report noted that people of color are more likely to be uninsured than White people in the US[4].

Uninsured nonelderly population and rate by race/ethnicity (share of total)
Race/ethnicityUninsured PopulationPercentage of Uninsured PopulationPercentage of Overall Population
White10,639,8007.2%59.3%
Black3,560,10010.9%13.6%
Hispanic10,717,50019.0%18.9%
Asian/Native Hawaiian and Pacific Islander1,063,8006.5%0.3%
American Indian/Alaska Native311,80021.2%1.3%
Multiple Races1,187,0008.3%2.9%

Uninsured Population by Disability Status

The American Community Survey finds nation’s uninsured rate is higher among people with no disability (9.1%) than among those with a disability (5.6%)[3].

Uninsured population and rates in the US grouped by disability status (share of total):
Disability StatusUninsured PopulationShare of Uninsured Population
With a disability 2,392,9295.6%
No disability25,833,9539.1%

Why Are People Uninsured?

Among uninsured adults aged 18-64 in the US, the affordability barrier was the most commonly reported reason for being uninsured (69.6% of respondents cited that reason). Other common reasons included not being eligible for coverage (26.2%) and having a personal preference not to have health insurance (23.5%)[5].

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]]> https://finmasters.com/how-many-americans-have-no-health-insurance/feed/ 0 20+ Gig Economy Statistics for 2024: The State of Gig Work https://finmasters.com/gig-economy-statistics/ https://finmasters.com/gig-economy-statistics/#respond Wed, 12 Apr 2023 16:00:38 +0000 https://finmasters.com/?p=190421 The gig economy is changing the way America works. These gig economy statistics will help you understand it better.

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The gig economy is changing the way people work. From ride-sharing companies like Uber and Lyft to delivery specialists like Instacart and DoorDash to Airbnb, Upwork, Fiverr, and many more, millions of people worldwide are turning to online platforms to supplement their income and even build new careers.

But what is the current state of the gig economy in the US?

This gig economy statistics roundup should give you a better idea of how many gig workers there are, how much they’re making, who they are, and what type of activities they are working on.

Key Findings

  • 16.4% of the American workforce is made up of gig workers.
  • 30% of younger US adults (ages 18-29) have made money through gig work at some point.
  • There are 9.94 million self-employed people in the US as of January 2023.
  • Almost half (47%) of gig workers in the US have full-time jobs.
  • 1099-MISC contractors in the US made on average $6,810 per month (vs. $6,340 among W-2 employees).
  • Flexibility and supplemental income are one of the most common reasons for taking up gig work.
  • 24% of gig workers lack health insurance, and 29% earn less than their state’s minimum wage. Workers often lack important benefits and protections.

What Percent of US Workers Participate in the Gig Economy?

8.5% of the American civilian workforce is made up of gig workers, accounting for 14 million American adults (out of a total of 165 million Americans in the civilian workforce)[2].

16% of American adults have reported having earned money on online gig platforms at some point. 9% of adults have reported gig platform-related income in the past 12 months (survey conducted in August 2021)[1].

Gig Economy Statistics
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How Many Americans Are Self-Employed?

Based on the latest count in January 2023, 9.94 million people in the US are reported by the Bureau of Labor Statistics to be self-employed. That’s an increase of 397 thousand self-employed people since 2019[5].

Self-Employed People in the US

Note: * In Thousands of Persons
** Incomplete data for 2023, only includes January 2023.

Gig Work Demographics

Gig Workers by Age

Experience taking up gig work is most common with younger adults, with 30% of respondents ages 18-29 years old in the US claiming to make money this way at some point, followed by an 18% participation rate in the age group of 30 to 49 years old. Less than 1 in 10 (7%) adults older than 65 reported participating in the gig economy at some point[1].

Gig Work Participation in the US by Age

Gig Work Participation in the US by Income Level

Gig Workers by Income

Gig work is more popular among lower-income earners than it is among middle-income earners or upper-income earners. While 25% of lower-income earners (with a family income of less than $42K) have participated in the gig economy, only 13% of middle-income earners ($42K-$125.9K) did so, and 9% of upper-income earners (over $125.9K) made money through online gig platforms[1].

Gig Workers by Gender

In the 2021 State of Gig Work report from Pew Research, 17% of female American adults reported having earned money from gig platform work at some point, while 15% of male US adults said they had earned money this way[1].

Gig Workers by Gender

Gig Work Participation in the US by Race

Gig Workers by Race

Hispanic adults in the US lead the way in gig work participation, with 30% reporting earnings from gig platform work, followed by 20% of Black adults, 19% of Asian adults, and 12% of White adults in the country[1].

Gig Work by Industry

The recreation and construction industries in the US are leading the way with the highest share of gig workers, 38% and 33%, respectively, followed by business services, where one-third are employed as gig workers, not as traditional W-2 employees.

The manufacturing sector uses the lowest number of gig workers, with only 2% of the workers employed as 1099-MISC contractors or short-term W-2 employees[3].

Gig Worker Share in the US by Industry

Gig Worker Income by Industry

Gig workers reportedly bring in from $1,080 to $11,130 in average monthly income depending on the industry, with mining paying the most ($11,130) for 1099-MISC workers and manufacturing ($3,180) leading the way for short-term W-2 employees[3].

Gig Worker Income in the US by Industry

Gig Work as a Main or Side Job

Pew Research reports that gig work has been a side job for nearly 7 in 10 (68%) recent gig workers in the US, while only one-third (31%) claim it was their main source of income[1].

According to Federal Reserve data, nearly half (47%) of gig workers in the US also had full-time roles, while 22% were employed on a part-time basis. Only 11% of American gig workers are reported to make at least 50% of their income from gigs[6].

Reasons for Taking Up Gig Jobs

According to a Pew Research Center survey, more than half of gig platform workers report taking up gig jobs due to income-related reasons, particularly “wanting to save up extra money” (56%) and “needing to cover gaps, changes in income (52%)”[1].

Other common reasons for participating in the gig economy include the ability to control their schedule (49%), and wanting to be their own boss (35%)[1].

Based on ADP insights, work-life balance (44%) and enjoyment (38%) are the top reasons to work among 1099-MISC contractors in the US. For employees in traditional work arrangements, benefits (51%) and financial security (40%) are the driving factors[3].

Types of Gig Work in the US

Due to the lack of a common definition for gig work, some researchers include gig work completed offline and online (as in the case of the Federal Reserve), while others, like the Pew Research Center, focus primarily on online platform work.

Based on the Federal Reserve’s analysis of sales activities, 9% of American adults sold goods online, while another 5% sold goods at flea markets as gig workers. A total of 13% of adults performed some type of sales activity as gig workers[6].

Types of Gig Work Activities (sales activity)

According to the same analysis looking into service activities, 16% of gig workers completed some work related to service, including 6% for house cleaning, and property maintenance, and 3% for childcare or eldercare services[6].

Types of Gig Work Activities (service activity)

When looking specifically into online gig platforms, the largest share of Americans reported making deliveries (7%), performing household tasks (6%), or driving for a ride-hailing app (5%) as one of the most common gig tasks[1].

Types of Gig Work Activities (online gig platforms)

Gig Worker’s Benefits and Protections

The gig economy offers workers a high degree of flexibility, but workers in the gig economy may lack access to important benefits associated with traditional employment.

  • 24% of gig workers reported having no health insurance, with 58% of those citing prohibitive cost as an obstacle[7].
  • 48% of gig workers say their employment status impairs their access to health insurance[8].
  • Only 21.9% of nontraditional workers participated in an employer-sponsored retirement plan in 2020[9].
  • 14% of gig workers earned less than the Federal minimum wage on an hourly basis. 29% earned less than their state’s minimum wage [10].
  • 19% of gig workers reported going hungry because they couldn’t afford food, and 30% used Supplementary Nutritional Assistance Program (SNAP) benefits, twice the rate of regular workers[10].
  • 37% of gig workers reported being treated rudely. 35% have felt unsafe while working, and 19% have experienced unwanted sexual advances while working[1].

According to the Economic Policy Institute, gig workers lack overtime pay, unemployment insurance, health and safety protections, and the right to a union. The lack of paid sick days, family leave, and vacation time can lead to overwork and burnout[10].

Conclusion

The gig economy offers both advantages and disadvantages to workers. Flexibility, the ability to control schedules, the ability to supplement conventional earnings, and being your own boss are among the primary advantages.

On the downside, gig workers may lack important benefits like health insurance and employer-sponsored retirement plans, and they may have to manage more complex tax situations. Workers can manage these issues on their own, but it takes extra effort. Gig workers in less skilled occupations sometimes take on sub-minimum wages just to gain experience, with little protection from exploitative practices.

The gig economy offers both positives and negatives, but for better or worse, it’s here to stay!

The post 20+ Gig Economy Statistics for 2024: The State of Gig Work appeared first on FinMasters.

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