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The labour market is going through a major shift that could be considered another revolution. We are seeing a shift from traditional “stable jobs” to an emerging freelance or gig economy, which consists of temporary, contract work, possibly with multiple employers.
Competitive businesses today are fast, flexible and most importantly - agile.
Organizations value this type of labour force as it allows them to have a scalable, agile workforce that they can scale up, or down, as they need. They can also fill specialized roles with specialized skill sets allowing for reduced employee expense with increased corporate performance.. This is a global shift, and the Canadian economy is on the slower end of it. We are seeing this trend emerge, not only in large corporations but with small business as well.
The key findings in all of the studies show similar trends and concerns when it comes to this emerging economy. Some of the key takeaways that this paper will focus on are
- It is estimated that 35% of Canadians freelance in some capacity , whether that is full-time or moonlighting (freelancing while working a “regular” job)
- The percentage of people freelancing full-time is steadily increasing year over year, most notable increase is 17% in 2014 to 28% in 2019
- The most common type of freelance work is skilled services, such as programming, marketing, and consulting, which clears up the myth that most of the increase is due to the platform economy such as Uber, Skip the Dishes etc.
- The main reasons people start freelancing are freedom, flexibility, and to be their own boss. 60% started freelancing by choice rather than out of necessity.
- Younger generations (Gen Z and Millenials) are more likely to freelance, but there is an emerging trend of baby boomers freelancing after retiring from traditional jobs
- 51% of freelancers say there is no amount of money that would pull them back into working full-time for someone else
- 59% of non-freelancers say it is likely they will do freelance work in the future
It's great that the workforce is adapting to the needs of today’s economy, but with that, other things need to adapt. Freelancers are typically left without big company health and wealth benefits and left to fend on their own when it comes to financial security.
As we evolve as a workforce, how might we help the benefits that come with full-time employment evolve to meets the needs of freelancers and help them achieve financial security?