According to data from the latest Freelance Confidence Index, released today by PCG, self-employed people should buck the trend for wage stagnation over the next 12 months as day rates for freelancers are expected to rise.
Georgios Nikolaidis, Economic Policy Adviser at PCG said:
“While pay in traditional employment continues to stagnate, a widening skills shortage in freelancer-rich industries has driven strong demand for independent professionals. Businesses are increasingly utilising highly specialised freelancers to cover for skills unavailable in-house and this trend is expected to continue in the months to come.
“In turn, freelancers allow for further job creation by limiting the risks of expansion and facilitating innovation. As the economy grows freelancers will continue to propel growth by offering businesses operational flexibility and the ability to manage risk.
“We have seen almost half a million more people choose to go into self-employment over the last year and this rate of change is only set to continue as individuals and businesses wake up to the benefits of independent working.”
Key findings from the Freelance Confidence Index:
- Freelancers expect their day rate to rise over the next 12 months, bucking the general trend for wage stagnation in traditional forms of employment.
- The average length of time that freelancers were out of contract over Q2 2014 is just under two and a half weeks.
- Almost a third of freelancers saw an increase in contract availability in the last quarter.
- Freelancers are more optimistic about the economy when looking forward 12 months rather than the next 3 months.
- Freelancers are confident about the outlook of the economy in general and the prospects of their own business.
- Freelance opportunity is concentrated in London and the South East, with roughly half of all work undertaken by freelancers happening in these areas.
Full findings and analysis of the report can be found in the Q2 2014 Freelance Confidence Index at: www.pcg.org.uk/news/2014/freelance-confidence-index-self-employed-look-buck-trend-wage-stagnation