The "gig economy" has witnessed significant growth over the past two years, especially after the coronavirus pandemic, with an estimated total of 1.57 billion people worldwide working as freelancers out of a global workforce of 3.38 billion.
According to World Bank data, 46.7% of all workers around the world are currently in this sector, with most modern work activities taking place on specialized freelancing platforms such as "Upwork", "Fiverr", "Toptal", and "Freelancer", among others.
The global freelance work platform market is valued at $3.4 billion, and is expected to reach $9.2 billion by 2027, as recently mentioned by the "Exploding Topics" platform.
The average hourly rate for freelancers worldwide is $21 per hour. On average, freelancers working in web and mobile development, marketing, legal services, accounting, and other skilled services earn $28 per hour, which is higher than 70% of all hourly wages in the United States, according to the same source.
In reality, this trend towards freelancing is not just a statistic, but a reflection of the changing spirit of the younger workforce, benefiting self-employed individuals by providing them with freedom and control over their careers. It also benefits companies looking for specialized talents without the traditional constraints of long-term employment commitments as mentioned by the "Forbes" platform.
Approximately 70% of freelancers worldwide are aged 35 or younger (Getty)
The Rapid Rise of Freelancers: Explanatory Factors
About 70% of freelancers worldwide are 35 years old or younger. The new generations of youth, particularly "Generation Z" (ages 16 to 26), are increasingly attracted to freelancing.
A study by "Fiverr" platform indicates that 67% of young people around the world are interested in working independently.
This begs the question: what's driving this desire?
The "Focus Tribes and Co" platform summarized the reasons as follows:
- Seeking Freedom and Independence
The new generation of youth grew up in a connected world where access to information and opportunities is easier than ever. For them, freelancing offers greater freedom and autonomy compared to traditional jobs, allowing them to work from anywhere, anytime, and with anyone they choose.
They have the liberty to manage their schedules according to their needs and goals, and to work on projects that interest them.
- Increased Income
In a world marked by inflation and economic instability, many young people see freelancing as a viable option to boost their income. They perceive it as an avenue to earn more than what is possible with full-time employment which can lead to greater financial stability, an important factor for young people looking to establish their futures.
- Acquiring New Skills
The new generations see freelancing as a means to learn new skills that they might not develop in a full-time job. Freelancing allows them to work on diverse projects which help them gain new experiences. They also have the chance to work with different clients and industries, thus enriching their skill set.
For employers, this means freelancers can bring a wealth of skills to their companies and projects.
- Work-Life Balance
Fiverr's study found that 71% of Generation Z wants flexible working hours, and 35% wants a positive work environment.
These results suggest that individuals from this generation value work-life balance, cherishing the freedom and autonomy that freelancing offers, which enables them to achieve a better balance and is essential to their well-being.
- Entrepreneurial Ambition
The study found that one in four Gen Z youths intends to start their own venture, a significant departure from the career paths of previous generations. Many young people are now exploring their passions, interests, and hobbies to create careers that align with their values and goals. As freelancers, they have the opportunity to develop their own businesses and work on projects they love.
The current value of the global freelance work platform market is $3.4 billion (Getty)
The Downsides of Independent Freelancing
"Upwork", the world's largest platform for independent freelancing, mentions some of the biggest challenges faced by freelancers in their careers:
- Loss of Regular Employee Benefits
Employees in many countries enjoy benefits and privileges that form part of their employment contracts, including health insurance, paid leave, retirement and social security contributions, and free training opportunities.
As a freelancer, you lose all these benefits. You are responsible for your own health insurance costs, retirement contributions, training and development costs, and of course, paid work leave.
- Loss of a Steady Income
Freelancers do not have a consistent income or regular salary, and sometimes find themselves without work for extended periods. Many work on a per-project basis, leading to income fluctuations and necessitating management of their monthly budgets.
- Sole Accountability
While it might be thrilling not to have a direct manager and full responsibility, there are burdens as well; as a freelancer, you are responsible for everything. Your success or failure is determined by how well you handle your responsibilities without supervision.
You are also responsible for paying your bills, setting up your work schedule, and managing your work hours. Freelancers must learn to set boundaries and manage their time effectively, which can be quite challenging for newcomers.
- Self-Advocacy and Marketing
As a freelancer, you must learn how to market yourself to find new projects and clients and grow your business.
This constant self-advocacy can be a time-consuming endeavor that takes time to master but is crucial to your success or failure as a freelancer. It can often feel like an incessant job hunt, with frequent rejections, which is undeniably exhausting; especially for new freelancers.
- Feeling of Isolation
Working from home and dealing with clients from across the globe are undoubtedly among the best aspects of freelancing. However, working from home can also sometimes lead to feelings of isolation.
Staying home for long periods can disconnect you from your community. Hence, freelancers should be wary of falling into the trap of isolation and should engage in various social activities to avoid living in seclusion.
