How Freelancers Survived Unemployment in Pandemic/Recession

Freelancing is the way of the future. At the very least, this is what futurists anticipate will occur. People predict that at some point in the future, the United States will become a free-agent nation where individuals will market their services independently.

The idea of having a job that requires you to put in 40 hours a week will lose ground in the coming years. Even though this is simply a prediction, there were strong evidence indicating that this scenario was moving closer to becoming a reality when COVID-19 hit.

What specialists anticipated would take place over the course of three years really occurred in just three months. For instance, almost immediately after the pandemic began, there was an almost instantaneous increase from 24% to 34% in the number of job posts for temporary positions.

Before the pandemic, only 12% of communications-related job advertisements were for temporary positions. After that, it had risen by a factor of four. The percentage of temporary marketing jobs increased from 8% to 28%. And even HR positions were turned into independent contractor work.

Consequently, we need to find out how the current situation is going to influence the work that will be done in the future. Let’s take a look at the ways in which COVID changed the work landscape, as well as what the future might have in store for us.

The Global Rise of the Freelancer

It happened very quickly, and as a result, millions of individuals were placed on unpaid furlough, with some of them never going back to their previous jobs. By the end of May, more than 40 million people in the United States were without jobs. With further millions being added to those totals on a weekly basis.

People had little time to grieve or freak out, so in order to make ends meet, they turned to freelancing work. Because of this, it appeared that employees were increasingly transitioning into the role of freelance workers.

Employers Are Increasingly Relying on Freelancers

Because more people are going into freelance work, it stands to reason that more employers will start hiring freelancers. It was necessary for businesses to find a mechanism to shift during lockdowns without negatively impacting their productivity or income. In order for them to stay alive, they had to reduce their expenses.

According to the results of one poll, 45% of recruiting managers anticipated a freeze on the hiring of new workers. 73% of those surveyed, however, were planning to either keep or increase their hiring of independent professionals. Some people even hypothesize that the shift to remote work will have long-term ramifications for the way that managers find candidates to fill open positions.

This is a possibility, especially considering the growing number of people who are accustomed to working from home. Employers are starting to become more open to the concept of remote work, which means that they will need to adjust their approach to recruitment in order to account for the fact that they will no longer be dependent on the labor markets in their respective locations. The increased number of potential candidates will make it less difficult to find talented individuals.

One report indicates that between April and June of 2020, the number of freelancing job postings climbed by more than 25 percent. The trend is probably due to an increase in the number of businesses reevaluating their expenditures and choosing to employ a staff that is flexible (and agile). The number of job ads for freelancing work increased by 41% by the second quarter of 2020. (compared to 2019).

The International Labor Organization of the United Nations estimated that the number of working hours that were lost during the second quarter of the year 2020 was equivalent to the loss of 400 million jobs that were full-time. Those who made the transition to freelancing were presented with an opportunity to make up for the income they had lost.

Take a look at some of the following examples of rapidly expanding freelancing jobs:

● There has been a 30% annual growth in the demand for mathematicians and statisticians.
● The previous number of game creators was 64%, and now it’s 68%.
● Employers of people specializing in e-commerce professionals (up 54%).
● Those in advertising (up 28% from 8%).

As we move into the post-pandemic era, we are witnessing a decline in unemployment as well as an ongoing increase in labor that can be done from home or independently. Nearly 81,000 new temporary jobs were added in the United States in January 2021. According to reports, firms are increasingly becoming aware of the benefits that come with utilizing contingent workers as opposed to full-time staff. Costs are decreased as a result of rates being based on projects as opposed to hourly wages or salaries and as office usage is reduced. Freelancers are forming partnerships with businesses of all kinds to provide customer support, construct e-commerce platforms, and design websites and mobile apps.

On the other hand, freelancers have a positive outlook on the gig economy.

Freelancing is something that around 58% of professionals who are new to working remotely are currently considering doing in the future. And the percentage of working professionals who supplement their income by freelancing full-time rose to 36%, from 28% previously.

Preparing Yourself for a Career in Freelancing

According to a variety of statistics, the freelancing market is experiencing an increase in confidence. Companies and professionals are both willing to make the transition since it results in cost savings, increases flexibility, and opens the door to more chances to earn revenue (for both).

Will working as a freelancer provide the same level of security as full-time employment? It really depends on the person and the circumstances surrounding them. Any roles run the risk of being terminated prematurely owing to occurrences that cannot be predicted. But at least with freelancing, professionals can serve numerous clients at the same time, and businesses can adjust their workforce size according to the needs of the business.

As state governments remove interim shutdowns on companies and schools return to in-person instruction, we are beginning to observe a patchwork landscape of lost retail outlets, restaurants, salons, and entertainment places that could not survive the COVID-19 pandemic. This occurs as governments in several states end their brief shutdowns of commercial operations. While the unemployment rate has been declining, millions of Americans are still considered to be underemployed, and many of those who have returned to the workforce have had to accept pay cuts of 10% or more (the number of such cuts increased by 80% in June 2020 compared to the period before COVID was implemented).

While economists, researchers, and scholars are still trying to make sense of the immediate and long-term economic impact, certain clear patterns are emerging that have led me (and other coworking leaders) to believe that shared workspaces will become essential to economic recovery in the coming months and years, especially in small and medium-sized cities. This is especially true for cities with a population of under a million.

Coworking will help those establishing new career paths in the wake of the COVID-19 disaster by lowering initial expenses, facilitating the development of new professional networks, providing a source of much-needed optimism, and offering solutions to frequently expensive challenges. They are locations where we will obtain peer mentorship in our work, but what’s more vital is that they are places where we will enhance our lives by sharing them with our neighbors, which is a component of our days that we badly lack.

Remote Work is Here to Stay

A sizable portion of the workforce still operates out of their homes, even if businesses have been given the green light to reopen. Gallup found that 33% of American workers regularly do their duties from a remote location and 25% do so “sometimes.”

Hundreds of businesses of all sizes will likely adopt this practice, as it is unquestionably the best method to ensure long-term success. It’s tough to portray a professional atmosphere if you don’t have a physical location to call home. Many telecommuters seek out intimate coworking communities to get the rewards of social interaction while maintaining their independence. If they need a place to socialize and get work done simultaneously, they will inevitably join a coworking space. However, this is not to imply that cultures in far-flung locations can’t succeed. On the other hand, coworking communities attract those who want to be part of a social environment while they work and who need a space that provides such an environment.

Small Businesses Are Poised to Experience Rapid Growth.

In order to make ends meet, entrepreneurs running one-person shops or small businesses of any kind will need to get resourceful. They’ll have questions and issues that need solving, calling for the aid of complementary businesses and an extensive network of industry professionals. Coworking spaces help emerging businesses save money on infrastructure costs while providing easy access to pools of skilled labor and creative ideas. There will be a higher success rate for these startups thanks to coworking groups.

As the number of coworking spaces continues to increase, it will have a positive impact on local economies.

Collaborative office spaces are great for generating word of mouth advertising. It’s common practice for locals to chat about recent events whenever something noteworthy occurs. Members of Radius are not only in the know about all the newest restaurants and businesses, but they are also frequently instrumental in helping these places get their feet wet. Members of coworking spaces frequently have more adaptable work schedules, allowing them to take advantage of the city’s many daytime attractions, such as new lunch spots, public parks, midday art breaks, and more. Coworking spaces are important because they facilitate the sharing of information across sectors and companies that might not otherwise interact.

Most people who work in open offices, like myself, do not frequent fast food restaurants for lunch. This piece of knowledge is crucial to understanding the value of coworking. According to studies conducted by Michigan State University’s Center for Community Economic Development, 73% of consumer spending at locally owned and operated businesses stays within the local economy. When patrons shop at chain or franchise locations, however, only 43 cents of each dollar stays in the local economy. Staff at Franco’s Cafe, our go-to spot for a quick lunch, are undoubtedly familiar with our identities thanks to our frequent visits, and those at Jekyll & Hyde and Cloud 9 can probably guess who we are based on our frequent spending there. Additionally, we frequently go to the bars owned by our own members, Room 33 and Erie Ale Works. All areas of life are represented in coworking spaces, and members work together to better the neighborhood (p.s. This is why picking the right site for your coworking space is incredibly important).

In addition, we do not merely contribute to the economy through our purchasing power. As a result of the connections they create, the trust they develop with one another, the opportunities they uncover, and the teams they form, many members of coworking spaces go from working alone to becoming small business owners and employers. Their growing businesses have opened them new job prospects. When we help one another, we not only help ourselves, but also help the community as a whole.

Working Together Towards Recovery

Undoubtedly, these are trying times. In terms of the economy, more challenges will need to be met. Furthermore, we must overcome these challenges despite being emotionally drained. Remote employees, freelancers (especially those who turn to freelancing out of necessity), and small businesses will find it difficult to operate properly when the outbreak has passed.

On the other hand, there is something more we need to know:

There are many business owners who have started out with nothing more than a laptop and grown their firms into pillars of the local economy. It seems that there are four things that everyone seems to need. For this, you’ll need a:

– Computer
– Connectivity to the World Wide Web
– An unwavering resolve to overcome whatever obstacle lies ahead.
– And people who genuinely wish for the happiness and well-being of their neighbors.

Finally, coworking provides a distinct advantage over working from home or in a conventional workplace. Join a group to reap the benefits of networking without giving up your autonomy. You’ve not stuck anywhere and can come and go as you like; however, if you’d like to connect with folks who are prepared to lend a hand, you should head to a specific spot.

About 2 million freelancers, telecommuters, and business owners use coworking spaces. Furthermore, the two million members are accountable for an annual economic impact of about $40 billion to the United States. There is more to these sectors than just their economic impact; communities of professionals support, inspire, and believe in one another. They consist of concerned members of the public who advocate on behalf of small business owners by encouraging others to buy from them. They’re the ones who, right when you feel like giving up, give you the encouragement you need to keep going. As a result, we’ve concluded that shared office spaces, also known as coworking spaces, will play a crucial role in determining which areas will recover quickly and fail. There is strength in numbers, so if you are among those trying to rebuild, you shouldn’t try to do it on your own but rather you should reach out to a local coworking community, explain what you can provide and what you need, and ask for assistance. We promise to support you in every way we can.

If you would like to learn more, we have a lot of articles that may help you in your business. Take a quick look at How to Transition Your Business Online, it may help you expand your horizons.