Freelancing has grown to become a significant source of income for many. Future predictions suggest that many people will join the fast-growing job sector. An Upwork study found that 12% of the workforce in the U.S. worked as freelancers in 2020. This was after the effects of the COVID pandemic. Massive layoffs rendered many jobless, forcing them to seek alternatives to make ends meet. This article features current trends in the sector and future expectations.

Below I have highlighted four Reasons for the Growth of Freelancing over traditional Jobs

1. Need for Self-Employment

Many people will ditch traditional jobs in the future. People who ventured into working from home jobs amid the pandemic experienced a different feeling. Businesses and corporates are at an advantage too. It's now easier to offer staff flexible working hours.

Total acceptance is expected in most sectors in the future. This means more opportunities will arise.

2. Entrance of New Technology in the Market

The emergence of modern tech solutions has been crucial for this sector. It provides a solution to many problems that were hard to solve in the past. Amid the current pandemic crisis, technology has eased communication. It's now possible to hold online meetings via platforms such as Zoom, Slack, and Airtable. Employers can now access the services of professionals through various freelance marketplaces

3. Cost Reduction

People don't have to show up for work daily. They can now cut on transport costs, expensive outfits, and food. Employers will get to save on office space and hire people for only specified projects. To get started, all you need to have is a computer and a stable internet connection. The jobless can now secure a source of income. Marketing is also affordable. Businesses can use social platforms at cheaper costs for advertising.

4. Emergence of Generation Z

The new entrants in the work landscape are Gen Z members. The group comprises its first members at the age of 18-22. The fading hopes of securing government and corporate jobs will force many to think of other alternatives. The cohort is different from the rest of the groups since they were born in the internet era. This generation is more equipped with skills and education than the preceding. More than 36% of the Gen Z Workforce in the U.S. ventured into freelance in 2020 (Upwork).

Important Freelance Statistics to Consider

Few statistics worth pointing out from the recently released Upwork's Future Workforce Report.

• Two-thirds of the self-employed earn more than full-time employed workers. That is, 65% of persons who ditch formal employment end up making more in self-employment.

• Youths comprise the most significant percentage in this industry. The Gen Z cohort (18-22 years) accounts for 50%.

• 62% of employers will opt to outsource in the future. They stated that outsourcing workers satisfied their expectations.

Final Remarks

Freelancing is the future of work. A year from now, an exponential increase in the number of independent workers is expected. This field offers a flexible alternative to traditional employment. The development of technology is the main factor for the rapid growth in this sector. Globalization and the growth of online payment platforms will catapult the industry.