Freelancing in America: A National Survey of the New Workforce

Freelancing in America Study
© Copyright 2014 Daniel J
1 Edelman Inc.
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Results Deck
September 2014
For more details go to:
https://www.freelancersunion.org/53Million

Research methodology
• An online survey of 5,052 US adults who have done paid work in the past 12
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2 © Copyright 2014 Daniel J Edelman Inc.
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months
• Data collected July 19 - July 31, 2014 by independent research firm Edelman
Berland
• Results are weighted to ensure demographic representation in line with the
United States Bureau of Labor Statistics 2013 Labor Force Statistics from the
Current Population Survey
• Overall margin of error of ±1.38% at the 95% level of confidence
NON-FREELANCERS
Definition:
- Individuals who earned
income through work but have
not engaged in supplemental,
temporary, project- or
contract-based work, within
the past 12 months.
Sample n=3,332
FREELANCERS
Definition:
- Individuals who have
engaged in supplemental,
temporary, project- or
contract-based work,
within the past 12 months.
Sample n=1,720

Study objectives
Freelancers Union and Elance-oDesk commissioned Edelman Berland, an
independent research firm, to conduct a study of the freelance workforce
within the US with the following objectives:
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1. Quantify the number of people freelancing in the US and their
economic impact
2. Assess the state of freelancing, especially current demand for freelance
services
3. Gather insights into drivers and barriers impacting freelancing
4. Gauge the outlook for freelancing, especially among millennials as they
become the majority of our workforce
This results deck is organized in sections to detail results on each of these
objectives.

Key findings (by objective)
1. Freelancing quantified
• There are 53 million people doing freelance work in the US – 34%
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of our national workforce
• People who freelance contribute an estimated $715 billion in
freelance earnings to our economy.
2. The state of freelancing
• Freelancers see growing demand. Twice as many have seen an
increase in demand in the past year as have seen a decrease (32%
experienced an increase versus 15% who have seen a decrease).

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Key findings (cont.)
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3. Insights into barriers and drivers
• 80% of non-freelancers say they would be willing to do work outside their primary job
to make more money.
• Earning extra money (but not financial necessity) and schedule flexibility are the top
drivers of freelancing.
• Finding work and, correspondingly, income stability are the top barriers to doing more
freelancing work.
• 69% of freelancers said technology has made it easier to find freelance work.
4. The outlook for freelancing
• 77% of freelancers say the best days are yet ahead for freelancing and 65% said
freelancing as a career path is more respected today than it was three years ago.
• Millennials are freelancing more than any other age group. Over a third (38%) of
Millennials are freelancers. They’re also most optimistic about freelancing – 82% say that
the best days of freelancing are yet ahead.
• 36% of moonlighters who have a primary job have thought about quitting to work
completely independently – this represents 5.1 million people.

© Copyright 2014 Daniel J Edelman Inc.
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6
Quantifying the
Freelance Workforce

There are 53 million people freelancing
in the U.S.
• Our survey of over 5,000 U.S. workforce members rigorously screened
respondents to determine the percent who earned freelance income in
the past year. Results showed that 34% of the U.S. workforce is doing
freelance activity.
civilian labor force at 156 million, we estimate that the U.S. workforce
currently includes 53 million people who are freelancing.
• A 2006 study by the U.S. Government Accountability Office found there
were 42.6 million “contingent workers” – for nearly a decade that was
the best guess we’ve had.
• These freelancers contribute an estimated $715 billion annually in
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• Based on the Bureau of Labor Statistics July 2014 estimate of the
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freelance earnings to our economy.
http://www.bls.gov/news.release/pdf/empsit.pdf

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Freelance
Business Owners
5%
10%
2.8M
Temporary
Workers
5.5M
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The freelance workforce:
5 freelancer segments
40%
27%
18%
Independent
Contractors
Moonlighters
Diversified
Workers
21.1M
14.3M
9.3M

How did we quantify freelancers?
Starting with the general U.S. workforce, each respondent ran through a series of
questions that carefully qualified their employment status and income in order to
detect freelancing that might otherwise go unrecorded. The following definitions and
examples explain 5 segments of freelancers captured:
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1. Independent Contractors (40% of the independent workforce / 21.1 million
professionals) – These “traditional” freelancers don't have an employer and instead do
freelance, temporary, or supplemental work on a project-to-project basis.
2. Moonlighters (27% / 14.3 million) - Professionals with a primary, traditional job who also
moonlight doing freelance work. For example, a corporate-employed web developer who
does projects for non-profits in the evening.
3. Diversified Workers (18% / 9.3 million) – People with multiple sources of income from a
mix of traditional employers and freelance work. For example, someone who works the
front desk at a dentist’s office 20 hours a week and fills out the rest of his income driving
for Uber and doing freelance writing.

How did we quantify freelancers? (cont.)
4. Temporary Workers (10% / 5.5 million) - Individuals with a single employer, client, job,
or contract project where their employment status is temporary. For example, a business
strategy consultant working for one startup client on a contract basis for a months-long
project.
5. Freelance Business Owners (5% / 2.8 million) – These freelancers have between one
and five employees, and consider themselves both a freelancer and a business owner.
For example, a social marketing guru who hires a team of other social marketers to build
a small agency, but still identifies as a freelancer.
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In order to qualify, freelancers had to have earned freelance income within the past 12
months.
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The following slide demonstrates how freelancers were screened through the survey
questionnaire.

Freelancer Identification: Flowchart of screening questions
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12
The State of
Freelancing: Detailing
Increasing Demand

Nearly one-third of freelancers report
increased demand for their services in the
past year
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In the past year, have you seen the demand for your
32%
freelance services change?
53%
15%
Increased Demand No Change
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Q44. In the past year, have you seen the demand for your freelance services change? n = 1,720

Education matters: Tech education, college,
and post-grad degrees see greater demand
than freelancers with only high school or
some college
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How much demand is there for your freelance services?
25% 19%
(by educational attainment)
15%
2% 4% 2% 3%
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Q43. How much demand is there for your freelance services? n = 1,720
20% 12%
56% 59%
60%
57%
64%
17% 18%
25% 21% 22%
Some High School or Less High School Graduate Vocational or Technical
College
Graduated College Post-Graduate Degree
Demand
Education
None Very Little

Experience matters: More experienced
freelancers see the greatest demand
(by length of experience as a freelancer)
8% 5% 1% 1% 3% 5%
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22%
18%
19% 23% 13%
21%
19%
20%
50% 60% 64% 57% 72%
58%
55% 47%
21% 18% 17% 20%
14%
19%
26% 28%
<6 months 6 months - 1
year
1-2 years 2-3 years 3-4 years 5-10 years 10-20 years 20+ years
Demand
Experience
None Very Little

The STEM skills gap shows: Freelancers in
STEM fields see greater demand than other
industries
(freelancers by industry)
2% 3%
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13% 19% 18%
20%
57%
50%
46%
60%
58%
41% 37% 35%
23% 19%
Computing, computing
peripherals or other IT
manufacturer
Data science and
analytics
Mobile and web
programming
Technology Other industries
Demand
Industry
None Very little
Q6. Please select the industry in which you currently work. n = 1,720

Freelancers provide difficult-to-find skills
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Select the option that best describes your views on how the
perception of freelancing as a career has changed compared to 3
65%
years ago
7%
28%
Freelancers offer skills that
might be difficult to find
traditionally
Neither/Balanced Freelancers rarely offer
anything that couldn't be
hired for traditionally
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Q57. For each of the statements below, select the option that best describes your views on how the
perception of freelancing as a career has changed compared to 3 years ago. n = 1,720

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Insights into Freelancing
Drivers and Barriers

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Would you be willing to do additional work outside of your
primary job if it was available and enabled you to make
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Most non-freelancers are open to
freelancing
Yes
80%
No
20%
more money?
(Non-Freelancers)
Q21. Would you be willing to do additional work outside your primary job(s) if it was available and enabled
you to make more money? n = 3,332

More than half of freelancers began
freelancing by choice, not necessity
“I had the degree and loved the work. Held down one
career while building this one. Retired from first career
and now, after 39 years, I only want to freelance part time
and I do not know when I will give it up.”
“I am very passionate about what I do, but I have a large
family. This allows me to be both a stay home parent and
have a small career. I like what I do, and I want to do it
my way is another big reason.”
“I am learning more effectively how to make money by
several different sources so if one source slows down, I
can rely on other sources instead of just an employment
income.”
“I don't have to worry about losing my job. I don't have
bosses dangling pink slips over my face and constantly
threatening to fire me.”
“I put myself through college, investing on my own, so
having enough money to live on was not a huge factor, so
after a few years I decided that pursuing a writing career
was a 'now or never' venture, and I've been doing it ever
since.”
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Which is closer to the reason you
originally started freelancing?
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Choice
53%
Necessity
47%
Q48. Which is closer to the reason you originally started freelancing? n = 1,720
Q51. Please explain why you choose to freelance. n=868

Earning extra money is the primary
reason for freelancing, but schedule
flexibility is also a top motivator
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Q34. What are your personal motivations for freelancing? Please select all that apply. n = 1,720
68%
42%
37%
33% 31% 30% 30% 29% 27%
22%
To earn extra
money
To have
flexibility in my
schedule
Out of financial
necessity
Ability to
choose my own
projects
To be in control
of my own
financial future
To be able to
pursue work I
am passionate
about
To gain
additional skills
or experience
To be able to
spend more
time with
friends and
family
To have
independence
from things
such as office
dynamics
To expand my
professional
network
Top 10 Personal Motivations for Freelancing

Fair compensation is important to all, but freelancers
place greater importance on controlling their destiny,
interesting work and flexibility, and less importance
on high pay
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Q22. How important to you are each of the following work characteristics. n = 5,052
78%
73%
67% 66% 65% 64% 64% 63%
59%
53%
81%
68%
64%
61%
57%
64%
71%
57% 55%
52%
Provides the
pay appropriate
for my skill-level
Allows control
of my own
destiny
Opportunities
to learn new
things
(challenging)
Ability to work
on interesting
projects
Flexibility to
work when I
want
Low stress Provides high
pay
Flexibility to
work where I
want
Ability to have
a positive
impact on the
world (fulfilling)
Is exciting
Importance of Work Characteristics
(Freelancers vs Non-Freelancers – Very/Extremely Important)
Freelancers

Finding work and income stability are
the biggest barriers to freelancing more
50%
47%
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Top Barriers to Freelancing More
(Self-Identified Part-Time Freelancers and Moonlighters)
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31%
23%
21%
13%
9%
2%
More stable income from freelancing
Easier to find freelance work
A more reliable way to ensure you receive
the pay you're due
Knowing which skills are in demand (so
that you can offer them)
Better availability of affordable benefits
Less administrative work required (help
with taxes, timekeeping, compliance,…
None
Other
Q32. Which of the following factors would lead you to do more freelancing work?
Please select up to three. n=1,344

But technology is making it easier to
find work
“The world is a big place. The internet has
made the world flat, essentially. There are
billions of people on this planet with access
to everything by everyone. If you create
something that no one else creates, or you
create it in a manner better than others, you
will succeed.”
“There are more avenues available to find
work, to make contacts, to connect with
others, etc. thanks to technology and its
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69%
Agree that technology has
made it easier to find
freelance work
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ability to network.”
“With the advent of the internet and social
networks, you can contact and learn about
other companies and people faster than ever
before.”
“10 years ago I would not as easily have
gotten business from clients across the
country let alone across the world.”
Q53_5. What do you think is different about the freelance job market today
compared to 3 years ago? Please indicate your level of agreement with the
following statements: Technology has made it easier to find freelance work

More than two-thirds of freelancers
also said social networking is
changing the dynamics of networking
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What do you think is different about the freelance job market today compared
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69%
23%
8%
to 3 years ago?
(Agree/Disagree - Social media is drastically changing the dynamics of
networking)
Agree Neither Agree nor Disagree Disagree
Q53. What do you think is different about the freelance job market today compared to 3 years ago? n = 1,720

Two in five freelancers have worked online
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Have you done a freelance project online –
meaning work that you found and performed
via the Internet?
No
58%
Yes
42%
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Q59. Have you done a freelance project online – meaning work that you found and performed via the Internet? n = 1,720

One in four find projects online in 24
hours; more than half (57%) find projects
online in 3 days
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31%
How long on average does it take you to find freelance projects that
26%
you look for online?
18%
11%
5%
Less than 24 hours 1-3 days 4-6 days 1-2 weeks 3-4 weeks
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Q59. Have you done a freelance project online – meaning work that you found and performed via the Internet? n = 1,720
Q60. How long on average does it take you to find freelance projects that you look for online? (i.e. between looking for an
opportunity and starting work of it) n = 714

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The Outlook for
Freelancing

The majority of freelancers feel that
respect has grown for freelancing as a
career choice
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Select the option that best describes your views on how the
perception of freelancing as a career has changed compared to 3
65%
years ago
7%
28%
Freelancing as a career
path is more respected
today
Neither/Balanced Freelancing as a career
path is less respected today
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Q57. Select the option that best describes your views on how the perception of freelancing as a career has
changed compared to 3 years ago. n = 1,720

More than one-third of freelancers expect to
increase the amount of time they spend
freelancing in the coming year
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97%
freelancers who consider
In the coming year, how do you expect
the total number of hours you spend
freelancing in a typical week to change?
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the increase in hours a
good thing
Q45. In the coming year, how do you expect the total number of hours you
spend freelancing in a typical week to change? n = 1,720
Q25. How many hours in a typical week do you do freelance work? n = 1,720
38%
50%
12%
Increase Stay the same Decrease

Additionally, nearly half expect their
income from freelancing to increase in
the coming year
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In the coming year, how do you expect your income from freelancing to
43%
change?
46%
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Q42. In the coming year, how do you expect your income from freelancing to change? n = 1,720
11%
Increase Stay the same Decrease

Most of us at traditional jobs probably
have coworkers who are moonlighting…
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16%
Of all workers with a
primary employer have
done work outside of their
main job in the past year to
earn additional money
14.3M
Moonlighters
Q11. Do you have an employer (i.e. company you work for)? If you are self-employed or freelance for clients, please select no. n= 5,052
Q12. Do you have more than one employer, job, or contract project? n = 3,492
Q13. Do you do any work outside of your primary position to supplement your income or earn additional money? n=2,898

5.1M
Potential New
Independent
Contractors
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One-third of moonlighters considered
quitting their job – that would be 5.1M
new independent professionals
Yes
36%
No
64%
Have you considered quitting your
job in order to work completely
independently?
Somewhat/
Very Likely
33%
Not Very/Not
at All Likely
67%
How likely are you to quit your
primary job in the next two years
in order to work entirely
independently?
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Q37. Have you ever considered quitting your primary job in order to work completely independently? n = 464
Q40. How likely are you to quit your primary job in the next two years in order to work entirely independently? n = 464

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More millennials freelance than any
other age group
62%
Freelance Participation by Age
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Q2. What is your current age? n = 5,052
66% 69% 68%
38%
34% 31% 32%
18-34 35-44 45-54 55+
Non-Freelancers

Additionally, millennials are looking for
fulfilling and exciting work more so than
other generations
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Q22. How important to you are each of the following work characteristics. n = 5,052
80%
71%
69% 69%
64%
62% 62% 62%
59% 59%
80%
67%
69%
64%
62%
65%
54%
47%
60% 58%
Provides the
pay appropriate
for my skill-level
Provides high
pay
Allows control
of my own
destiny
Opportunities to
learn new
things
(challenging)
Ability to work
on interesting
projects
Low stress Ability to have a
positive impact
on the world
(fulfilling)
Is exciting Flexibility to
work when I
want
Flexibility to
work where I
want
Importance of Work Characteristics
(Millennials vs Adults 35+– Very/Extremely Important)
Adults 18-34 Adults 35+

And millennials are most optimistic about
the future of the freelance job market
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How do you see the future of the freelancing job market?
82%
(Millennials vs Adults 35+)
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Q56. How do you see the future of the freelancing job market? n = 1,720
18%
74%
26%
Best days are ahead Best days are behind
Adults 18-34 Adults 35+

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Appendix

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This study commissioned by:
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Freelancers Union
Freelancers Union’s 250,000 members believe all workers should have the freedom to build
meaningful, connected, and independent lives – backed by a system of mutual and public
support. More than one in three working Americans is an independent worker. That's 53 million
people – and growing. They are lawyers and nannies, graphic designers and temps.
Freelancers Union serves the needs of this growing independent sector.
Elance-oDesk
Elance-oDesk is the world’s largest online workplace. More than 2.5 million businesses and 8
million freelancers tap into www.Elance.com and www.oDesk.com to work together via the
Internet. As our increasingly connected and independent workforce goes online, talent—like
software, shopping and communications before it—is shifting to the cloud. This shift is freeing
professionals from set-time-and-place work, while also making it faster and easier for
businesses to hire. Elance-oDesk is headquartered in Mountain View, California, with offices in
San Francisco, California, and Oslo, Norway.
For more details, go to https://www.freelancersunion.org/53Million

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