Is Gen Z a generation of freelancers? Three in four want more than one source of income

Nearly three in four young people say they need more than one source of income in order to achieve financial security, data claims.

Some 70 per cent of Generation Z, the youngest adult generation, said multiple income streams are ‘essential’ for a comfortable living situation, according to data from freelance marketplace Fiverr.

Half of these young people, 47 per cent, said their biggest career fear is not being able to have a comfortable and financially secure life, while a quarter are also worried their salary won’t keep pace with inflation.

These figures come as graduates are increasingly becoming the worst hit by a cooling jobs market as companies freeze new hiring amid financial pressure.

Advertised job vacancies fell eight per cent to 14,162 in August, compared with July, and a third lower than August last year.

Fiverr says more than half of these young people, 57 per cent, said that they think traditional forms of employment, such as a 9-5 job, will eventually become obsolete.

As a result of these beliefs, many of these young workers are choosing to structure their careers around prioritising financial security.

Already, Fiverr’s data suggests 47 per cent of these young people are freelancing, or plan to do so once they enter the career market. 

Almost three quarters of these started their freelancing before they reached 21, with an average starting age of 19.

To do this, those choosing freelance-based careers say they intend to ‘follow the money’, ‘build a diverse portfolio of clients and skills’ and ‘strategically switch roles’.

According to the ONS, there are currently just over four million freelance and self-employed people in the UK.

A majority of these workers, 51 per cent, are gaining a second income stream through side hustles, most likely alongside full-time work.

Fiverr surveyed 3,000 Gen Z and Gen Alphas across the UK.

While freelance careers offer the opportunity to manage your own time and money, they can also lead to risks such as fluctuating income and a lack of pension saving, if not planned correctly.

Michelle Baltrusitis, associate director of community and social impact at Fiverr, said: ‘Young people are entering one of the most challenging UK labour markets in decades, with inflation, job insecurity and AI disruption reshaping career choices.

‘They are rewriting the rules of work, as the single-salary model loses relevance. For many, freelancing offers a way to take control: building multiple income streams, gaining new skills and creating the flexibility that the traditional 9-5 often can’t provide.’

Interestingly, this focus on financial security also appears to have muted desires for working from home opportunities, with just 16 per cent of Gen Z workers saying working from home policies matter to them, falling even further than last years 22 per cent and 24 per cent in 2023.

In comparison, Gen Z now say they prioritise flexibility when it comes to working hours, as well as competitive pay and company benefits.