The way work has changed so much in the past few years.
We’ve seen remote work become normal, people prioritize meaning over money, and independent talent has become a mainstay in the market.
As we move into 2023, these trends will only continue as market forces push us into the work of the future.
As usual, this revolution is being spearheaded by freelancers who are not only redefining work for themselves, but also contributing to the resilience of the wider economy.
Sector
The start of the year saw continued layoffs in the technology sector, leading to a large pool of highly skilled talent entering the market.
Layoffs are never easy, especially when they are caused by firms that have grown unchecked for years without planning for the possibility of a market downturn.
Inflation is still kicking our asses and interest rates are holding us hostage, there are constant rumors of an impending recession.
That’s one of the reasons some companies are downsizing or putting hiring freezes in place – everyone’s preparing for the worst, which hasn’t happened yet.
Fiver
When recruitment pauses, work continues. Fiverr found that 78% of companies will rely on freelancing rather than hiring in 2023.
Post-pandemic remote access policies make it easier for freelancers to integrate. Critical talent gaps make this necessary.
Q3 2022 was challenging for the markets – financial markets were fueled by uncertainty – but strong growth is expected in 2023.
Free-standing growth is lumpy; a rising tide does not lift all boats. However, the freelance revolution is ahead of its time
Economic
I’m a big believer in being prepared for the worst, but the constant fearmongering of a recession adds to the economic uncertainty we all face.
People, companies and states should always be prepared for an economic downturn, instead of “preparing” at the last minute.
Freelancers are in a better position than most to weather the recession with multiple income streams and more nimble business models that can adapt on the fly to changing market conditions.
Companies
Companies are leveraging independent talent to build more resilient businesses amid this uncertainty.
A recent study by Upwork found that 79% of companies agree that working with freelance talent allows their business to be more innovative.
84% of hiring managers who work with freelancers say they are confident in their company’s ability to respond to disruption, compared to 69% of those who don’t.
A hiring freeze doesn’t mean work stops and the freelance workforce rises to the challenge.
The number of freelancers has skyrocketed over the past year as workers define what’s important to them and create work that meets those criteria.
Workforce
Data from Upwork shows that 39% of the US workforce did freelance work in 2022, and data from MBO partners suggests that the number of freelancers increased by 26% from 2021 to 2022.
This huge increase in freelancers is being met by a market that is ready to more intentionally incorporate freelancers into traditional companies.
Generation Zers continue to enter the workforce in large numbers and change the way work is done.
Gen Z is the most diverse generation to date, which is a huge boon for an economy that must continue to adapt to our changing world.
The trick will be for established leadership in existing companies to recognize the benefits of diversity and create workplaces that welcome new talent and divergent thinking.
Gen Z is also the most entrepreneurial generation to date, with most saying they want to start their own companies.
Redefining
They are also redefining the traditional path to work, with record numbers saying they are putting off or skipping college to take a more direct route.
Entrepreneurship is a great way to go beyond conventional standards and qualifications by proving your worth in the marketplace, not with your resume and diploma.
These are trends the market is already leaning towards, and the presence of fresh young talent will only serve to increase the pace at which we adapt to the new way of working.
Another hot topic this year is the increased presence of artificial intelligence in the workplace.
Whether you’re writing your next novel with ChatGPT or swearing by AI in all areas of your life, the truth is that we’re all going to have to figure out how to adapt to this new workplace reality.
AI platforms can feel especially dangerous to freelancers as companies look for low-cost solutions for creative work.
As with all innovations, we will need to carefully consider the pros, cons and ethics of AI while rethinking our business models to take advantage of it.
All these trends point to the rise of independent work as a means for individuals to design better work contexts and for companies to adapt to changing market demands.
No one has a crystal ball to tell us what work will be like by the end of 2023, but it seems clear that freelancers will play a key role in what’s to come.
Sources: blog.freelancerunion | Forbes