Drive On-Demand Services Fuel Capital Region Gig Economy Growth

The Capital Region’s ranks of gig workers increased by nearly 2,000 in 2023 as more people delivered packages for online companies and rented real estate, according to a Center for Economic Growth (CEG) analysis of new data from the U.S. Census Bureau Nonemployment Series.

In 2023, the eight-county region had 83,199 nonemployer establishments, which include freelancers, independent contractors and others who do not have any employees and have more than $1,000 in annual receipts. That was 1,948 (2.4 percent) more nonemployer establishments than the previous year. The region’s nonemployers in 2023 reported $4.67 billion in sales, value of shipments or receipts, up 3.7 percent from the previous year.

The industry that drove the most growth in Capital Region nonemployers was couriers and messengers, which increased over the year by 488 (10.4 percent) to 5,199. In fact, over the last 10 years, the region has seen a 9-fold increase in couriers and messengers nonemployer establishments.

Almost half of this industry’s nonemployer growth (46 percent) was concentrated in Albany County. This industry likely received a boost from Amazon’s fall 2022 opening of last-mile delivery station on Mustang Drive – its second last-mile operation to open in Colonie since 2020. Both last-mile facilities leverage Amazon Flex drivers who are independent contractors who use their own packages to deliver packages. The couriers and messengers industry also includes drive on-demand independent contractors, such as those associated with DoorDash and GrubHub.

Other industries that boosted the region’s ranks of gig workers over the year included lessors of real estate (+200); office administrative services (+199); independent artists, writers, and performers (+181); and services to buildings and dwellings, such as janitorial and landscaping (+134).

CEG INITIATIVES

As a Manufacturing Extension Partnership (MEP) center, CEG’s Manufacturing Solutions also helps Capital Region manufacturers increase their productivity by providing a menu of technical support services, such as Lean Enterprise Training, ISO Certification Assistance, Technology-Driven Market Intelligence, and CoreValue benchmarking assessments.

In 2023, CEG Manufacturing Solutions had the following impacts on Capital Region manufacturers:

• $17 million in new and retained sales
• 115 jobs created and retained
• $10 million in new investments
• $600,000 in cost savings

CEG also drives the Manufacturing Solutions Network, a network brings together Capital Region manufacturers to learn from experts on industry relevant topics, participate in thematic roundtables, discuss common issues, and expand their network.

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