Discover how COVID-19 accelerated the rise of freelancing as a new full-time option. Explore the global shift towards independent contracting, impacting employment trends and job markets worldwide.

Was Freelancing Made the New Full-Time by Covid-19?

In 2023, freelancing emerges as a prominent path for America's future, according to futurists' predictions. They foresee a shift towards a nation of independent contractors, with traditional full-time employment gradually fading away.

The COVID-19 pandemic accelerated this transformation, turning a three-year projection into reality in just three months. Temporary job advertisements surged from 24% to 34% during the pandemic, highlighting the growing trend.

Before COVID-19, only 12% of temp job ads were for communications roles, but that number rose fourfold during and after the pandemic. Similarly, temporary marketing jobs increased from 8% to 28%, and even HR positions transitioned into freelance work.

Considering these changes, it's essential to explore how COVID-19 transformed the job landscape and what the future holds for employment efforts.

Workers All Over the World Switch to Freelancing

Millions of people experienced swift furloughs during the pandemic, and unfortunately, some never returned to their previous jobs. By the end of May, the unemployment rate in the United States surpassed 40 million, with the numbers continuing to rise each week.

In response to the crisis, many individuals turned to freelancing as a means of survival, driven by the urgent need to secure income. The freelance industry saw a significant increase of two million Americans (a 36% rise) entering this field.

The trend wasn't limited to the US alone. Countries worldwide witnessed substantial growth in freelancing, as shown by Payoneer statistics:

• Japan experienced an 87% increase, India 160%, and The Philippines a remarkable 208% growth in freelancing.

• Other nations also saw significant rises: Australia scored 86%, Hong Kong 79%, Mexico 72%, Canada 71%, Pakistan 69%, Argentina 66%, and Spain 66%.

The absence of America from this list highlights the notable shift towards freelance work in other countries. Freelancing became a global phenomenon in response to the challenging economic circumstances caused by the pandemic.

Employers Turn to Freelancers

As more people embrace freelancing, it's becoming increasingly reasonable for employers to adopt this model as well. The lockdowns during the pandemic compelled businesses to find ways to operate efficiently without losing customers or money, leading to a need to cut expenses.

A survey revealed that 45% of hiring managers anticipated hiring freezes for new employees, but surprisingly, 73% of employers wanted to maintain or increase the hiring of independent workers. This shift to freelancers might even impact hiring practices in the future, especially as more individuals become accustomed to working from home.

With the acceptance of remote work, employers are no longer confined to local labor markets, making them more open to hiring from a broader talent pool. As a result, the number of freelancing job postings increased by over 25% between April and June 2020, and freelance job posts saw a substantial 41% rise compared to the previous year.

The pandemic caused a loss of 400 million full-time jobs' worth of working hours during the second quarter of 2020, according to the UN's International Labour Organization. Freelancing provided an opportunity for individuals to compensate for this shortfall by offering their skills and services in a flexible and agile manner.

Here are some of the freelancing positions that are expanding the quickest:

In 2023, several professions have experienced significant growth, including statisticians and mathematicians (increased by 30%), game developers and designers (up from 64% to 68%), e-commerce experts (up by 54%), and marketers (experiencing a 28% increase from 8%).

In the post-pandemic period, unemployment has decreased, and there is a continuous rise in freelance and remote work. American temporary employment saw a substantial increase of almost 81,000 in January 2021.

Reports suggest that businesses are recognizing the benefits of hiring contingent workers rather than full-time employees. This shift is attributed to reduced costs due to lower office usage and project-based pricing. Many companies, regardless of their size, are engaging independent contractors for customer services, e-commerce development, and online and mobile design projects.

Freelancers also express confidence in the gig economy, with approximately 58% of professionals who have never worked remotely considering doing so in the future. Moreover, 36% of professionals now rely on freelancing as their primary source of income, up from 28%.

How to Get Ready for a Future as a Freelancer

In 2023, you may have noticed that the freelance market is gaining confidence. Both companies and professionals are considering making the switch because freelancing offers benefits like flexibility, cost savings, and income potential.

You might wonder if freelancing can provide the same job security as regular employment. It depends on the individual and their circumstances. Just like regular jobs, freelance roles can also end unexpectedly due to unforeseen circumstances. However, one advantage of freelancing is that professionals can work with multiple clients simultaneously, and businesses can adjust their scale based on their needs.

If you're interested in entering the freelance sector, consider checking out Fiverr. Fiverr simplifies the process of finding freelancers and freelance jobs across various sectors, such as data, writing, translation, graphic design, music, audio, video, animation, business, programming, technology, and more.