The Freelance Economy
I was on the phone last night with Stephen DeWitt, the CEO of our portfolio company Work Market. He was talking about a specific community of people and I asked him how many of them were likely to be freelancers. He said “well the statistics say that 3 to 4 out of every ten people these days are freelancers.”
I thought that sounded high but after reading Mary Meeker’s Internet Trends Report, in which she says that “34 percent of the work force in the United States, 53 million people, now consider themselves independent contractors, short-term hires or other kinds of freelancers”, I think Stephen has it exactly right.
Look around you on the subway, the baseball park, the movie theater, 3 to 4 out of every ten people are freelancers. That’s a big number. And its growing pretty rapidly. Younger people are more inclined to be freelancers. Older people turn to freelancing for flexibility or economic necessity. And employers are more inclined to hire freelancers as technology makes the management and compliance requirements around freelancers easier to handle.
The biggest section of Mary’s report, some twenty or thirty slides if I recall, was on freelancers and the “on demand” economy. Technology, the Internet, mobile devices, and the communications and financial systems that have been built across all of these technologies is making freelance work easier and easier to issue and easier and easier to do.
When I got home last night for dinner, my son and his friend were checking out jobs on care.com. When I was their age, finding work was a manual process. Now you just pull out your phone, scan your feed, and get some work.
It’s a new era we are living in and the nature of work is changing and changing fast. There are tons of opportunities in and around this trend and we are invested in some of them. It’s one of the big megatrends of this century.