Fiverr’s Third Annual Freelance Economic Impact Report Identifies the Top 30 Cities in U.S. for Skilled Freelancing
May 14 2020 - 8:00AM
Business Wire
Skilled freelancers in these cities are
estimated to have earned over $150 billion in 2019, and despite the
current pandemic, feel confident they will earn more in 2020
Fiverr International Ltd. (NYSE: FVRR), the company that is
changing how the world works together, today revealed the findings
of its annual Freelance Economic Impact Report, a comprehensive
study that identifies and profiles the largest markets in the
United States for skilled freelance workers. The report analyzes
secondary data sources, including the U.S. Census Bureau, to
determine the size and revenues of U.S.-based skilled freelancers.
The Nonemployer Statistics series, based on a review of over 20
million tax returns, reveals there are nearly 6 million skilled
freelancers working in creative, technical or professional
positions in the United States.
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Six in ten (62%) freelancers are more
fearful than hopeful about the future of independent work in light
of the pandemic, but at the same time, six in ten (59%) expect to
make more or about the same revenue in 2020 as they did in 2019.
(Graphic: Business Wire)
“Understanding the growth and impact of this sector of the
workforce has never been more important than it is in this current
environment,” said Micha Kaufman, CEO and Cofounder of Fiverr. “As
the COVID-19 pandemic has forced employers and workers to reexamine
all aspects of the modern workplace and adopt new technologies to
maintain pace from the comfort of home, skilled freelancers are at
the forefront of this adoption curve. My belief is that, coming out
of all this, we’ll begin to see a digital transformation in the
labor market, meaning a shift to more digital, independent
work.”
Looking at skilled freelancers across the United States
An interesting peek at some of the trends impacting skilled
freelancers across the country.
- Freelancers are concerned about the effects of the COVID-19
pandemic, though appear confident about their financial future.
Six in ten (62%) are more fearful than hopeful about the future of
independent work in light of the pandemic, but at the same time,
six in ten (59%) expect to make more or about the same revenue in
2020 as they did in 2019.
- Skilled freelancers are highly satisfied with their
work. Seven in ten freelancers across the U.S. said they were
highly satisfied with their work as compared to just over half of
all U.S. workers. Top benefits of their work include the
flexibility of their work schedule, the ability to work from home
if needed, and the interesting nature of their work.
- Freelancers providing creative services are growing faster
than those providing technical and professional services. While
their population is not as large, the population of freelancers
that provide creative services, such as graphic designers and
videographers, grew by 20%. Their revenues also grew by 25% during
that same time period.
- Freelancers are finding their clients through a variety of
different means. The most common is through word of mouth
(67%), followed by social media (23%), and online marketplaces such
as Fiverr (18%).
- Both men and women are finding success as skilled
freelancers. Skilled freelancers across the U.S. and on
Fiverr’s platform are equally represented by males (47% across the
U.S. and 56% on Fiverr’s platform) and females (52% across the U.S.
and 44% on Fiverr’s platform).
- They recognize the drawbacks that can come along with
freelancing. Top drawbacks among skilled freelancers in the
U.S. include irregular income (72%), lack of access to benefits
like health insurance (61%) and having to provide their own
equipment and tools (35%).
Emerging Hotbeds for Skilled Freelancers Though not
widely considered hubs for economic activity, these cities are
thriving due to increases in skilled freelance activity.
- Nashville and Austin continue to grow faster in both
population and revenue than all other cities. In Nashville and
Austin, the population of skilled freelancers grew by 26% and 27%
respectively from 2012-2017. In terms of revenue, Nashville has
exploded at 37% revenue growth, with Austin behind it at 29%.
- Miami’s skilled freelance workforce contributes the most to
the overall GDP of the city. Skilled freelancers in Miami
contributed 2.3% to the overall GDP of the city, followed by
Austin, Los Angeles, and Nashville. Revenues from skilled
freelancers across the U.S. represent 1.1% of total U.S. GDP.
- Skilled freelancers in Las Vegas, Nashville and Boston all
earn more than freelancers in New York. Freelancers in San
Francisco, San Jose, Las Vegas, Los Angeles, Nashville, D.C. and
Boston all rank above New York on a per person pay basis. For
instance, skilled freelancers in Vegas are earning, on average,
almost $49K annually. Skilled freelancers in New York are averaging
$44.5K annually. However, this type of work is not necessarily full
time for these workers. On average, they spend 25 hours a week at
their work. Forty percent work fewer than 20 hours per week and
just 6 percent work more than 50 hours per week.
- All three cities in Florida (Orlando, Tampa and Miami) are
among the fastest growing cities for skilled freelancing in the
nation. While Nashville and Austin lead the pack, all three
cities in Florida have seen over 20% growth in both revenue and
population. Additionally, all three markets are among the fastest
growing for freelancers providing professional services like
accounting, management consulting, and legal services. This makes
sense given 41% of these workers are older than 65 and we know
Florida has an older population.
- California is also a hotbed for skilled freelancing. Six
out of the top 30 cities for skilled freelancing are located in
California: Los Angeles, San Francisco, San Diego, Riverside, San
Jose and Sacramento. That could change in 2020 and beyond given the
recent passing of Assembly Bill 5 in the state.
- Freelancers providing technical services are more
concentrated on the west coast but are seeing fast growth
throughout the country. San Jose, San Diego, San Francisco,
Seattle and Portland are the top hubs for freelance technical
services, but Miami, Austin and Nashville are all showing
significant growth. Interestingly enough, Baltimore, one of the
cities at the bottom of the list for share of workers, ranks in the
top five for share of revenue.
Major Markets Rely Heavily on Skilled Freelancers The
largest skilled freelance workforces are found in the top three
population centers: New York, Los Angeles and Chicago.
- The New York metropolitan area is the largest market for
skilled freelancers by both total population and total revenue.
In 2019, it is estimated that there were nearly 600,000 of these
workers in the area who brought in $26 billion in revenue. That
said, skilled freelancers in New York tend to be less satisfied
with their jobs - 58% said they were highly satisfied with their
work as compared to 72% of those outside the area.
- Los Angeles is the second largest market for skilled
freelancers, with an estimated 430,000 workers and $20 billion in
earnings in 2019. Los Angeles is the only market behind
Nashville where creative freelancers outnumber technical
freelancers. These workers believe that L.A. is desirable because
of its internet infrastructure, the professional network it offers,
and its general attractiveness when not working. That said, they
also said it was less desirable because of the laws and regulations
that make it difficult - possibly the new Assembly Bill 5?
- Chicago is the third largest market for skilled freelancers
with an estimated 200,000 workers who earned $6.8 billion in
2019. Freelancers in Chicago are significantly more likely to
work with clients who are from the Chicago metro area. Of their
total earnings, on average, 68% of their revenue comes from clients
within the area.
“The study reveals the importance of the skilled freelance
economy in the United States. These professionals offer vital
skills to local businesses and institutions and also bring in
revenue from customers outside their communities, helping to drive
local economies,” according to Charles Colby, Principal at
Rockbridge Associates and the study methodologist. “These skilled
freelancers will adapt well in a world changed by the pandemic
because most of them are able to work from home and offer skills
that are exportable through digital collaboration. Platforms like
Fiverr will make it easier for freelancers in creative, technical
and professional consulting fields to maintain and expand their
businesses.”
The entire Freelance Economic Impact Report can be found at:
www.fiverr.com/freelance-impact.
About Fiverr
Fiverr's mission is to change how the world works together. The
Fiverr platform connects businesses of all sizes with skilled
freelancers offering digital services in more than 300 categories,
across 8 verticals including graphic design, digital marketing,
programming, video and animation. In 2019, over 2.5 million
customers bought a wide range of services from freelancers working
in over 160 countries. We invite you to visit us at fiverr.com,
read our blog and follow us on Facebook, Twitter and Instagram.
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Abby Forman press@fiverr.com
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