The Pandemic Created 20 Million New Freelancers. Who Are They?
The pandemic changed virtually every aspect of life, from how we work to how we relate. It also changed how we freelance. The economic storm that followed the initial lockdown, with nearly 15% unemployment, was described by the IMF as the “worst economic downturn since the Great Depression”. That should have been great for freelancers, right? Well, yes. And no.
Upwork’s annual Freelance Forward study, conducted by Edelman Intelligence, shows that 28% percent of freelancers stopped freelancing between March and June of 2020 at the peak of the pandemic. Most of them were in industries where remote work was not possible. But, for another 20 million Americans, freelancing was the answer. Yowza!
The pandemic created a “new wave” of freelancers who started freelancing between March and June of 2020. They make up over a third of all current freelancers, but there are some striking differences between these newly minted freelancers and old-timers who freelanced before the pandemic. Read on to find out more about who they are.
1. New freelancers are millennial, educated, male, urban
There are four striking demographic differences between pandemic-created freelancers and existing ones. First, more than half of new freelancers are Millennial (57%)—that is more than twice as much as the next most common generation (Gen X, at 27%). Those who were already freelancing were more evenly split between generations.
Second, new freelancers have more education. Over a quarter more new freelancers have a bachelors or post-graduate degree, as compared with those who were already freelancers.
Third, a whopping 72% of new freelancers are male. Freelancing has long been a male-dominated career, with a majority of freelancers identifying as male for the last five years of Upwork’s study. The new wave of freelancers is notable because it has approximately twenty percent more males than in previous years. This may be partially due to the fact that over 70% of those who left the workforce during covid were female.
Fourth, at the time of the survey (May-June 2020), most new freelancers were urban. Sixty percent of new freelancers lived in urban areas, as opposed to just 35% for existing freelancers. This might change, as CNN proclaimed “the suburbs are cool for the first time ever.” Although CNN was talking about the UK, the US noted a similar boom in suburban real estate that has since leveled off. We may observe a demographic rebalancing next year, but it remains notable that a majority of new freelancers have the financial flexibility to remain in high cost of living areas.
2. Two out of three new freelancers are caregivers
New freelancers are much more likely to be caregivers than those who were already freelancing before the pandemic, with 67% of new freelancers being caregivers, as opposed to 38% for those who were already freelancing. Caregivers who freelance find that freelancing gives them:
The flexibility they need to be available for their families (76%)
More control over their lives (71%), and
An alternative way to support their families without a traditional job (69%).
Freelancing is also becoming a more attractive option to non-freelancers, as two out of three non-freelancers now say they would consider freelancing as a career option if they needed to care for a relative.
3. Most new freelancers are “accidental freelancers”
New freelancers in 2020 were much more likely to have begun freelancing out of necessity than in previous years. This year, 54% of new freelancers started out of necessity, as compared with 35% for those who were already freelancing. That means just over 10 million new freelancers are “accidental” freelancers. Welcome!
The top three times new freelancers started freelancing this year were:
During or right after finishing education,
After being laid off/losing a job, or
After a significant family change.
4. New freelancers are in it for the long haul
Regardless of whether they became freelancers by necessity or choice, these new freelancers are here to stay:
60% of new freelancers say there is no amount of money that could convince them to take a traditional job
96% of new freelancers are likely to do some freelance work in the future
90% of new freelancers say the best days for freelancing are still ahead
What do you think? Let us know about your 2020 freelancing experience in the comments!
