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Revenue of specialized self-employed workers exceeds $110 billion in 2017, Fiverr reports

May 09, 2018

Self-employed specialized independent workers in the 15 largest US metropolitan areas generated more than $110 billion in projected 2017 tax year revenue, according to the report, “Understanding the Impact of the Freelance Economy,” released today by online staffing provider Fiverr. This translates to between 1% and 2% of the GDP, on average, of each metropolitan area.

Fiverr partnered with Rockbridge Associates to analyze more than 20 million tax returns from annually compiled nonemployer US Census Bureau statistics. Self-employed specialized workers are defined as anyone who receives a 1099 at the end of the year for work that requires specific skills and abilities, such as lawyers, graphic designers, wedding musicians and engineers.

The New York metropolitan area was the top market for specialized independent professionals with approximately 533,000 specialized independent professionals and estimated total revenue for them in 2017 of $24.4 million. The Los Angeles metropolitan area was second with 400,000 and $18.3 million, followed by Chicago with 185,000 and $6.7 million.

The three smallest markets examined — Minneapolis, San Diego and Seattle — all had between 78,000 and 90,000 specialized independent professionals, a range that appeared constant across metropolitan areas with roughly similar populations.

Fiverr also today announced the formation of the Digital Workforce Development Initiative, a coalition comprising Fiverr, Udemy and Samaschool. The initiative will partner with cities and other local stakeholders — such as nonprofits, economic development engines, and workforce development agencies — to bring education and specialized independent work training to unemployed and underemployed individuals, as well as those looking to transition away from traditional employment to independent work.

“Independent work is growing globally, but with much of the work currently done offline, a few major hubs of economic activity have arisen,” said Brent Messenger, Fiverr’s global head of community. “Whether due to a lack of education, local opportunities, or access to other resources, the current playing field for freelance and independent work isn’t a level one.”

DWDI will offer free in-person workshops, seminars and networking events; a mentoring program pairing top sellers on Fiverr with individuals who are just starting out as freelancers; online educational modules via Samaschool; and online master courses from Udemy instructors in specific skill sets valuable in the freelance, creative and business services economy. It has partnerships so far with Kansas City and Richmond, Calif.