A snapshot of the $1.2 trillion freelance economy in the U.S. in the age of Covid-19

A snapshot of the $1.2 trillion freelance economy in the U.S. in the age of Covid-19

More than one-third of the American workforce freelance amid the Covid-19 pandemic, contributing $1.2 trillion to the U.S. economy, a examine by Upwork revealed Tuesday. This was a 22% improve since 2019 and it was fueled in half by an inflow of youthful, highly-skilled professionals looking for versatile alternate options to conventional employment. 

Upwork’s seventh annual examine entitled Freelance Forward surveyed greater than 6,000 U.S. staff over the age of 18 and located that 59 million Americans carried out freelance work in the previous 12 months, representing 36% of the U.S. workforce, a rise of 2 million freelancers since 2019. It was carried out June 15 to July 7.

 Key findings supply stunning developments. Among them:

  • Freelancing will increase incomes potential: Of those that stop their full-time job in order to freelance, 75% say they earn the identical or extra in pay than after they had a standard employer.
  • Professionals are more likely to take into account freelance work in the future: 58% of non-freelancers who’re new to distant work on account of the pandemic at the moment are contemplating freelancing in the future.
  • Young adults are turning to freelancing for financial alternative: Amid a troublesome job marketplace for current school graduates, half of the Gen Z workforce (age 18-22) have freelanced in the previous 12 months, and of these, greater than a 3rd (36%) began since the onset of Covid-19.
  • More professionals are freelancing full-time: The share of unbiased professionals who earn a dwelling freelancing full-time has elevated eight share factors to 36% since 2019. 
  • Freelancing helps to hone expertise: 59% of freelancers have participated in expertise coaching in the final six months vs. 36% of non-freelancers.
  • Companies of all sizes flip to freelancers: There is a burst in demand for folks to help buyer providers in addition to ecommerce improvement, internet and cell design.

According to Upwork president and CEO Hayden Brown, “It’s not surprising freelancing is on the rise in this era of uncertainty.”

She famous one other driver is the development in distant work. “We expect this trend to continue as companies increasingly rely on freelancers as essential contributors to their own operations.” 

Freelance jobs most in demand at present are in computer systems/arithmetic, and in finance/enterprise operations, in response to the report. Even earlier than Covid-19, 26% of freelancers labored solely distant and 46% labored remotely greater than half the time.

“The changing dynamics to the workforce that has occurred during the crisis demonstrate the value that freelancing provides to both businesses and workers,” added Adam Ozimek, Upwork’s chief economist. Disruptions in training have made flexibility key throughout a time when calls for for baby and elder care, together with job obligations, have grown.

Society’s notion about freelance can be altering. Seventy-one % of freelancers say perceptions of freelancing as a profession have gotten extra constructive, the survey revealed.

Meanwhile, 67% of full-time freelancers say that freelancing has ready them to deal with the uncertainty of the coronavirus pandemic higher than these in conventional jobs.

Here’s a snapshot of the freelance economy:

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