The workforce is changing as more people choose to work part-time and freelance jobs; now, little more than one-third of us are employed in one of these roles. For people without jobs, however, it's more than simply a means to an end. Many employees are happy to switch from full-time to part-time or freelance work.
In addition to working short-term placements through temporary agencies, independent workers also include tuition, driving services, product deliveries, short-term rentals of personal property, creative professions like acting or writing, and substitute teaching. All respondents who self-identified as contract, freelance, temporary, or gig workers were included in our survey sample as independent workers. Respondents occasionally work full-time jobs in addition to their side hustles.
The optimism of independent employees is even more impressive in light of the challenges they face. Respondents tell us that many people lack access to fundamental necessities like reasonably priced healthcare and wholesome food. Compared to 35% of permanent employees, the majority (54%) express concern about the stability of their position.
Freelance work is often an underreported and understudied sector of the economy since it does not cleanly fit into official labor statistics. We can now address some of these issues regarding this labor pool, such as its size and composition, the reasons behind people seeking independent work, and the difficulties they encounter.
Who is entering the economy of freelancers and what does it entail?
The term "freelance economy" describes a work environment where independent contractors generate revenue by doing tasks that are not related to their regular full-time jobs. Some freelancers make their whole living from freelancing, while others have full-time jobs that come with perks. The number of full-time independent contractors who depend only on freelancing for their income increased by 25% to 3.4 million in 2023. While in between full-time careers, some people take on freelance work. Unlike others who freelance full- or part-time and have no hope of landing a full-time job, these temporary workers intend to return to the workforce.
Social media and platforms like Fiverr and Upwork have made it simpler for independent contractors to interact with clients and customers outside of a typical full-time job. According to a recent UpWork research of 6,000 American individuals, highly skilled freelance employment in industries including computer programming, writing, design, IT, marketing, and business consulting accounted for 53% of all freelance work in 2023 (compared to 45% in 2019). Additionally, according to Upwork, freelancing boosted the US economy by $1.3 trillion, or $100 million more than in 2022.
A startling 51% of employees with a postgraduate degree performed independent work in 2021, according to Upwork, an increase of 6% from 2020. That covers both full-time and part-time freelancers who also work a full-time job. The next most likely to work for themselves independently is a bachelor's degree holder, at a lower 35 percent.
Freelancers can now work from any location around the world, unlike when they were restricted to home offices and coffee shops. Freelancers have access to gorgeous locations throughout the globe through flexible coworking solutions like WeWork All Access and WeWork On Demand, where they can meet with customers, work with colleagues, or just get out of the home to add regularity. Many people join up for their own workspace away from home in addition to coworking environments, which can help their businesses flourish.
Who works as a freelancer?
There are many different sectors and types of freelance labor. The job can consist of short-term initiatives lasting a few days or weeks or longer-term contracts involving continuous advisory services for internal teams without the resources or expertise to handle specific projects. material creators who make a living by creating material and building an online following can also be classified as freelancers. Some industries are better suited for freelance work than others. According to data from Upwork, 77% of artists and designers worked as freelancers in 2023. This covers independent graphic designers, animators, video producers, and illustrators. For example, a graphic designer can frequently make well over six figures working as a freelancer full-time.
Marketing had the second-highest percentage of freelancers among its employees, at 58%. This group may include independent copywriters, social media managers, project managers, digital marketers, and creative directors.
With 53% of freelancers, computers and mathematics had the second-highest percentage. These more technical jobs include those of software engineers, data analysts, and business analysts.
Reasons for choosing independent work
Independent contractors are able to choose their own hours and location for employment. Two major incentives for part-time freelancers—people with full-time jobs who work freelance on the side—are the chance to follow a passion and the potential to obtain expertise they can't get at their full-time jobs.
A variety of reasons drive full-time independent contractors. The idea that individuals can make more money by freelancing is a significant one. According to data from Upwork, 44% of independent contractors claim to make more money than they would working for a typical employer, 18% say the same, and 38% say less.
Issues that freelancers face
Creating work is the largest problem that independent contractors face. It takes labor to find clients, commit to projects, and find steady employment that pays enough to support oneself. A freelance profession can need a significant amount of labor to secure. Years are often spent by freelancers establishing the foundation that would enable them to pursue independence.
Many of the managerial responsibilities that come within the purview of human resources departments when employees work full-time are handled by freelancers. Benefits like dental and health insurance as well as retirement programs must be enrolled in independently by them. You, as a freelancer, can make your own paystubs. They will help you maintain your records and ensure that your taxes are filed accurately and on schedule.
