Growth of the freelance economy

You too can start your own business

Going freelance has steadily become more and more popular, especially given the tech layoffs and uncertain market conditions. Although this would involve finding your own clients and typically doing everything from marketing to sales to accounting by yourself, many people value the flexibility and full control that freelance work can give.

The number of freelancers is growing

Firstly, let’s establish the difference between freelancing and gig work. Although they essentially mean the same thing (working for yourself), there are some subtle details that generally separate the two. Freelancers typically work as independent contractors for single clients, large companies or even the government. They are responsible for invoicing, accounting and finding clients on their own and, if these earnings constitute their main source of income, are considered self-employed. Gig workers on the other hand, can operate from a platform for extremely short assignments - UberEats, Lyft for example - but also include things like a musician playing at a bar for a night.

Since 2017, the number of freelancers in the US has steadily grown to over 73 million workers in 2023, and is projected to reach over 90 million workers by 2028 if growth rates stay constant - over 50% of the total US workforce. Of course, this number is comprised of a large variety of freelance workers. Some may take on the odd project or two every month as a side hustle, while for others their main job is their freelance work.

---

Get smarter in 5 minutes with Morning Brew (it's free)

There's a reason over 4 million people start their day with Morning Brew - the daily email that delivers the latest news from Wall Street to Silicon Valley. Business news doesn't have to be boring...make your mornings more enjoyable, for free.

*sponsored advertising content

---

Average hourly rates 

One of the big draws of freelancing is being able to charge higher rates for a project than a typical employee. This obviously varies based on skill, demand, clientele and even location. According to Payoneer’s 2022 freelancer report, the average hourly rate is $28, compared to $21 in 2020.

When comparing professions however, some rates have jumped significantly higher - finance projects paid on average 78% more in 2022 than in 2020, while marketing projects paid on average 48% more! Remember, these are average rates - top performers often charge in the hundreds of dollars per project.

See you on Friday for a deepdive on AMD!

Created by Miguel

---

---