A decade back freelancing was just considered as one of the many ways to side hustle. But today it is one of the fastest-growing segments of the workforce across the world.

It is estimated that nearly 1.57 billion people out of the total global workforce work as freelancers, as of 2023. And about 70% of these freelancers are not more than 35 years of age. A study revealed that by the end of 2023, the global gig economy will grow to the worth of $455 billion.

Why is the freelance industry booming?

The simple answer is changing perceptions! Unlike today, back in those days freelancing had very little scope of growth and was considered as a poor career path. Today freelancing is perceived positively as a great career choice. The generational change has added to this transition. Gen Z is more open to exploring freelancing as they value their freedom and passion immensely.

The Covid-19 pandemic accelerated the growth of this industry. The trend of remote work has triggered a greater number of working people’s desire to work from their home or comfort zone. Employers have comprehended the fact that they can get productive output even if their workforces work away from the office. Also, the technological developments in recent times have made remote working a viable option.

People choose freelancing as a career because it not only supports work flexibility and work-life balance but also provides the optimal freedom to work on projects that interest them, unlike their regular jobs. About 70% of global freelancers focus only on freelancing, making it their single source of income.

Freelancers in certain countries are growing more rapidly than the rest of the world. The list of the top 10 freelancing countries of the world in 2023 includes:

1. United States
2. United Kingdom
3. Brazil
4. Pakistan
5. Ukraine
6. Philippines
7. India
8. Bangladesh
9. Russia
10. Serbia

Why do companies prefer hiring freelancers?

Largely, hirers prefer working with freelancers as it caters to their need for specialized expertise, as and when required without having to hire them permanently. Small and medium businesses around the world especially the ones that have very tight budgets benefit the most by hiring freelancers. They find freelance services as a very cost-effective and valuable option for boosting the growth of their business.

Freelancers specialize in a certain niche of their field and they have thorough experience and knowledge in it as they work for multiple companies. They come up with more innovative and creative ideas in order to attract and retain their clients. So, they can offer a better quality of work than an in-house employee who just works for one company. Moreover, they are more productive and deliver quickly too because their earnings are proportionate to the amount of work they do.

A recent survey shows that the majority of businesspeople who have worked with freelancers agree that freelance services enhance innovation in their business while resolving their talent shortage problem.

What the future has in store for the freelance industry?

It can be said that this industry will continue to grow robustly. It is anticipated that by the year 2028, the global freelance platform market may reach a value of 9.171 billion USD. This is because a good percentage of hiring managers across the world find freelance services very effective in filling the skills gaps in their companies. Consequently, most of them plan to escalate their utilization of freelance talent in the coming years.

An independent survey uncovered that about 78% of companies will work with freelancers in 2023 and beyond instead of increasing the number of their in-office employees. 73% of tech companies will work by creating blended teams of freelancers and regular employees.

Accounting and Bookkeeping, Web Design and Development, Digital Marketing, Content Writing, Graphic Design, Data Analysis, and Business Intelligence, SEO (Search Engine Optimization), Social Media Marketing, and Virtual Assistance are some of the most in-demand freelancing job skills and are likely to be in demand in the forthcoming times. While the requirement for skilled freelancers is increasing, technical and specialized freelancers are likely to earn better than their counterparts.