Calling an Uber, ordering Doordash and getting groceries delivered through Instacart are all examples of the many industries that rely on gig workers—employees who earn income outside of full-time employment. With more than 25% of the American workforce participating in the gig economy, this style of employment has become an economic force, particularly in recent years. Rideshare drivers and virtual assistants are now a backbone of daily life. In the heartland, where economic shifts and rural geography shape employment choices, gig work is increasingly essential. 

Success of the Heartland’s Gig Workers

Gig work is popular because of flexibility and flexibility allows gig workers to support multiple sectors, from delivery and transportation to tech support and creative work. Arkansas and South Dakota rank in the top ten states for overall gig worker employment, based on opportunity,  competition and the robustness of the gig worker environment. 

Heartland Gig Worker Data 

• South Dakota gig workers earn the second highest average annual earnings out of the 50 states.
• Mississippi and South Dakota have the lowest gig worker competition, creating larger market access for workers which allows gig workers to capitalize on more working opportunities.
• Mississippi, North Dakota, South Dakota and Arkansas have the highest projected gig worker growth based on environment factors and opportunity & competition.
  • Gig work environment factors: examples include cost of living in each state and the average cost of insurance in each state
  • Gig work opportunity & competition factors: examples include gig worker per capita in each state and the growth rate of gig workers in each state from 2021 to 2023
• Indiana and Kentucky have the highest customer tipping rates, which is an incentive for workers to join the gig economy.

As states increasingly acknowledge the important role of gig workers in the economy, they are creating state policies that support these employees and attract additional talent to local communities. Take a look at what several heartland states are doing.

• Missouri is the most recent heartland state to pursue opportunities to support the gig economy. The state piloted an innovative policy, using artificial intelligence, to help Department of Social Services (DSS) caseworkers verify gig worker incomes. The goal of this program was to lighten casework, prevent fraud and create efficiency in DSS, while providing benefits more quickly to constituents. After a successful pilot round, Missouri partnered with SteadyIQ to permanently support DSS caseworkers and gig workers alike, connecting eligible gig workers to resources like Medicaid, SNAP and TANF after verifying applicants’ incomes.
• Wisconsin is one of a handful of states that is experimenting with flexible and portable benefit accounts which can be contributed to by companies and then utilized for things like paying for health insurance, paid time off or retirement. In May of this year, Wisconsin’s state legislature introduced legislation that aims to provide these portable benefits to app-based drivers. 
• Minnesota also passed a law in 2023 which increased compensation for rideshare drivers. While the bill was vetoed given concerns about consumer pricing, Governor Walz subsequently created a commission to make policy recommendations on how best to support rideshare drivers. In 2024, Governor Walz signed a bill to raise the wage of rideshare drivers in the state, underscoring their ever growing economic importance.

Flexible work is here to stay, and when supported wisely, it can be an engine of regional resilience.