The Rise of Gig Workers and Self-Employment on Long Island: A Boost to the Local Economy

The landscape of work is changing dramatically, and Long Island is at the forefront of this transformation. In 2023, the surge in gig workers and self-employed individuals has significantly bolstered the local economy, contributing over $25.25 billion in income from sales and revenue. This article delves into the factors driving this growth, the sectors most affected, and the implications for the future of work on Long Island.

Understanding the Gig Economy

Gig workers encompass a diverse range of professions, including freelancers, delivery drivers, landscape workers, and other sole proprietors who operate without paid employees. According to recent data, gig workers constitute approximately 86.4% of all nonemployer establishments on Long Island. This term refers to unincorporated businesses that do not have payroll, making it a vital dataset for understanding the gig economy’s dynamics. In 2023, around 327,000 such businesses were registered on Long Island, marking a remarkable 23.1% increase from 263,557 in 2015.

The Impact of Real Estate

Real estate stands out as the largest sector for self-employed individuals on Long Island, with over 55,000 registered unincorporated businesses. According to 2023 federal tax records from the U.S. Census Bureau, this sector generated nearly $7 billion in revenue, reflecting the region’s soaring home prices. This figure includes the fees and commissions earned by real estate agents and brokers, excluding firms that employ staff. The booming real estate market not only highlights the demand for housing but also underscores the opportunities available for self-employed professionals in this sector.

Transportation and Warehousing: A Rapid Growth Sector

The transportation and warehousing sector has experienced the most significant growth among gig workers, with a staggering 270% increase in registered unincorporated businesses. This sector includes taxi service providers like Uber and Lyft drivers, food delivery agents, and tour guides. In 2015, there were 10,895 such businesses generating approximately $611.7 million in income. By 2024, this number surged to 40,387, with recorded income exceeding $1.85 billion. This growth reflects the changing consumer preferences towards on-demand services and the increasing reliance on gig workers for transportation and delivery needs.

Professional Services: A Steady Contributor

Following transportation and warehousing, the professional services sector ranks as the second-largest area for self-employment on Long Island. This broad category includes lawyers, accountants, photographers, tutors, wedding planners, and various other independent service providers. In 2023, there were 54,797 registered unincorporated businesses in this sector, generating $4.12 billion in income. This represents a 16.9% increase in the number of businesses since 2015, when the reported income was $2.57 billion. The steady growth in this sector indicates a robust demand for specialized services and expertise.

Construction: Meeting Rising Costs

As home prices continue to rise, so too do the costs associated with maintaining them. The construction sector, which includes a significant number of self-employed individuals such as plumbers, electricians, and masons, has seen a 53% increase in revenue, climbing from $1.38 billion in 2015 to $2.11 billion in 2023. This sector accounts for approximately 24,332 registered independent businesses, reflecting a 16.5% increase from 23,366 in 2015. According to the National Association of Home Builders, construction costs have risen from comprising 60.8% of the average price of a new home in 2022 to 64.4% in 2024, further driving demand for skilled tradespeople.

Conclusion: A New Era for Long Island’s Workforce

The rise of gig workers and self-employed individuals on Long Island is reshaping the local economy, creating new opportunities and challenges. With significant contributions from sectors like real estate, transportation, professional services, and construction, the gig economy is proving to be a vital component of Long Island’s economic landscape. As this trend continues, it will be essential for policymakers, businesses, and workers to adapt to the evolving nature of work, ensuring that the region remains vibrant and competitive in the years to come.

For those interested in shaping the future of Long Island, initiatives like nextLI provide a platform for community engagement and discussion. Join the conversation at newsday.com/nextLI/talkLI and be part of the movement towards a thriving, self-sufficient economy.