According to Patrick Molyneux, partner and head of products and partnerships at KPMG Acceleris, 42% of UK firms’ workforces include flexible freelancers. This shows that the UK is seeing a continuous rise in the number of UK freelancers, with more companies embracing flexible work models and actively seeking out freelance talent, indicating a growing job market for freelancers in the UK. 

Fiverr’s 2024 UK Future Workforce Index highlighted a growing demand for AI skills, with over 80% of businesses willing to pay an average of 45% higher wages to secure candidates with this expertise.

Among the key trends driving the rise in freelance work include: 

Increased demand from businesses

Businesses are continuously seeking professionals who are skilled in various areas such as website and software development, social media management, and content creation. As a result, the demand for freelance workers has increased, hence the popularity of platforms such as Fiverr. 

Young demographic participation

Young people who are looking for employment opportunities can use freelance roles as a way to earn money whilst showcasing their skills and talents. Graduates from the university may find it challenging to acquire job opportunities right away, so undergoing training via online courses or workshops allows them to be prepared to showcase their skills via a freelance job if they get the opportunity. 

Challenging job market

Due to the challenges of the current job market, many have considered or looked towards freelancing opportunities to keep their skills active, whilst making connections and earning money so they’re ready for potential employment opportunities should they arise. 

The lack of job vacancies and competition in cities such as London is drawing more businesses to become self-employed and utilise their skills on a contract basis. 

Towards the end of 2024, Reed reported the number of job vacancies posted on its website had fallen 13% between October and November – and is now 26% lower than it was in 2022. This is supported by recent data from the Office of National Statistics, which also revealed that the number of job vacancies fell by 31,000 between September and November.

Technological influence

Thanks to new and innovative ways of working and technological influence, various platforms allow freelancers to advertise their services as well as collaborate with their customers and work effectively. 

Flexibility

One of the main benefits freelance work brings is its flexible nature. You are not tied down to a specific schedule of work. You can work at any time at any place, as long as the work is completed. This is beneficial for those who are looking for a flexible schedule. 

Tackling the skills gap

The rising skills gap along with economic pressures is driving businesses to consider more freelancers. This means that organisations do not have to spend more on training and equipping new hires with the necessary skills, as freelancers will already have the desired skills to hit the ground running.  

Embracing AI Tools

AI is becoming a key tool for businesses and freelancers alike. Platforms such as ChatGPT and Google Gemini are assisting freelancers draft proposals and managing marketing tasks more efficiently.

According to a Fiverr study, 18% of business leaders are hiring freelancers with AI skills that their full-time employees lack.

For freelancers looking to stay competitive, learning how to leverage AI tools will be essential; when it comes to productivity and time management. 

Is it time for you to go freelance? 

Going freelance brings many advantages to professionals and businesses. For professionals, the option of flexibility and a positive work-life balance can’t be underestimated and for organisations who are worried about the skills gap, hiring a freelancer can be a valuable temporary fix to meet goals and keep things moving in the right direction. 

The number of freelancers will likely continue to rise, so if you are considering becoming one or hiring one, it is certainly a good time to inspect the market! 

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