Freelancers: We are the future

Here are relevant statistics and observations gleaned from the fourth annual “Freelancing in America” ​​survey, conducted by the Freelancer’s Union. According to the organization, “Freelancing in America” ​​is the largest and most comprehensive measure of self-employment conducted in the US. The online survey asked 6,002 US adults who had done full- or part-time freelance work between August 2016 and July 2017. Freelance work was defined as temporary, project-based, or contract work performed at a for-profit or nonprofit organization or government agency.

About us

In 2017, 57.3 million of our fellow citizens, representing 36% of the nation’s workforce, participated in the independent economy and contributed $1.4 trillion to the American economy. The survey found that 63% work as a freelancer by choice, rather than necessity, and enjoy this way of working. Freelancers reported feeling positive about our work, with 79% preferring freelancing to traditional employment. Traditionally employed workers are more likely to feel respected, empowered, and engaged in our work environment. The survey designated the following independent categories:

  • independent contractors (35%, 19.1 million) — Full-time independent consultants whose only income is derived from client work
  • diversified workers (28%, 15.2 million) — Self-employed workers who regularly work for clients, but also do other part-time jobs
  • moonlighting (25%, 13.5 million)–Those who regularly take on independent projects in addition to their traditional employment.
  • independent business owners (7%, 3.6 million) — Full-time freelancers who assemble ad hoc teams of freelance specialists to form a consulting firm so that more complex and lucrative client work can be done
  • temporary workers (7%, 3.6 million)

What we like

Time and money impact the decision to become self-employed. Flexibility is considered a significant benefit and is favored by 60% of freelancers. Additionally, more than 50% of workers who left their full-time job to become self-employed were able to earn more money in their first year of self-employment than they did in traditional employment. Forty-six percent increased their project rates and hourly rates in 2017, and 54% said they planned to do so in 2018.

serious challenges

Sill, money is a problem for freelancers. Respondents reported that proper billable hours, negotiating fair project rates or hourly rates, and receiving timely payment of invoices (or receiving full payment) could be problematic.

On average, full-time freelancers log 36 billable hours per week. When the billable hourly rate or project rate is deemed inadequate, cash flow is affected and there may be difficulty meeting financial obligations. Unsurprisingly, the survey found that debt is also a worrying issue.

Access to health insurance and retirement savings are challenging. Full-time self-employed people rank health and dental insurance as top concerns; 20% have no savings in health insurance.

shaping the future

As traditional full-time middle-class paid employment continues to disappear, the ranks of independent consultants can only grow, making us a rapidly growing segment of the American workforce. Unfortunately, our government leaders are not attentive to the unique circumstances of the independent community or our potential for a voter bloc.

Eighty-five percent of those surveyed said they planned to vote in the 2018 midterm elections. If that statistic is accurate, it would represent nearly 49 million independent voters, more than enough to sway congressional elections and to governors. Seventy percent of those surveyed would prefer candidates and political representatives address the needs of freelancers, because no matter how beautiful things may be for the select few who charge lucrative project fees, we are quite vulnerable.

Self-employed workers do not receive paid sick, holiday or vacation leave. We do not receive cosponsored health insurance or retirement benefits. Billable hours can have feast-or-famine fluctuations that wreak havoc on our cash flow and our ability to meet important financial obligations. The 57.3 million independent consulting professionals in the US are in desperate need of political representation, advocates, and activism.

Thank you for reading,

Kim

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