The freelance economy is booming, with hiring managers more willing to work with freelance workers. See why freelancing is the way of the future Freelance work has grown exponentially in the last five years. From 2014 to 2019, the number of freelancers in the U.S. increased by four million. That brought the total number of freelancing Americans up to 57 million — making independent contractors 35% of the U.S. workforce. Of course, this was before the global pandemic of 2020. When COVID-19 hit, it not only caused worldwide illness; it also led to the highest unemployment rate in recorded U.S. history. In April of 2020, the U.S. Bureau of Labor Statistics reported a never-before-seen 14.7% unemployment rate. Freelancers were by no means impervious to these decreases in work. COVID-19 changed many freelance industries, and it left many people wondering: “What is the future of freelancing?” 2020: Not the End of Freelance Work The pandemic may have temporarily affected freelance workers, as many of their clients shut down or halted work orders for the foreseeable future. Additionally, many freelancers have struggled to obtain the expanded unemployment benefits provided as part of the CARES Act. However, office closures and the reduction of in-person staff means that when work starts to pick up again, there won’t necessarily be a place (or the budget) for full-time employees. Hiring managers will likely turn to the gig-economy to find workers, including moving toward using virtual assistants instead of hiring in-office help. Freelancers Are More Likely to be Hired Post-Pandemic According to the 2020 Future Workforce Report as reported by Forbes, hiring managers are 47% more likely to hire freelance workers as a result of COVID-19 when compared to statistics collected in the fall of 2019. Furthermore, according to the Fast50 report that tracks data for North America, Asia, and Europe, there has been a 25% increase in new freelance job openings between May and June 2020. It seems that opportunities for freelancers will open up as the pandemic winds down. More businesses are realizing that fully-staffed brick and mortar offices are unnecessary and expensive in most cases. The same Fast50 report found that job listings for in-person roles was down 35.6% for the time period. In general, freelance work is more affordable for businesses, even though, on average, freelancers earn more per hour than 70% of the U.S. workforce. The lower cost of hiring freelancers can be attributed to the fact that businesses aren’t responsible for providing their supplies or benefits. They can also pay gig-workers for a single job, rather than compensating an employee for hours that may not have been as productive or valuable. Additionally, rather than paying full-time staff to pursue training or learn about new industry standards, companies can turn to independent professionals who possess highly specific skills and expertise. Payoneer shares global data regarding how demand for freelance services has been affected during the pandemic:
The good news? Freelancers’ rates have largely held constant.
Freelancers are Happier During the pandemic, and even prior, concerns about mental health and work-life balance were at the forefront of the public’s minds. When the government ordered us to shelter-in-place, many people relished the opportunity to work from home. The stress of a daily commute was eliminated, and those with families got to spend more time with them. In fact, a study from Prudential found that 68% of employees currently working from home would like to keep doing so post-pandemic. After COVID-19, it will be hard for those who have adjusted to the flexibility of working from home to return to office work. Many will move toward freelancing instead because of the freedom it provides. The Future is Freelance The facts are clear — freelancers earn more on average than full-time workers, and companies are becoming extremely open to outsourcing projects. Combine this with the rise of remote work as the standard for many industries, and it’s safe to assume that freelance work will continue to rise in popularity after 2020.
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