Daily News

View All News

UK – Business confidence returns among freelancers

16 April 2015

Freelancers’ confidence in both business and the economy has been restored in Q1 2015 after dips in the previous quarter, research published by the Association of Independent Professionals and the Self-Employed (IPSE) has revealed. 

The survey of nearly 1,000 UK freelancers consisting of members of IPSE and registered freelancers on Elance-oDesk, the global online work platform, found a net positive outlook on business prospects, which may stem from an increase in the volume of work and day rates. 

The survey results also found increasing confidence in the UK economy, reversing the trend over the last three quarters.  

Suneeta Johal, Head of Research, Education and Training at IPSE, said: “The survey shows a welcome return of business confidence both in freelancers’ businesses and in the economy. This optimism is accompanied by an increase in both net earnings and day rates. Over the last 12 months day rates have risen 5.6%; which, along with an increase in the number of days worked, has contributed greatly to freelancer earnings outperforming that of employees and the increasing business confidence seen in the report.” 

Hayley Conick, UK Country Manager for Elance-oDesk, commented: “Business confidence is clearly on the up. Over 60% of freelancers who have worked for their clients via Elance-oDesk expect their revenues to increase in the next 12 months. With a third of freelancers experiencing a growth in work volume over the last three months, the general outlook is very positive indeed.”  

Key findings from the freelancer confidence index include:

Freelancers continue to outperform the earnings of typical employees by a considerable margin. Freelancers’ average quarterly earnings have reached £30,000, which is roughly 20% more than employees earn in a year.

Day rates have risen by 1% since the last quarter, up from £525 in Q4 2014 to £531 in Q1 2015. The majority of freelancers (56%) expect day rates to stay at current levels, while 27% expect them to increase, and 17% anticipate a fall.

Capacity utilisation of freelancers has reached record levels, with 87% of freelancers under contract at the time of survey.

More freelancers are reporting an increase in the volume of work undertaken over the last three months (38%) than those reporting a fall (20%). This is the highest percentage of freelancers recorded reporting a rise in activity.

To access the full report, click here.