Freelancers’ day rates are set to increase over the coming year, bucking the trend for overall wage stagnation.
This is according to a new survey from freelance group the PCG, which found that respondents expected their rates to rise in the next 12 months.
Meanwhile almost a third of freelancers saw an increase in the number of available contracts over the last quarter, although freelance activity remained concentrated in London and the South East, where around half of all freelance work takes place.
The PCG believes that the increase in freelance day rates is down to a desire amongst businesses to fill skills gaps without the risks of increasing head-count. PCG economic policy advisor Georgios Nikolaidis 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.”