What You Don’t Know About Freelancing

Freelancing has become a premier choice for many individuals worldwide to earn a living. It could become a full-time or part-time scheme. Whatever they choose, many see the benefits that freelancing has done for some of their peers. Let’s take a look at freelancer statistics below to see how freelancing has changed the state of working in the past couple of years.

General Freelancing Statistics

When the pandemic hit in 2020, unemployment rates rose; many turned to freelance to find a source of income. Here are general statistics and demographics to learn about freelancers:

1. According to Payoneer, the top ten fastest-growing countries for freelancing are:

• The Philippines
• India
• Japan
• Australia
• Hong Kong
• Mexico
• Canada
• Pakistan
• Argentina
• Spain

2. In Payoneer’s State of Freelancing During Covid-19 report, 32% of freelancers saw a decrease in their services because of the pandemic.

3. In the same report, despite not being in the Top 10, more workers in the United States (US) have become freelancers despite an unemployment rate of 14%.

4. Meanwhile, Upwork has shown that there are nearly 60 million freelancers in The US.

5. Based on the same study, the status of freelancers in the US are full-timers (48%), part-timers (36%), and those who are full-time employees with freelance work on the side (15%).

6. In the Payoneer study, India saw an increase of 46% in freelancers from the 1st to the 2nd quarter of 2020.

7. Ukraine freelancers observed that demand for their services increased or remained the same in North America. They also didn’t see a decrease in demand in Europe.

8. According to Malt, Men dominate the freelance economy in Europe, particularly in France, Germany, and Spain.

9. The average age of workers in France is 37, Germany is 45, while it’s 36 for Spain.

10. According to Fiverr, the UK has since an upwards trend towards hiring more freelancers in their company.

Freelancing Jobs

Many industries worldwide have depended on freelance work to accomplish some projects or fill in some roles. Here are the statistics related to jobs in a freelance economy. Plus, let’s take a look at the state of freelancer marketplaces.

11. According to Indeed, here are the Top 5 high-paying freelance jobs (yearly salary):

• Software Consultant ($92,219)
• Financial consultant ($83,487)
• Web developer ($78,367)
• Videographer ($77,008)
• Human Resources Advisor ($75,576)

Freelancer Marketplace: Upwork

As one of the leading freelance marketplaces, many freelancers go on Upwork to find new clients. But what’s the current state of Upwork?

12. As reported by Business of Business, Upwork had more than two million registered users on the marketplace in 2020, but the numbers plunged due to a user purge. However, that didn’t stop Upwork from seeing an increase of more gigs in 2020. By the start of Q2, more than 80,000+ jobs were available on the platform.

13. They found in 2019 that 70% of freelancers working full-time are likely to undergo more training to improve their skills.

14. 47% of freelancers are looking towards a long-term career.

15. In terms of doing freelance work, Gen Z leads at 50%. Millennials follow suit at 44%. Meanwhile, Gen X and boomers have a combined total of 56%.

16. The pandemic was a major reason for some students or workers to become freelancers to earn income.

Freelancer Marketplace: Fiverr

Fiverr is another freelancer marketplace. But how has this platform performed over the past few years? Let’s take a look.

17. Many remote workers have signed up on Fiverr, wanting to earn more revenue during the pandemic.

18. Added to that, many are looking to change careers. That’s why they signed up for the marketplace. Those who were surveyed in the Work From Home Survey said 24% of them wanted to try a new job.

19. Respondents of the 2020 Annual Freelance Economic Impact Report determined they needed another source of income (67%), wanted to become their own boss (44%), and wanted to become an entrepreneur or freelancer (25%).

20. They also recognize that they might have irregular income (72%), no benefits (61%), get paid poorly (23%).

Freelance Marketplace: Malt

Malt is a European-based marketplace, focusing on Germany, France, and Spain. Here’s the state of their marketplace.

21. In Malt’s report, even if men dominate the freelancer economy, more women are in jobs such as:

• Communication
• Project management
• Web and graphic design
• Picture and sound

22. In France and Spain, many freelancers work in the top 3 industries:

• Tech & Data
• Picture & Sound
• Communication and Marketing

23. Meanwhile, in Germany, you can find freelancers in the top 3 industries:

• Tech & Data
• Picture & Sound
• Business consulting

Freelance Marketplace: Toptal

Toptal is a marketplace that only includes Top 3% of freelancers worldwide. But what figures can we get from Toptal?

24. Toptal finds that the average global pay for freelancers is $19.

25. 80% of freelancers in Toptal have taken an online course to enhance their skills. 

Freelance Marketplace: FlexJobs

Here’s another marketplace that many businesses consider. FlexJobs has become one of the well-known job search sites out there. But how do they stand against their competitors?

26. Freelance jobs (10.3%) in the computer and IT industry have the highest percentage compared to other industries.

27. Despite the number of jobs in the computer and IT industry, job seekers look for administrative work (7.47%).

Freelancer Rates and Earning

The skill level and the industry where freelancers would work is a key factor in determining rates. Let’s take a look at the rates that freelancers offer to their clients.

28. Despite the uncertainty that the pandemic has brought, most freelancers didn’t raise their rates.

29. According to Onlinejobs.ph, here are the following monthly full-time rates of freelancers in their platform:

• Programmers ($550 to $1300)
• Designers ($400 to $1100)
• SEO Specialists ($400 to $1100)
• Social Media Experts ($300 to $600)
• Virtual Assistants ($350 to $800)

30. Upwork finds that freelancers have earned over $1.2 trillion in the US economy.

31. As for Malt, Germans have a high daily rate reaching up to 1,100€ (this is for the business consulting category). Meanwhile, Spain has the lowest daily rates, with the highest at 678€ (also for the business consulting category.)

32. In the same report, 57% set their prices for clients, while 44% have raised their prices.

33. MBO Partners finds that 20% of freelancers may earn about $100,000 annually.

Freelancing Outlook

34. With businesses embracing more remote work and hiring more freelancers in their workplace, it’s essential to look at the future. Let’s see what businesses and some freelancers would have to say about their future in the freelance economy.

35. According to Payoneer, 53% of those surveyed believe that there will be a higher demand for freelancers after the pandemic.

36. However, 21% do say that demand will be the same before the pandemic hit.

37. In a study by McKinsey, many executives believe they will need more on-site freelancers after two years.

38. Freelancers are confident about their future because they have done freelance or remote work before the pandemic.

Conclusion

The pandemic has accelerated the growth of freelancing and remote work for many workers globally. As the statistics have shown, freelancing might become the norm. Plus, you can expect freelancing to stand the test of time, and more businesses might be convinced to move towards a freelancing approach when hiring workers.