Written by Peter Harrison


Every day freelancers make an enormous contribution to businesses across the United Kingdom (UK) and the economy as a whole. These highly skilled, independent professionals are the fasting growing segment of the self-employed labour force, collectively contributing an economic output that is comparable to the entire motor sales industry. Large firms and increasingly small and medium-sized enterprises (SMEs) are tapping into this growing pool of independent workers who are available on demand, with the specialist skills to hit the ground running – adding considerable value to the organisation and enabling them to respond to fluctuating economic conditions. At the same time, individuals are determinedly seeking to build a portfolio of skills and experience by working flexibly.

Research shows that the vast majority of freelancers love what they do and make an active choice to work independently1, so it’s no surprise that increasing numbers of people are turning to this way of working. The continued expansion of the freelance workforce is evident across a range of industries, and growth has continued unabated during both the global financial crisis of 2008-9 and the subsequent economic upturn. There are few signs of the growth in freelancing slowing down anytime soon. Though despite this, freelancers continue to be a hidden and, at times, misunderstood part of the small business population.

 

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Freelancers’ contribution to the UK economy soared to £119 billion in 2016, an increase from £109 billion in 2015, according to new research published by IPSE, the Association of Independent Professionals and the Self-Employed.

This economic contribution is driven by a highly skilled, flexible workforce of two million freelancers – a 43 per cent increase since 2008.

Freelancers, who make up 42 per cent of the wider 4.8 million self-employed population, continue to be the fastest-growing segment of self-employment with a collective economic output comparable to that of the entire motor sales industry.