Freelance work and the gig economy is only growing

Freelance is only growing: 5 stats you should know about this highly skilled workforce

November 4, 2021 1:05 PM

Following the pandemic and a nationwide job exodus, millions are choosing to work for themselves rather than work for a company — and more talent is bound to join them.

According to freelancing platform Upwork, 59 million Americans have performed freelance work just in 2020, making up 36% of the U.S. workforce and creating a $1.2 trillion economy. By 2028, that number is estimated to grow to 90.1 million freelancers. In partnership with Opinium, GrowTal, a marketplace for hiring independent marketing professionals, released “The State of Freelancing” report, offering further insight into why this workforce will only expand in the next decade.

“If you're a freelancer, you can demand your own wages, work your own hours and have the flexibility that you want,” says Bryan Karas, CEO of GrowTal. “People know it’s a great time to go out there and take your career by the horns.”

GrowTal’s report surveyed marketing and skilled service freelancers across the U.S., examining how this workforce feels about its changed relationship with work and what it now means to be employed. Here are five stats that reveal the state of freelancing.

Freelancing provides more flexibility and more money

Fifty percent of those surveyed by GrowTal quit their jobs voluntarily in order to pursue freelancing. Alongside flexibility being a huge draw, freelancers sometimes find that they make more money spreading their talent over multiple organizations, Karas explains. Upwork has found that 60% of freelancers now make more money after leaving their full-time job. To Karas, this means workers are in the driver’s seat — not employers.

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“By freelancing, people take control of their own destiny a little bit more, rather than just going to the next employer who will take control of their destiny,” Karas says. “It’s a shift in empowerment.”

Opportunities are easier to secure

Only 25% of freelancers felt they struggled to find new work opportunities during the pandemic, especially those involved in marketing. With remote work removing the illusion of geographical barriers, freelancing is more normalized than ever, Karas says. It also helps that more employers and employees are questioning if the traditional nine to five is the best use of their money and time.

“There’s a lot of overhead costs when hiring someone for 40 hours a week, even if they are really working 20 or 25 hours,” says Karas. “The employee doesn’t feel fulfilled, and the employer doesn’t feel they are getting their money’s worth — it’s just more efficient to hire people for specific gigs that need to be done at higher pay rates for less hours.”

Mental health and well-being can be a priority

Seventy-two percent of women freelancers and 64% of men freelancers found that their overall mental well-being improved since freelancing. Karas points to increased control over one’s time as being the main contributor to these numbers. Workers can now plan their day based on their lives, not just their jobs. And for those who are more introverted or simply need to work in an environment where they are in control, freelancing can eliminate certain burdens found in the traditional workspace, Karas explains.

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“People are obviously burned out,” Karas says. “They are looking for alternatives where they can do what life requires of them without the pressure of being in-person or doing work at a certain time.”

Benefits are still important

While 62% of freelancers do not want the government to classify them as an employee, 45% would like the benefits found in traditional employment and support laws that reclassify contract workers as employees. However, many are uncertain whether the benefits are worth it. Sixty-two percent of those surveyed are worried those laws may discourage companies from hiring them.

Those fears are not unfounded: California’s “Gig Worker Bill” required companies to reclassify some freelancers as employees, depending on the nature of the services they offer. The prospective bill led companies like Vox to lay off hundreds of freelancers before it even took effect.

“I don't think it's necessary for there to be a nanny state that comes in and actually mandates these types of things,” says Karas. “More solutions will come up for freelancers, where they're going to be able to get similar types of benefits or at least negotiate rates by pulling together.”

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In the meantime, Karas recommends that those interested in freelance run a cost-benefit analysis and understand what benefits like healthcare will cost them, so they know if freelancing is truly a better financial option for them.

Freelancing is the future of work for many

Eighty-five percent of freelancers believe freelancing will become more common in the future. With a workforce estimated to grow in the tens of millions in less than a decade, it’s clear that freelancing isn’t going anywhere. GrowTal’s report also found that over half of those surveyed do not see themselves returning to solely traditional work.

“This is not just about the expansion of the gig economy into white-collar jobs,” Karas says. “It’s going to become more and more common to see people come in and out of different businesses and perform highly skilled jobs in all sectors of the economy.”