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Technology has made it a lot simpler than before for people to supplement their income with lucrative side hustles. While employees of all ages in the United States are receiving the biggest benefits, young freelancers in Asia are fast following suit.
According to a new study, the world's fastest-growing freelance markets and how they're altering the nature of work are highlighting the world's fastest-growing freelance markets and how they're reshaping the nature of work. According to the Global Gig-Economy Index issued Tuesday, America's gig economy grew the most in 2019, with freelancer earnings increasing 78 percent year over year.
The United Kingdom and Brazil, which both witnessed a 59 percent and 48 percent increase in gig worker wages over the last year, came in second and third, respectively. Asia, on the other hand, saw the largest regional gain, with profits rising by 138 percent across four nations. Pakistan led the pace, with a 47 percent growth in freelancer revenues in the previous year. Philippines, India, and Bangladesh rounded out the top ten.
In markets that are more established like the United States and the United Kingdom, many firms prefer to take less risk when hiring people. This is why freelancing continues to expand at such a rapid rate.
Many professionals also opt to freelance willingly for lifestyle reasons. Platforms enable them to do so, and the work-from-home and gig economies are appropriate for them.
In other areas, government-proposed outsourcing for industry, which is frequently accompanied by tax incentives, is a major driver of freelancer wages rise.
● Take, for example, Ukraine. Moldovan points out that it has developed a unique taxing system for IT outsourcers and goods firms that exempts them from paying value-added tax. It also permits them to hire freelancers as subcontractors who are not subject to labor taxes. These businesses could also benefit from eased foreign exchange regulations.
● In the Philippines, the government-funded Rural Impact Sourcing Technical Training Project equips indigenous people with ICT-related skills so that they may flourish as digital workers and entrepreneurs.
● Under the Digitize India Platform program, the Indian government gives freelancing possibilities for indigenous talent. The government also offers digital skills training through the India Skills Online initiative, and the Ministry of Skill Development and Entrepreneurship prioritizes young, women, and underrepresented groups.
Simultaneously, many freelancers in developing economies are young people wanting to start a career.
India is an excellent example, with many freelancers under the age of 30. There is a younger generation in India looking for more opportunities. The domestic market isn't particularly large or developed.
Thanks to Wi-Fi, video, and messaging services, a freelancer may now live and work from any place. As a result, several nations with a high number of freelancers have risen to become the top freelancing countries in 2019. They might better understand where to focus their search by looking at a list of the top freelancing nations.
As a result of the freelancing revolution, several nations have developed a reputation for having skilled freelancers in specific fields. For example, writing and translation freelancers abound in the United States, but excellent software development and technical knowledge may be found at a low cost in India.
According to studies, the increase in income over the last year is attributable in part to better opinions of the feasibility of such freelancing employment.
We're seeing an increasing number of professionals leave their jobs to work in the gig economy.
Whether it's because of the flexible hours, the lack of a boss peering over your shoulder, or the urge to start your own business, people no longer feel compelled to work in offices.
Having said that, here is the strongest freelance market in the world:
● USA: In only the previous year, freelancer earnings in the United States have risen dramatically, from 10% in Q2 2018 to 78 percent in Q2 2019, making it the largest in the world by far. This is a noteworthy trend since prior rankings of the top ten freelancing nations placed emerging economies like India much ahead of the United States.
An increase in professionals leaving full-time employment to pursue the freedom of freelancing has driven the growth of freelancing in the United States. Unlike most other freelancer markets, the one in the United States is made up of professionals of various ages who are increasingly recognizing that freelancing isn't just a side hustle. In the United States, 44 percent of freelancers are under the age of 34.
● Freelancers play an important role in the American labor market. Hundreds of businesses use gig workers on a regular basis, both on short- and long-term contracts. A large section of the US population is considering freelancing employment, particularly during the pandemic, when many people are staying at home and have more time on their hands.
● In the United States, the average hourly rate for freelancers is $28. This figure is greater than 70% of workers in the US economy as a whole (CNBC, 2019). This feature alone is anticipated to persuade more Americans to quit their office jobs in favor of working from home.
● The majority of the American workforce will freelance in the future. According to predictions, 90 million Americans will be freelancing by 2028, based on annual growth rates of 4.2 percent in 2016 and 0.6 percent in 2017—if the growth rate remains steady
● People between the ages of 18 and 29 are 53 percent more likely to find work using their cellphones as the number of Internet users in the United States continues to increase. This is a number of 28% for adults in the United States (Federal Reserve Bank of St. Louis, 2019). According to another research, more than 70% of freelancers find work via online markets, gig economy websites, and freelancing platforms.
● With 64% and 54%, respectively, Gen Z and Millennial freelancers believe that freelancing provides them with a temporary source of income. On the other hand, Freelancing is seen as a long-term career choice by 53% of Gen X employees. As previously said, freelancers earn more money than typical American workers, and they have greater scheduling freedom.
Getting a piece of the action.
Another research asked freelancers the same question but separated their responses by gender. Men like to be in charge above all else—this was the most frequent response from 69 % of respondents. 74 % of freelancers, on the other hand, stated that flexibility is more important to them than anything else.
With the exception of a few single-digit variations in some of the replies, MBO's 2020 survey findings for this question were virtually identical to those of previous years. However, according to the 2020 research, the proportion of women working independently has decreased from an average of 50% in prior years to only 42% in 2020. It is hypothesized that this is due to women working in roles that were significantly impacted by the COVID-19 pandemic.
Ages and Gender
In the United States, the majority of freelancers are under the age of thirty. 63.6 % of the population is under the age of 34, which is more than half of the population. In addition, 39% of freelancers are under the age of 24. Only 20.9 percent of those polled claimed they were above 45.
Males account for the majority of American freelancers. They account for 59 percent of all freelancers, while women account for 41%. (Forbes, 2019). Between the ages of 18 and 34, males make up the majority of the freelance workforce, but as they become older, women take over.
Final thoughts
People who switch from typical office desk jobs to freelance work do so for a variety of reasons. As the cost of rent and food continues to rise in major US cities, remote employment is becoming a more viable alternative for regular Americans. Freelancers who work remotely can opt to relocate outside of their locations without losing their jobs. However, not all cities are welcoming to freelancers.
