U.S. Independent Professionals Earned $286 Billion in 2022, a Nearly 10% Increase Compared to 2021, According to Fiverr’s Sixth Annual Freelance Economic Impact Report
Fiverr today released its sixth annual Freelance Economic Impact Report. The comprehensive study identifies and profiles the largest markets in
“The
Independent Worker Trends Across The
Independent work continues to be an influential economic driver, with freelancers poised for continued success even in an uncertain economy
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The
U.S. independent workforce is comprised of 6.7 million individuals and are estimated to have earned in 2022, up nearly$286 billion 10% from 2021. They represent4.1% of theU.S. labor force, and their earnings comprise1.1% of totalU.S. gross domestic product (GDP) in 2022.
Professional services outrank all other areas of work by population and revenue
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Independent professionals offering professional services (legal, accounting, consulting) are increasingly feeling more confident about their job security and are seeing an increase in demand. In fact,
45% of those offering professional services are more likely to report increasing their rates as a result of increased demand, and those who charge by the hour are on average earning more than those offering technical or creative services ( an hour on average). In the top 30 markets, professional services comprise the largest share of skilled independent workers and their revenues, at half the workers ($103 50% ) and nearly half the revenues (47% ) estimated for 2022.
Despite concerns that A.I. will significantly impact jobs, freelance workers are more hopeful than fearful
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The share of independent workers who are hopeful about A.I. outnumbers those that are fearful, with
75% of them leaning more optimistic on how this technology may impact their jobs. With technical independent workers most likely to feel the brunt of A.I., a little over a third believe their work will be replaced in the short or long run, but24% believe their work will be complemented by A.I.
Independent workers with multiple revenue streams feel more secure than those working under a single employer
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Over
80% of independent workers strongly or somewhat agree that having multiple sources of income provides a greater level of security than relying on a single employer, and nine-in-ten (89% ) agree having control over their work life allows them to adjust to changing economic conditions rather than being tied to the decisions of an employer. Among those who also hold a permanent job, six-in-ten (60% ) believe they would be very likely to continue working as a freelancer and not look for another permanent job if they were to be laid off.
Women see a clear advantage to freelancing over traditional employment
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This year’s report reveals that women are pursuing freelance work for a number of reasons, including that they prefer to work from home (
41% versus31% men), want more flexibility in their schedule (39% versus22% men), feel burned out (25% versus17% men), want to avoid an unpleasant or toxic work environment (26% versus15% men), and experience a lack of enjoyment in their work (22% versus13% men).
The ability to “work from anywhere” remains a priority for freelancers and more plan to work and travel next year
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The ability to “work from anywhere” while traveling is a major factor or somewhat of a factor in the decision for nearly three-in-four (
73% ) freelancers who work independently to do so. Working remotely while traveling is becoming more common, with one-third (32% ) of independent professionals reporting they did at least some work from remote locations in 2022 compared to only23% in 2021.
Shake Ups Across Markets
The capital of country music is the fastest growing market for independent workers by both population and revenue
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Nashville ranks #1 for growth in population and revenue over the last two years. It’s estimated that this city saw nearly40% growth in revenue and almost25% growth in population. Creative independent professionals continue to thrive with earnings reaching over in 2022.$1.5 billion
Sunbelt havens continue to be among the top destinations for independent workers
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Over half a million independent workers are thriving in sundrenched markets like
Miami ,Orlando ,Tampa ,Jacksonville andPhoenix , and have earned an estimated in 2022, and have a higher than average proportion of those offering professional services. Individually,$24.3 billion Miami ranks #3 by population and revenue for independent workers, and has seen over30% growth in revenue and nearly15% growth in population since 2020.
While the population of independent professionals in Big Tech centers is slowing in growth, they are still among the highest earners in the country for freelance work
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Notable tech centers like
San Jose ,San Francisco ,Portland andSeattle , have seen the slowest growth in population for independent professionals. These markets experienced lower than average growth in independent workers and revenues in the past 5 years, and the recent downturn in the technology sector coupled with high costs of living was likely a major driver.San Francisco has seen negative growth in population among creative, technical, and professional workers since 2017. That said, these workers are still among the highest earners in the country, with independent professionals inSan Francisco andSan Jose earning just under on average in 2022.$60,000
For more detailed information and to view the full report visit fiverr.com/freelance-impact.
About Fiverr
Fiverr’s mission is to revolutionize how the world works together. We exist to democratize access to talent and to provide talent with access to opportunities so anyone can grow their business, brand, or dreams. From small businesses to Fortune 500, over 4 million customers worldwide worked with freelance talent on Fiverr in the past year, ensuring their workforces remain flexible, adaptive, and agile. With Fiverr’s Talent Cloud, companies can easily scale their teams from a talent pool of skilled professionals from over 160 countries across more than 600 categories, ranging from programming to 3D design, digital marketing to content creation, from video animation to architecture. Don’t get left behind - come be a part of the future of work by visiting fiverr.com, read our blog, and follow us on Twitter, Instagram, and Facebook.
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Holly Steffy
press@fiverr.com
Source: Fiverr International LTD.