Freelancers in the UK cut their day rates by an average of £90 last quarter amid a cooling job market, according to a report by IPSE, a trade body for the self-employed.

Its Freelancer Confidence Index found the freelance day rate in the UK was £457 in the second quarter, down from £547 in the first quarter.

“We usually see a seasonal drop in day rates in the second quarter of each year, but this year’s data shows that freelancers have cut their rates more aggressively than usual,” IPSE Policy Director Andy Chamberlain said in a press release.

“We expect this is down to the wider cooling of the jobs market, as hirers cut back on recruitment plans in the face of higher interest rates,” Chamberlain said. “Freelancers are responding to this by slashing their day rates in the hopes of remaining attractive to hirers with tighter budgets.”

The report also found that freelancers are likely to be working less compared with last quarter and they are experiencing falling confidence in their own businesses. The index’s measure of confidence fell to -18.6 in the second quarter from -13.2 in the first quarter.

Freelancers in the report cited the state of the UK economy and government tax policy toward freelancing as the most detrimental factors impacting their business performance. A third factor was government regulation relating the hiring of freelancers.