What is the Freelance Economy? background

What is the Freelance Economy?

By Lucas |

This little thing called the freelance economy has boomed in the 21st century. However, the fact that it’s worth an estimated $4.2 trillion in 2021, we can safely say that it’s not so little at all. To give some perspective, if the global freelance economy were a country, then its “GDP” of $4.2T would make it the fourth-largest economy in the world––following the United States ($21.4T), China ($14.3T), and Japan ($5.1T).

And by all signs of where things are progressing, this trend is not only expected to grow drastically, but is set to revolutionize the workforce as we know it.

What is Freelancing?

Freelancers are workers who take on jobs and projects as they come, instead of having a part or full-time job with an employer. This is the case across a broad range of industries, including technology, art & design, transport, education, and of course – what we do here at Stitch -hospitality. (But more on how we come into the picture in our next post!)

What is Driving the Freelancer Revolution?

The contemporary explosion in freelance work has been attributed to three major technological forces:

  • The Internet––enabling people to connect with anyone on the globe at any time;

  • Remote Tools––enabling people to collaborate with anyone on the globe at any time;

  • Workflow Tools (i.e. contracting, payment, project management)––enabling people to run scalable and profitable one-person businesses.

What are the Benefits?

The most common benefits which people associate with freelancing include:

  • The flexibility to set one’s own hours, with the freedom to work whenever and wherever one chooses;

  • The ability to control the kind of jobs and projects that one takes on;

  • The ocean of opportunity that is available on freelance platforms, with the ability to find work on demand.

Who is Freelancing For?

Freelancing has become an attractive option among the following types of people:

  • Those with an in-demand skill to offer the marketplace;

  • Workers who may not have a definite, long-term professional career;

  • Those who may already be employed in a job but seek extra income;

  • Full-time employment seekers;

  • Students.

Other than those types of people, freelancing is simply an exciting avenue for anyone who wants to achieve the benefits previously mentioned.

The Freelancer Revolution is Here to Stay

According to a study by UpWork and the Freelancers Union, freelancers currently make up one-third of the workforce. As technology advances and the global economy undergoes significant changes in a post-pandemic world, we can expect a dramatic rise in this movement.

The freelance economy is one of the most important trends of the modern world. As it continues to take shape, we see it having a major positive impact on both businesses that need skilled labour, as well as individuals who want more freedom over where and when they work.

The freelancer revolution is here and it is here to stay.