Freelancers: We are the future

Here are relevant statistics and insights 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 freelancing in the U.S. The online survey surveyed 6,002 U.S. adults who had done full-time or part-time freelance work between August 2016 and July 2017. Self-employment was defined as temporary, project-based, or contract work performed at a for-profit or non-profit 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 who work regularly for clients, but also do other part-time jobs
• moonlighting (25%, 13.5 million)– Those who periodically take on freelance projects in addition to their traditional employment.
• independent business owners (7%, 3.6 million) — Full-time freelancers who assemble ad hoc teams of self-employed 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 be self-employed. Flexibility is considered a significant benefit and is favored by 60% of freelancers. Additionally, more than 50% of workers who quit full-time employment to become self-employed were able to earn more money in their first year of self-employment than they did in a traditional job. 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 getting invoices paid on time (or being paid in full) could be problematic.

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

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

shaping the future

As traditional full-time, paid middle-class 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 voting 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 elections for Congress and for governors. Seventy percent of respondents would prefer that political candidates and representatives address the needs of freelancers, because no matter how beautiful things may be for the select few who earn lucrative project fees, we are quite vulnerable.

Self-employed workers do not receive paid sick leave, holidays or vacations. 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