The Future of Employment - 30 Telling Gig Economy Statistics

The Future of Employment - 30 Telling Gig Economy Statistics
ByDamjan Jugovic Spajic
May 26,2021

The latest gig economy statistics tell us that times aren’t just changing - they’ve already changed. Gone are the days of working from nine to five in a cradle-to-grave job. Nowadays, it’s increasingly common to piece together an income from several different sources and work when you want, not when your boss tells you to.

The proliferation of freelancing and gig work - especially through major gig economy employers such as Uber, Lyft, Turo or Fiverr - shows this. We’re witnessing a massive shift from traditional work and full-time employment to freelancing, working part-time, and independent contracting. This is often referred to as the gig economy.

So, how can we define the gig economy? Broadly speaking, the gig economy is a free-market system in which companies look to work with independent contractors or freelancers as opposed to hiring full-time workers. The ‘gig’ part of the name refers to the dominant model of work in this economy, where workers are employed and paid per job or project.

In this economy, workers have temporary or part-time positions, allowing them to frequently change employers or work for several different businesses at the same time. The rise of this economy is closely connected to advances in technology and the trend of working remotely as so-called digital nomads. This provides even more flexibility for both freelancers and clients.

We’ve compiled some interesting gig economy statistics to paint a better picture of what work looks like nowadays.

Gig Economy Statistics - Editor's Choice

  • About 36% of US workers are part of the gig economy.
  • 12% of the US workforce started taking freelance jobs during the pandemic.
  • 10% of the US workforce was forced to pause freelancing because of the global health crisis.
  • 86% of freelancers think the industry has an even brighter future ahead of it, despite the health crisis.
  • If the gig economy keeps growing at its current rate, more than 50% of the US workforce will participate in it by 2027.
  • In 2018, US independent workers spent a billion hours per week freelancing.
  • 41% of postgraduates freelance.

The Size of the Gig Economy

Roughly 36% of US workers are part of the gig economy, either through their primary or secondary jobs.

(Gallup, Statista)

So, how big is the gig economy in the US? It’s hard to know for sure, especially when people do freelance work in addition to their main job. The variance in how we define gig work doesn’t help, either.

Statistics provided by the Bureau of Labor show there were 55 million US gig workers in 2017. The most recent and reliable data is from a Gallup poll on the gig economy presented in the company’s Gig Economy and Alternative Arrangements study. This study revealed that more than a third of all US workers - around 57.3 million people in total - were employed as independent workers before the global health crisis struck. At the start of the COVID-19 pandemic, 52% of worldwide gig economy workers lost their jobs due to the economic downturn. Meanwhile, 26% had to settle for reduced working hours.

40% of US-based workers generate a large part of their income via the gig economy.


Data from the latest Gig Economy Index shows that around 40% of US workers generate 40% of their income by freelancing. This shows how much people depend on the gig economy financially, with many forced to do gig work in addition to their regular job to make ends meet. Many earn extra income by driving an Uber or working for one of the other top gig economy companies.

The number of freelance workers kept growing until the COVID-19 pandemic struck.

(Wonolo, MBO Partners)

Based on the information published by Wonolo, the total number of freelancers in the US increased by 4.2% in 2017, compared to 1.3% in 2015. However, the MBO Partners’ report revealed the number of full and part-time gig workers with consumers as primary customers decreased by 34% at the start of the global health crisis in 2020.

US independent workers spent more than a billion hours per week freelancing pre-COVID-19.


According to a freelance industry report provided by Upwork and the Freelancers Union, employee monitoring data shows that freelancers spent a total of 1.07 billion hours per week freelancing pre-pandemic.

The gig economy is expanding three times faster than the US workforce as a whole.

(Forbes, Upwork)

Upwork statistics show that the number of independent workers is growing three times faster than the total US working population, which indicates a bright future for the gig economy. Moreover, compared to non-freelancers, independent workers are better equipped to weather the coronavirus storm.

US freelancers contributed $1.21 trillion to the American economy in 2020.

(MBO Partners)

The MBO State of Independence report points out that the revenue generated by both full and part-time independent workers during last year equates to about 5.7% of US GDP. This is partly thanks to advances in technology and connectivity, which enable freelancers to tap into markets across the globe.

In 2013 alone, micro-businesses owned by freelancers generated $2.4 trillion.


Freelance workforce statistics published by the Association for Enterprise Opportunity demonstrate just how much freelancer-owned businesses contribute to the US economy. In 2013, micro-businesses owned by freelancers generated $2.4 trillion dollars, which made up 17% of the USA's GDP at the time.

Recent forecasts put the number of freelancers in the US at 86.5 million by 2027.

(Wonolo, Statista)

According to gig economy facts provided by Wonolo and Statista, more than half of the country’s workforce will be doing some form of freelance work in the coming years if growth trends persist.

Job Security and Satisfaction in the Gig Economy

A growing number of independent workers are increasingly comfortable in the gig economy, with approximately 56% saying they feel more financially secure.

(MBO Partners)

Gig economy statistics from 2020 provided by the MBO’s State of Independence show that more than half of the full-time independent workforce feels more financially secure than they would in traditional jobs. Although financial security is one of the most important factors when it comes to employment, job security and medical coverage are often big concerns for freelancers.

51% of freelancers would not go back to traditional work for any amount of money.


An Upwork study entitled “Freelancing in America” found that more than half of freelance workers are highly optimistic about the future and would not go back to traditional employment, no matter how much money was on offer.

11Millennials are fueling the expansion of independent work and account for 33% of all freelancers.

(MBO Partners)

Between 2011 and 2020, the percentage of millennials making up the independent workforce grew from just 12% to a full third. Another 26% of freelancing jobs in the USA are held by Boomers, while Gen X accounts for 25% of the independent workforce. Gen Z only makes up 16% of the total, but as the newest generation to enter the workforce, it’s expected to establish itself as the most entrepreneurial generation ever.

84% of freelancers are living their preferred lifestyle compared to just 54% of those working in traditional jobs.


It seems most workers now prioritize lifestyle over earnings. Striking the right balance appears to be much easier for freelancers than it is for those working full-time jobs.

78% of gig workers say they’re happier than those working traditional jobs, while 68% say they’re healthier.


McKinsey gig economy research also reveals that freelancers seem to be happier and feel healthier than their full-time counterparts. As far as income security and benefits go, freelancers are as satisfied as traditional workers.

One in six traditional job workers would like to become an independent earner.

(McKinsey, Upwork)

In its Independent Work study, Mckinsey found that a substantial number of traditional job workers in the US and five other countries would like to become primary independent earners. Meanwhile, according to Upwork’s report, 64% of freelancers say that professionals who are at the top of their industry are increasingly switching to working independently. The data only serves to highlight the growing popularity of freelance work.

Those who work in the freelance economy by choice are the most satisfied group within the workforce.


McKinsey’s survey examined satisfaction levels among different workforce groups. The main parameters were whether they were traditional or independent workers and whether this was by choice or necessity. Of all the demographics covered, independent workers who switched to the gig economy by choice were the most satisfied with their working arrangements.

About 59% of male gig workers and 74% of female freelancers say they enjoy working independently because of the flexibility this type of work offers.

(MBO Partners)

Freelance statistics show that the majority of independent workers aim to stay independent. 54% of men and 43% of women earn more money working as freelancers.

The percentage of independent workers who freelance by choice rose from 55% to 67% between 2011 and 2019.

(MBO Partners)

This trend was disrupted in 2020 with the start of the COVID-19 pandemic when the percentage of gig economy workers who said they were freelancing by choice fell to 59%. This was the same level recorded in 2016.

The mean freelance hourly rate ranges from $10 to $28 worldwide.


Payoneer’s 2020 Income Survey shows that hourly rates for freelancers fall between $10 and $28 in the most popular fields, with the average income for freelancers being $21. In all cases, this average is significantly higher than the national average in the respondents’ home countries. These freelance rates go some way to explaining why people begin to freelance or switch completely to the gig economy.

66% of full-time freelancers work as independents in order to be their own boss.


Some of the key reasons for freelancing include the ability to work remotely, schedule flexibility, extra money, and independence. Many freelancers also like being their own boss. This is the case with 66% of full-time freelancers who are part of the gig economy as well as 61% of those engaged in part-time freelancing.

The Gig Economy and Tech

More than 70% of freelancers find jobs through online markets and gig economy websites.


The internet has played a huge role in freelancing and the growth of the gig industry. Payoneer’s Freelance Income Report shows that more than 70% of all freelancers find projects through gig websites. Some of the biggest websites that provide gig work are Upwork - which has over 15 million users - as well as Fiverr and Toptal.

Approximately 77% of freelancers say technology makes it easier to find work.


Most freelancers believe that technology, mainly through gig economy platforms such as Upwork, makes finding work much easier.

53% of young adults in the US use a smartphone to search for a job.

(Federal Reserve Bank St. Louis)

Research by the Federal Reserve Bank of St. Louis shows that people aged between 18 and 29 are 53% more likely to use a smartphone to find a job. For US adults as a whole, that figure is 28%.

34% of freelancers use Facebook for self-promotion.


Drawing from Payoneer’s gig economy statistics, we can see that more than a third of freelancers in the US use Facebook to promote their work. These numbers are similar to the ones reported in 2018. It seems that freelancers enjoy being their own bosses and doing their own PR work.

Global Gig Economy Stats

20-30% of the workforce in the US and EU-15 area countries is part of the gig economy.


That’s up to 162 million working-age people across the US and the EU-15 who are involved in some sort of independent work.

The gig economy in the UK doubled in size between 2016 and 2019, accounting for 4.7 million workers.

(The Guardian)

The UK seems to be following in the footsteps of the US in terms of gig economy growth, with Britain’s freelancer economy experiencing a significant expansion in recent years. Millions of workers - or one in 10 working-age adults - were part of the gig economy prior to the pandemic. The most recent disruptions in the labor market are only increasing people’s reliance on freelance work.

The number of freelancers has increased by 24% between 2008 and 2015.


According to the Association of Independent Professionals and the Self Employed, the number of independent workers in the European Union rose by 24% between 2008 and 2015, jumping from 7.7 million to 9.6 million.

The Impact of COVID-19 on the Gig Economy 

Nine out of 10 independent workers in the UK say they are worried about the financial impact of the pandemic.


Global economic uncertainty has had a direct impact on the real estate market. Gig economy facts reveal that one in four freelancers who said they are not planning to buy a home in the next five years decided to wait because of concerns over the COVID-19 health crisis.

Approximately 10% of the US workforce was forced to pause freelancing due to the pandemic.


These workers were typically working in industries most impacted by social distancing rules and didn’t have an opportunity to work remotely. About 41% said they were freelancing less than once a month.

About 12% of the US workforce started taking freelance jobs during the pandemic. 


There’s no doubt that the gig economy is here to stay. Although gig workers in certain fields had to pause, others were presented with an opportunity to work independently as a result of the global health crisis. Technology and automation professionals, digital customer experience, and virtual assistants are in high demand. The most frequently stated reasons that these workers give for starting freelance jobs include financial stability during the recession (75%) and necessity (54%).

61% of US workers who freelanced pre- and during the coronavirus pandemic say they have had the amount of work they want or even more.


Independent workers have reported a lower negative impact from COVID-19 on their lifestyle, mental health, financial situation, and overall well-being. Still, given the greater emphasis on remote work and outsourcing, many freelancers had to adjust their business development and networking strategies.

Three in 10 freelancers in the United States have applied for financial support.


Despite having an already established remote lifestyle, 30% of US freelancers said that the opportunity to get financial support during the pandemic was very useful for their business.

The Future of the Gig Economy

86% of freelancers think the industry has a bright future, despite the health crisis.


According to Upwork’s comprehensive Freelancing in America survey, 86% of all independent workers in the US believe the gig economy will only improve as time goes by. That sentiment is shared by 90% of new freelancers.

41% of those with a postgraduate education freelance.


Upwork’s research on gig economy trends shows that those with a postgraduate degree are best represented among freelancers, with 41% of them engaged in independent work.

Millennials will make up 75% of the global workforce by 2025.


In the coming years, millennials will account for much of the world’s workforce. When we consider that young people freelance more than any other generation, this may signal another boost for the gig economy as a whole.

80% of large US companies plan to increase their reliance on a flexible workforce.


According to the Intuit 2020 report on the future of gig work, more than 80% of large corporations plan to change their recruitment strategies and use more non-traditional workers in the coming years.

Final Thoughts

Is freelancing on the rise? The stats say yes. There are more people doing gig work, both in the US and elsewhere. Companies are increasingly working with freelancers, the gig economy pumps a significant amount of revenue into the US economy, and most freelancers seem happy with the state of the market. As our gig economy statistics show, the coronavirus pandemic has only accelerated the growth of the freelance market. If current trends persist, the gig economy will continue to expand rapidly. Soon, it could even overtake the traditional job market.

Frequently Asked Questions
How big is the US gig economy?

The Bureau of Labor statistics on the gig economy show that there were 55 million workers in this market in 2017. According to the latest and most reliable stats, there are now 57 million gig workers in the US economy, accounting for 36% of all US workers.

Why is the gig economy growing?

There are several reasons the gig economy continues to grow. On one hand, workers, especially younger ones, seem to prefer freelancing over full-time employment because of the flexibility and independence it provides. Non-traditional employment, especially through leading gig economy websites, allows them to choose where, when, and for whom they work. At the same time, companies can benefit from having a flexible workforce; they spend less money on training or recruitment, usually don’t pay for any medical coverage, and can more easily replace their workforce if needed.

Is the gig economy a good thing?

Workers, both young and old, seem to prefer the benefits of being independent. After all, those who work in the gig economy can determine their own working hours, choose which jobs to take, and decide which clients to work for. Companies, too, can enjoy the advantages of this agile labor market. Those that hire independent contractors can change their staff more easily and greatly reduce their recruitment and training costs.


About the author

Damjan won’t tell you how to run your business, but he will try to advise you on how to save your money and avoid financial ruin. As a staff writer at SmallBizGenius, he focuses on finding the most consumer-friendly services available and provides advice to both established and fledgling businesses out there.

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An astounding 60 percent of contacted prospects agree to buy a product or service during the fifth call, according to sales follow-up statistics compiled by the US consulting company, Invesp.  57% of people prefer buying from sales representatives that do not hassle them. (Invesp) Even though follow-ups are essential for convincing customers to purchase your product, more than half of the respondents said they prefer buying from sales representatives who aren’t too pushy. Salespeople have a reputation for hassling potential consumers, and these figures show that they would improve their chances of making a sale if they change their approach.  70% of businesses agree that retaining customers is cheaper than acquiring new ones.  (Invesp) Prospecting statistics reveal that even though most newly established businesses have to focus on acquiring new customers, the long-run focus should be on retaining them. Namely, it costs five times as much to gain a new buyer than to keep an existing one. Unfortunately, despite the convincing figures in favor of focusing on retention, only 40% of companies and 30% of agencies cultivate the same approach to acquisition and retention.  The American auto industry was showing signs of recovery in the summer of 2021, with nearly 1.2 million cars sold in July. (Goodcarbadcar) Following a sharp decline that saw sales plummet from 17 million in 2019 to just a little over 14.5 million in 2020, the car industry started showing signs of recovery by mid 2021. But according to United States car sales statistics, the positive trend failed to extend into the spring, with only 589,743 automobiles sold in October. Those are the lowest monthly sales figures in years.  California accounts for the highest number of car sales in the US. (Statista) Research from 2019 shows that the state of California registered more than 14.8 million automobiles that year alone. The state is also the biggest market for electric vehicles, plug-in hybrids, and for used car sales. Statistics by state reveal that Texas had the second-highest number of automobile registrations, with just over 8.3 million cars registered. Texas is followed by Florida (7.8 million) and New York (4.4 million). Handgun sales in the US in 2020 rose by 65% compared to 2019. (Statista) The US gun industry is having a good pandemic, with Americans buying handguns in record numbers. Research shows that in October 2020, around one million handguns were sold, marking a 65% increase compared to the same period in 2019. Gun sales statistics also reveal a spike in handgun sales in June 2020, when 1.511.710 items were sold. The American trade book market recorded a 9.7% increase in revenue in July 2021. (Association of American Publishers) During the pandemic-induced global lockdowns, many people turned to books. Perhaps unsurprisingly, book sales generated $750.7 million in revenue in July 2021. Reading once again became a favorite pastime in many American households, who contributed to the 9.7% growth in this sector, compared to July of 2020.  According to book sales statistics, eBook revenues in July 2021 went down 16% compared to the same period last year. Meanwhile, Paperbacks went up by 30%, generating $274.3 million in revenue. Video game sales amounted to $4.93 billion in July 2021, marking a 5% year-over-year increase. (Statista) Video games had a huge 2020 with more people than ever buying and playing games during the pandemic. Sales soared to $177.8 billion - an increase of 23.1% from 2019. The future looks equally promising, with some forecasts suggesting that the global gaming market will be worth $268.8 billion by 2025. Video game sales statistics for the US market in 2021 show that the industry is maintaining its upward trajectory. 2020 has seen a significant decline in draft beer sales, while canned beer sales went up. (NBWA) The forced closures of bars and restaurants during the pandemic had a significant impact on alcohol sales. Draft beer’s share of total volume declined from 10% in 2019 to around 6% in 2020. Beer sales statistics also show that demand for canned beer rose from 60% in 2019 to 67% in 2020. At the same time, sales of beer in glass bottles remained relatively unchanged, accounting for 29% of the market share in 2019 and 28% in 2020. Toilet paper sales in the US spiked by 845% in 2020. (Business Insider) Toilet paper hoarding in 2020 resulted in a spike in sales of 845% in March 2020, compared to 2019, with a total of $1.45 billion sold in a single month. In March 2020, 73% of all grocery stores ran out of toilet paper. By May, that figure dropped to 48%. Toilet paper sales statistics in 2020 exposed a somewhat disturbing and equally commercial side of consumer behavior in times of crisis.  Girl Scout cookies sales amount to around $800 million during each cookie season. (Girl Scouts) Selling Girl Scout cookies has been a tradition in the US since 1912 and has become a lucrative business for many. Girl scouts sell about 200 million boxes of cookies each season and earn nearly $800 million in revenue. According to mouth-watering girl scout cookie sales statistics, the most popular variety is Thin Mints, followed by Samoas, Caramel deLites, and Tagalongs/Peanut Butter Patties.  Sales: the Bottom Line In the choppy waters and hazy horizons of the pandemic-hit world, steering your business in the right direction isn’t easy. There are many challenges facing sales teams and managers, especially when it comes to locking down customers and promoting products and services. On the other hand, some industries are doing better than ever. Business sales statistics show that demand for canned beer, video games, and guns has never been higher. But that doesn’t change the fact that the future is uncertain for everyone, and the new business world is yet to shape out.
By Danica Djokic · November 10,2021
Victimless crimes without bloody traces, fingerprints, or mysteries worthy of Hercule Poirots’ insights and findings don’t shake the public too much. People don’t usually expect white-collar office workers with their noses buried into piles of papers to keep dark secrets. Despite that, white-collar crime statistics show the seriousness of this problem, which can have devastating consequences on businesses and enterprises.  Money laundering, embezzlement, financial statement frauds, check or payment tampering are among the most common crimes committed by white-collar workers. We compiled data regarding those felonies to help you learn more about white-collar corporate crimes.  White-Collar Crime Stats: Editor’s Choice Only 28% of white-collar employees involved in corporate crimes are women. A typical white-collar felon is a married male in his forties.   White-collar crimes cost the United States over $300 billion per year. Only 6.1% of corporate criminals come from an unhealthy family background. Only 9% of frauds happen in nonprofit organizations. Corruption accounts for 43% of white-collar crimes and causes a median loss of $200,000 per case.  The maximum prison sentence for insider trading in the US is 20 years. White-Collar Crime Demographics: Who Commits the Crimes? Only 28% of white-collar employees involved in corporate crimes are women. (2020 Global Study on Occupational Fraud and Abuse) If there has ever been a need to draw a forensic sketch of a typical corporate criminal for identification purposes, it very likely wouldn’t be a woman. Detailed research into the demographics of white-collar criminals showed that women are very rare corporate crime offenders, accounting for only 27% of committed frauds. The fact that a vast majority are men is understandable given the disproportion of females in higher management positions at corporations. Corporate crime statistics reveal that a typical white-collar felon is a married male in his forties. (Bajoka) (University of Cincinnati School of Criminal Justice) The typical white-collar criminal doesn’t look any different than the co-workers you sip your morning coffee with. He is likely in his mid-forties, though some start earlier. He doesn’t have a criminal record and hasn’t committed any criminal acts until his late 30s. Most of them boast at least a Bachelor’s degree and belong to the professions not so often associated with illegal activities: lawyers, financial advisors, accountants, and clergy members. Some companies use employee tracking software to get a better insight into their workforce, but these felons are usually in positions of power, where they don’t get tracked or at least know how to circumvent it.  Statistics of white-collar crime in the US show 35.3% of felons have more than $10,000 in assets. (University of Cincinnati School of Criminal Justice) As we can see from the statistics gathered in the research commissioned by The University of Cincinnati School of Criminal Justice, over a third of white-collar criminals are well-established in the society, with more than $10,000 in assets. 63.5% have residential stability, and out of that number, 50.3% are homeowners. They are usually highly ranked in their companies, often at managerial positions, and 65.8% of them have steady employment.  White-collar crime racial statistics reveal 73.9% of offenders are white. (University of Cincinnati School of Criminal Justice) Social and other prejudices often take over the minds of people when they think of criminal activities. Corporate crime is a different beast, though.  Nearly three-quarters of white-collar offenders are white people coming from middle-class or better backgrounds. Notably, income tax frauds are overwhelmingly white-male driven crimes, with 91.4% of perpetrators being male and 89.1% white. Only 6.1% of corporate criminals come from an unhealthy family background. (University of Cincinnati School of Criminal Justice) When we speak or think about thefts, kidnapping, rape, or murders, we often envision the perpetrators coming from tough financial conditions and unhealthy family backgrounds. Statistics on white-collar crime indicate some often overlooked facts regarding the families the felons come from. Namely, only 6.1% of them were raised in families where they were abused, neglected, or abandoned as children. Only 6% grew up with at least one family member involved in criminal activities, and 15% had parents who struggled to provide the necessities of life. Common Types of White-Collar Crimes Asset misappropriation schemes account for 86% of frauds and cause a median loss of $100,000 per case. (2020 Global Study on Occupational Fraud and Abuse) Now that we know who commits white-collar crimes and the statistics behind them, we can determine the most common types of these crimes. According to the data gathered in the Report to the Nations global study on occupational fraud and abuse, the most frequent fraud scheme is asset misappropriation. This felony accounts for 86% of all white-collar crimes, but, luckily, it’s the least costly type with a median loss of $100,000 per case. Asset misappropriation happens when an employee misuses or steals the company’s resources and thus defrauds their employers.  Financial statement frauds are the most costly type of white-collar crime, with a median loss of $954,000. (2020 Global Study on Occupational Fraud and Abuse) Luckily, white-collar crime statistics indicate that financial statement fraud schemes are the least common type of corporate fraud, accounting for only 10% of the cases. So what are financial statement frauds? They involve schemes in which the offender intentionally omits or misstatements the material in the company’s financial statements. Corruption accounts for 43% of cases and causes a median loss of $200,000 per case. (2020 Global Study on Occupational Fraud and Abuse) Corruption takes up an expectedly high proportion of occupational frauds. Offenses such as bribery, extortion, conflicts of interest, bid-rigging, and other illegal activities cause losses of around $200,000 per case. One of the more alarming facts about white-collar crime is that corruption cases often cost companies more than just money. Often their reputation goes on the line, and many have to reach out to costly reputation management services to mitigate the damage. 64% of organizational offenses in the United States happen in closely-held or private corporations. (United States Sentencing Committee) Speaking of the structure of the organizations where frauds are committed, 64% of them are private or closely-held corporations. US white-collar crime statistics show that limited liability companies account for 22.7% of cases, and 9.3% of cases happen in publicly traded corporations. If we dig deeper into the infrastructure of American businesses committing corporate offenses, we can conclude that most are small in size. Namely, 66.1% had fewer than 50 employees, and only 9.7% had more than 1,000.  Only 9% of frauds happen in nonprofit organizations. (2020 Global Study on Occupational Fraud and Abuse) Although nonprofit organizations reported very low white-collar crime rates, the $75,000 in damages per case can be a serious blow to smaller organizations. According to the 2020 Report to the Nations study, private organizations accounted for 44% of corporate frauds, public ones for 26%, government agencies for 16%, and other company types for 6%. General White-Collar Crime Statistics FBI white-collar crime statistics show that these criminal offenses cost the US over $300 billion per year. (Cornell Law School 2020 Global Study on Occupational Fraud and Abuse) According to the Federal Bureau of Investigation (FBI), corporate crime offenses are estimated to cost the US more than $300 billion every year. Aside from fines, other penalties for white-collar crimes include paying the cost of prosecution, home detention, forfeitures, community confinement, supervised release, and even imprisonment.  Only 56% of organizations conducted an investigation of their worst corporate criminal incident. (PwC's Global Economic Crime and Fraud Survey 2020) When we look at white-collar crime report statistics, we can see that the main reason for the persistent recurrence of corporate crime might be the lack of people willing to report it. Figures show that only 56% of businesses conducted an investigation of their worst incidents related to white-collar crime. Simultaneously, barely one-third of organizations reported the incident to the board. 89% of the interviewees reported negative emotions after an incident or fraud happened at the company. Taking all the necessary steps to address and better understand the issue results in fewer fraud cases in the future. Ignoring white-collar crime sentencing statistics for a moment, nearly 60% of companies who conducted detailed investigations into the fraud cases ended up being better off for it.  80% of white-collar crime perpetrators received some punishment in 2020, but only 59% of the cases were referred to law enforcement agents. (2020 Global Study on Occupational Fraud and Abuse) Organizations can refer to the corporate criminal incident internally, through civil litigation, or by reaching out to law enforcement. The statistics on the response to frauds indicate that nearly half of the victim organizations (46%) never refer these frauds to law enforcement, believing that internal discipline is sufficient. Another big reason for refraining from reaching out to the criminal justice system is the fear of bad publicity (32%). There were 755 cases of money laundering in the United States in 2020. (United States Sentencing Committee) White-collar crime statistics by the state indicate that the Southern District of Florida had the highest number of money laundering cases during the fiscal year of 2020 (42). This was followed by the Southern Districts of New York and Texas, with 33 convictions each. One of the ways to prevent money laundering and tax evasion is to engage professional tax software solutions to help companies stay up-to-date and compliant with state and federal tax laws. White-collar crime prison statistics reveal that the maximum prison sentence for insider trading in the United States is 20 years. (US Securities and Exchange Commission) Even though not many people and organizations are willing to go to law enforcement in resolving corporate fraud cases, there are exceptions. When reaching out to the criminal justice system to solve the problem, victim organizations can expect the maximum prison sentence for insider trading to be 20 years. At the same time, the maximum amount of money charged from corporate criminals is $5 million for individuals and $25 million for organizations. Obviously, insider trading is just one of the many corporate frauds that can ruin a company’s finances and reputation, but the steep punishments should serve to encourage more people to speak up and get the felons convicted.
By Danica Djokic · October 07,2021

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