Are More People Working Freelance During The Coronavirus Pandemic? A Look At The Numbers

More Americans than ever are turning to freelance work as the pandemic accelerates existing trends toward flexible work arrangements.

Data from the freelancing platform Upwork indicate fully a third of the workforce is now made up of freelancers. The proportion was on the rise even before COVID-19 arrived due to an expanding gig economy, but the shift to remote work has made many companies and employees question the utility of conventional jobs.

Upwork’s data show freelancers making more money, with 85% looking to offset COVID-19 losses with freelancing in the future. The shift has been greater among the young and old, with 65% of older freelancers doing so to transition to retirement. Fully half of workers 18- to 22 years old have taken to freelance work in a challenging economy.

The pandemic has been a body blow to the U.S. jobs market, costing 22 million jobs in March and April. Since then, about half of the jobs have come back.

The Bureau of Labor statistics put the August unemployment rate at 8.4%. The simultaneous shift toward freelance positions didn’t reverse itself. Projections indicate freelancers number 65 million for 2020 and make up 35% of the workforce. The proportion is expected to grow to 40% by 2028.

Julia Pollak, an economist with ZipRecruiter, said in an interview with NPR freelancers usually don’t receive benefits, and often have looser relationships with their bosses and coworkers.

"I think now these companies are starting to see, 'Hey, having these folks at home is saving me money. Hey, I don't see those people, so do I really need to be giving them benefits?’” she said. However, “the vast majority — 90% of active ZipRecruiter job seekers — are looking for a permanent, full-time positions.”

Pollak also noted workers want nonmaterial benefits, such as “a sense of purpose and a mission where they make real connections with co-workers.”