Freelance economy

The "freelance economy" refers to the set of business, financial, and technical platforms and infrastructure which facilitates activity in a labor market consisting of independent, self-employed workers. The term also applies to the labor market itself.

According to a study commissioned in 2019 by Upwork—one of the largest U.S.-based freelancing platforms—freelance work accounted for approximately 5 percent of the U.S. gross domestic product (GDP).In the U.K., roughly 14 percent of workers are self-employed, according to a 2018 study by the Association of Independent Professionals and the Self Employed (IPSE). Highly-skilled freelancers make more per hour than 70 percent of U.S. workers, and 51 percent of skilled freelancers say no amount of money would compel them to return to traditional employment, according to the Upwork report.

Companies in the freelance economy span many sectors, ranging from job listing services and fully-integrated labor marketplace platforms to financial tools built for bookkeeping, invoicing, and tax preparation.

Freelance platforms serve as marketplaces for freelancers to find work and, conversely, are a source of freelance labor for companies and individuals. Some platforms are oriented around specific types of work, such as writing or software engineering, whereas other platforms are more generalized and cater to many types of workers.