A new survey has revealed that demand for freelancers is increasing as a result of the rising cost of living and the “great resignation”. The survey, conducted by Fiverr and released on UK freelancer day, found that 20 per cent of businesses plan to use more freelancers due to rising costs.
The survey polled 1,500 UK freelancers and 1,000 business owners, with 42 per cent of freelancers saying that demand has increased since the start of the COVID-19 pandemic. 23 per cent of business owners say they may need to cut permanent staff as costs rise and, mirroring this, 31 per cent of freelancers say that demand for their services has increased due to firms cutting permanent staff.
Amid rising demand, 21 per cent of freelancers have sought to increase the services they offer, while 19 per cent have looked to tap into the increased demand by upskilling.
49 per cent of freelance respondents to the poll say they have increased their workload this year. 43 per cent say this is due to increasing demand, while 51 per cent have taken on more work as a result of increases in the cost of living.
Despite demand and the cost of living both rising, 61 per cent of freelancers have kept their rates the same, indicating a tendency to seek extra work rather than charging more. 40 per cent say they do plan to increase their rates at some point this year, with 68 per cent of that number saying the cost-of-living crisis had made them consider doing so.
28 per cent, meanwhile, said they had already increased their rates this year. 63 per cent of those freelancers had increased their rates by up to 10 per cent, while 32 per cent had increased rates by between 11 per cent and 25 per cent.
Looking to the future, a quarter of freelancers say that they earn enough from self-employed work but cannot afford to save and a further 25 per cent say they worry about needing to make ends meet in the future. 63 per cent said that they felt the rising cost of living would impact their retirement plans.
Fiverr’s VP of International Expansion Peggy de Lange said: “Since the pandemic, freelancers have become a vital part of the UK workforce, supporting businesses with a rapid shift to digital and remote work.”
“Now, with the rising cost of living impacting businesses’ bottom line, freelancers are helping to fill gaping talent gaps created by a combination of staff cuts and the Great Resignation. However, our data confirms that freelancers are also feeling the financial pinch, so government should ensure to support them and the integral role they are playing as this situation evolves”
