A Future Full of Freelancers: Is it a Bad Thing?

Over the last ten years -driven by changes in technology and a weak economy- our workforce has seen an ever increasing percentage of so called “contingent” or freelance workers. In 2004 they were reported to be 42.5 million, but a new study now puts freelancers at 53 million –or one third of the workforce. That’s very high!

I’ve often wondered what impact an increasing number of workers –mostly without benefits, without unemployment insurance or workers’ comp, or a stable income– would have on society. I believed having too many freelancers in the workforce was a symptom that something had gone fundamentally wrong with the health of our economy and that we had somehow failed this group. It turns out, my fears might be unwarranted.

A new independent study that surveyed 5,000 freelancers found a brighter picture. Granted the study was commissioned by Freelancers Union and Elance which have an interest in making freelancing sound attractive- but it’s the best data we have right now.

Where I was wrong:

I assumed that most people who freelanced did so by necessity and not by choice. It turns out 53% of freelancers are doing so willingly. They want “the freedom to choose what sort of work I do without my schedule and choices being controlled by someone else”.
I assumed freelancers made less money than when they had a traditional job. In fact, 77% are making the same or more than before. Who knew?

Not surprisingly, the study found that Millenials (under 35) are more likely to freelance than older workers, and for many, that’s all they know. Is it any wonder that –if they have a traditional job- this generation is much quicker to quit and move on than the previous generations?

I still think freelancers face great challenges, the largest one being a lack of stable income. But I no longer see them as victims of an economy that let them down, (although some of those DO exist). But rather see them as empowered, self-driven individuals using technology to call their own shots. So I can breathe a little easier, even when freelancers make up half of the workforce as predicted, it won’t be the end of the world.