New research from freelancer tech platform Worksome and the Association of Independent Professionals and the Self-Employed (IPSE) has shown that close to half of UK freelancers (47 per cent) have seen increasing demand due to the COVID-19 pandemic and the widely-reported “Great Resignation”.
Worksome revealed in a study last month that 45 per cent of freelancers in the UK and US had seen greater demand in 2021 due to the Great Resignation, with the new study more closely examining the impact of the phenomenon in the UK.
The Great Resignation arose as a result of the pandemic leading many employees to reassess their careers, work-life balance and overall job satisfaction and ultimately to resign. This led to both an influx of new freelancers as well as an increase in demand for freelance services as businesses sought to fill the gaps left by resignations.
15.8 per cent of UK freelancers polled by Worksome and IPSE said they became self-employed as a direct result of the Great Resignation and 47 per cent said they had seen increased demand due to it. Among former full-time workers, 57 per cent were earning more as freelancers and 74 per cent said they were happier.
The survey also examined freelancer savings habits, finding that 55 per cent saved money during the pandemic anticipating a period of no work. However, 9 per cent said they were not saving any money. 24 per cent said that they were forced to use all or most of their savings during the pandemic, while 18 per cent used either their credit card or overdraft for financial support.
57 per cent managed to save towards retirement during COVID-19, but 13 per cent said they hadn’t been able to save as much as they like due to debts accrued during the pandemic and 7 per cent said debt had prevented them from saving at all.
Worksome CEO and co-founder Morten Petersen said: “While the freelance market may be buoyant again, it’s clear that the darkest days of the pandemic and lockdown will have an impact on the freelance community for years to come.”
“It’s crucial for government, business and civil society to come together to support this group of crucial workers who were not necessarily supported as well financially during the pandemic as others. Meanwhile, unfair tax rules on COVID relief grants continue to penalise this group of often highly skilled workers who contribute £162bn to the UK economy.”
IPSE Director of Policy Andy Chamberlain added: “Today’s research paints a mixed picture of the self-employment landscape. While we at IPSE welcome the increase in demand and the shift from some full-time employees to freelance work, it is clear that COVID-19 has been devastating for contractors.”
“After 11 years of continuous growth, the number of self-employed workers has fallen from 5 million in 2019 to 4.1 million in 2021. Moreover, for thousands of those that have remained as freelancers, they have lost work, fallen into debt and been severely impacted by the reforms to IR35 in April 2021. As we (hopefully) start to recover from the pandemic, the government needs to clear up the confusion around IR35 and help self-employed workers that have fallen into debt during lockdown.”
