Freelance and Contractor Day Rates Remain Stable in 2023 Despite Economic Downturn
Last week, we were delighted to announce the release of our much-anticipated annual Freelancer Rates Report for 2024.
Our comprehensive report based on 98,000+ YunoJuno freelance contracts, provides an extensive review of the current flexible workforce market, with valuable insights into the evolving landscape of freelance work, including changes in day rates and contract lengths across various disciplines and seniorities, from the previous year.
What we saw from 2023
Our report findings from 2023 marked an average year on year increase of approximately +0.1% in day rates for independent contractors, reaching an average of £379 per day.
Across 15 disciplines from within the YunoJuno platform, the average project length stood at 24 working days, translating to just under 5 weeks. This was a -0.8% year on year decrease in contract length.
Notably, significant variations existed among disciplines, with the top-earning fields being Strategy (£497 average per day), Market Research (£488), and Data (£473).
In terms of project lengths, Client Services boasted the longest average, with freelancers being booked for just over 9 weeks (46 working days).
Highest Day Rates from YunoJuno’s 2024 Freelancer Rates Report:
This year's report, reveals that despite the challenging economic conditions in 2023, freelance rates remained stable overall. Average day rates continued to increase in many disciplines, albeit at a slower pace than in previous years. However, certain sectors experienced a drop in rates as freelancers and companies swiftly adapted to the changing business environment.
The report underscores the resilience of freelancers and the flexibility of the freelance market in responding to economic uncertainties, with variations in rates reflecting the diverse impact on different industries and skill sets.
| Old rule (2021 Independent Contractor Rule) | New Rule (Effective March 11, 2024) | |
|---|---|---|
| Basis of classification | Relied on a simpler, more straightforward approach that may not fully capture the complexity of modern work relationships. | Restores a multifactor "economic reality" test that considers a wider range of factors to determine employment status. |
| Legal consistency | Criticised for deviating from established legal precedent and potentially leading to more misclassifications. | Aims to align closely with longstanding legal precedent, offering more clarity and consistency in classification decisions. |
| Impact on workers | Concerns were raised that it might make it easier to classify workers as independent contractors, potentially denying them employment benefits. | Seeks to reduce the risk of misclassification, ensuring workers who should be classified as employees receive the benefits and protections that they're entitled to receive. |
| Guidance for employers | Provide a simpler framework for employers to classify workers, which could lead to broader interpretations and confusion. | Offers detailed guidance through the economic reality test, aiming to provide a clearer path for proper classification and reduce misclassifications. |
Despite the economic downturn, YunoJuno saw a 60% increase in bookings from 2023 which translated to $1.5+ billion in revenue distributed to freelancers using the platform to date.
YunoJuno recognises the immense contribution contractors and freelancers make to companies and projects worldwide and remains committed to supporting the freelance community by providing transparent and up-to-date information on market trends.
The future of work is freelance
It’s been inspiring for us at YunoJuno to see how the freelancers on our platform have used the increased downtime between projects in 2023 to upskill and therefore increase their value to future clients by training themselves in AI and other emerging tools and technologies.
As the demand for their services increases, we expect these highly skilled freelancers to deliver a step change in productivity to the companies who take a strategic approach to their flexible workforce and utilise the power and efficiency of freelancers to gain a competitive advantage.
Explore the report insights today
The Freelancer Rates Report is available to view or download for those interested in gaining deeper insights into the contingent workforce industry.
Alongside the downloadable report, for 2024 we launched a digital portal, to continue to update data for new roles and keep you forever in the know.
