The freelance workforce is rapidly expanding, raising concerns about market saturation
In a previously reported article on how to develop a top-rated freelancer persona, The Freelance Informer highlighted that the number of people joining the freelance economy is growing to the tune of 1.57 billion freelancers worldwide, making up 46.7% of the global workforce. In the US alone, more than 64 million people are freelancing. That’s a lot of competition. With more people choosing and sometimes being forced to go freelance, is there enough freelance work to keep everyone afloat?
There are only so many jobs
Graphic design, writing and content creation, web development, digital marketing, and IT/software development remain prominent roles on freelancer platforms such as Upwork and Fiverr. The degree of competition though is an eye-opener.
While precise, real-time figures are difficult to get, a search for “graphic designer” on these platforms often reveals dozens, if not hundreds, of applicants/profiles open to bid for a single client or project. This highlights that possessing the necessary skills alone just isn’t enough. Freelancers must also excel at self-promotion and have a digitally ready portfolio to show on their own website, their LinkedIn profile and when at networking events. Newcomers to these platforms will also have to build up the number of projects completed on the platform to get raction, which in no way is a reflection of the experience or skills.
However, beyond these typical freelancer roles, when comparing the overall number of freelancers with the number of freelance opportunities, there’s a big imbalance.
At the time of writing, there were 560 UK-based freelance jobs posted in the past month on LinkedIn. In the last 24 hours, there were 157 freelance opportunities in the UK. Once you take into account the type of work and skills needed, that does not leave that many jobs on the table.
With each passing year, however, we must come to the conclusion that some of the functions carried out by these freelancers could be streamlined or replaced by AI. It is therefore wise, to be among the first applicants for those freelance roles posted in the past 24 hours. Get in early.
Mixed messages
Freelancers will also feel like they are getting mixed messages week-to-week on the state of freelancer recruitment. Recent reports indicate that salaried job openings are experiencing a drop. That historically indicates companies are looking for flexibility and lower overheads and that means freelancers will be on their radar. However, The Freelance Informer’s analysis of the UK’s job market stresses the importance of being adaptable in the face of these changes. This means that although there is a lot of freelance work, it is still subject to the economic climate or sector-specific challenges.
The banking sector has very mixed messages about their contractor hiring intentions for 2025. Citigroup, for example, is looking to cut a significant percentage of its external contractors to bring more talent in-house due to regulation challenges and fraud, as previously reported by The FI.
Lloyds is also making big changes to its hiring practices. By the end of the year, nearly half of the bank’s engineers will be based “in-house” but based outside the UK in India, according to Retail Banker International. The report stated, citing an internal presentation:
The bank aims to have 4,000 permanent employees working in technology and data in India by year-end. This will represent nearly half of Lloyds’ global IT workforce. The Hyderabad centre is recruiting for roles such as full-stack, cloud, and quality engineers, as part of an ongoing overhaul of Lloyds’ IT function. In the UK, around 6,000 Lloyds IT employees were informed last month that their jobs were at risk.
So, what does this all mean for freelancers?
Freelancers must be on top of the news so they can prepare for any industry shifts in hiring trends. They also have to keep on top of what fellow freelancers in general and in their industry are saying on social media such as LinkedIn, in webinars, online communities and meet-ups.
Sometimes a comment in a post can bring to light how a client is changing their stance on outsourcing. For example, one contractor who was already in the onboarding process for a major US bank only found out about their change in contractor hiring policy after reading a post on Reddit.
There is also a lot of chatter about recruiters or hiring managers stringing candidates along for weeks after providing tests, work samples and even face-to-face interviews. Ghosting is the new normal and it stinks.
While opportunities exist, particularly in high-demand areas, you must remain proactive. You have to create your own opportunities. That means you cannot be overly reliant on agencies or platforms to get noticed or contacted by potential clients. As always, the freelance way of working demands resilience, a willingness to evolve with the recruitment climate and the ability to spot a recruitment shark a mile away.
Freelancing can be part of your career timeline when it suits
Some people are freelancer diehards and can’t see themselves working for a company as a permanent employee. However, if you see an amazing permanent job that offers you flexibility, for example being able to work remotely, or with on-site childcare and a great pension plan, there is nothing to stop you from taking it.
Some companies such as Unilever are embracing new ways of working. For example its U-Work programme gives employees the freedom and flexibility associated with contract roles with the security and benefits typically linked to regular employment.
The company explains:
People in U-Work don’t have a fixed role. They work on varying assignments, and between assignments are free to do other things that are important to them. They get a monthly retainer and specially designed suite of benefits whether they’re working on an assignment or not. Assignments can have varying work patterns – anything from a few days a week for a few months, to short, concentrated bursts of full-time with breaks in-between. And they get paid for each assignment when they’re working.
Once more companies come on board with this line of thinking, we could see a more blended or “workstyle” approach to working. The thing is, you can always go back to the freelance economy when it suits you. But a word of warning: it’s very likely to be an even more crowded market when you do go back, so keep your portfolio and skills sharp and up-to-date.
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