In The Midst Of A Tumultuous Job Market, 59 Million Americans Work As Freelancers

Friday, 31 December 2021, 6:47 pm
Article: Hugh Grant

According to a new analysis, freelancing rates in the United States are stable, contributing $1.3 trillion to the economy.

According to Upwork's Freelance Forward: 2021 study of the US independent workforce, this surge was fueled by an increase in the number of highly trained, remote freelancers who abandoned full-time jobs for more flexible work options. At the same time, there was a noticeable decrease in temporary employees and an increase in all other forms of freelancing combined.

According to the study, "a very broad spectrum of tasks that classify as freelancing" when contrasted to regular employment. "Freelance employment might range from selling items online once or twice a year to delivering groceries once or twice a month to working full-time as a programmer or accountant."

According to the research, 59 million Americans worked as freelancers in the previous year, accounting for 36 percent of the total U.S. employment (or more than one-third).

According to the research, the percentage of non-temporary freelancers increased from 33.8 percent to 35 percent between 2020 and 2021.

Freelancing is becoming more popular among highly educated employees, according to Thrive Insider. According to the Upwork survey, 51 percent of post-graduate employees are now freelancing, up 6% from 2020, while the percentage of high school graduates or less freelancing has decreased from 37 percent in 2020 to 31 percent this year.

In 2021, skilled remote freelancing grew even more. According to the study, in 2021, 53% of all freelancers supplied specialized services such as computer programming, marketing, IT, and business consulting, up from 50% in 2020.

"For many highly qualified people, freelancing has remained a solid element of the economy and less of a transitory alternative," according to the study.

In terms of other characteristics, new freelancers are more likely to be male, urban, and caretakers. They are also more full-time, more distant, younger, in hard-hit professions, and in hard-hit occupations.

Flexibility and independence are, unsurprisingly, important motivators for both new and experienced freelancers. According to the findings of the report:

Career ownership is a high lure for 68 percent of new freelancer responders, followed by the flexibility to work remotely at 54 percent.

Schedule flexibility is reported by 78 percent of experienced remote freelancers, while geographical flexibility is indicated by 73 percent, and freelancing helps them to pursue meaningful work by 73 percent.

Another major driver of freelancing is the fact that in 2021, 44% of freelancer respondents indicated they made more money freelancing than they did with typical employment, up from 39% in 2020 and 32% in 2019.

Another attractive feature is the option to work from home. According to the research, although 36 percent of the entire workforce freelances, 47 percent of those working remotely do so. In addition, 31% of freelancer respondents said that they operate fully from home.

In terms of earning potential, 44% of freelancers say they earn more than they would working for a typical company, while 18% say they make the same and 38% say they make less.

Freelance employment has a promising future.

According to the study, 56 percent of non-freelancer professionals are contemplating freelancing employment in the future, despite the so-called Great Resignation.

Nine out of ten freelancers feel that freelancing's "best days are ahead": According to the survey, two-thirds of freelancers (66%) feel positive about their jobs in 2022, compared to 53% of non-freelancers.

Many small business owners are equally upbeat about the future of freelancing, claiming that typical 9-to-5 workplace standards had been put to the test, with many professionals opting for a change.

"Since the epidemic, there has been a surge in interest in this manner of working, and we anticipate that trend will continue until 2022 and beyond," the study author added. "We expect growth to be more on a job-by-job basis than on an industry-by-industry basis."

Upwork, for example, sees a lot of remote freelancing across sectors in the fields of online, mobile, and software development. Those talents are in high demand in industries such as manufacturing, retail, and healthcare, among others.

According to the survey, tapping into freelance websites is a critical approach for success in freelancing. Prior to the epidemic, one out of every four experienced freelancers stated they got work mostly via freelancing websites.

According to the survey, 91% of responding freelancers who used freelancing websites before and during the epidemic said they would suggest them because they can find meaningful work, trustworthy customers, and access to tools and resources that assist with project management and efficiency.

Between August 27 and September 29, 2021, Upwork conducted an online poll of more than 6,000 U.S. employees aged 18 and above. There were 2,156 freelancers and 3,844 non-freelancers among them.

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