A Challenging 2023 For UK Freelancers, But 2024 Optimism Rising

The UK is among the most developed and mature markets for the freelance revolution. According to IPSE, the trade association for independent professionals, there are 4 million UK freelancers in a wide range of professions. Early marketplaces like Talmix, YunoJuno, Freelancerclub.net, and People Per Hour were freelance pioneers both in the UK and internationally. A recent IPSE survey pointed out, “Solo self-employed sector contributes an impressive, estimated figure of £278 billion to the UK economy per year. Moreover, highly skilled freelancers are estimated to provide approximately £126 billion of the £278 billion that solo self-employed workers generate – accounting for 45% of the overall contribution.” The UK supports freelancing in all three core verticals: tech, marketing services, and independent management consulting.

For help in organizing this survey, thanks to Code Monk, an up-and-coming UK-based tech freelance marketplace that provides both individual tech experts and project teams to SMB and Enterprise clients.

The question asked of UK-based CEOs, thought leaders, and government officials:

How do you see the UK freelance revolution progressing in 2024? What’s your forecast for growth and your expectations about your client mix: enterprise, SMB, startup?

Rich Wilson, CEO Gigged.ai. “At Gigged.ai we’ve pivoted our growth strategy towards large enterprises as 77% of our revenue is now enterprise-based vs SMB’s. We’ve also seen a huge rise in hiring for data engineering and AI engineers which will increase in 2024. We’ve also launched a SaaS platform for talent management as more companies look for platforms to provide more than just freelance talent.”

Karl Swanepoel, CEO Revolancer.com. “In 2023, the UK counts over 4 million freelancers, which will rise in 2024 due to the shift away from traditional jobs and current economic challenges. AI advancements enable freelancers to enhance productivity, complementing their skills. We expect an increase in longer-term, team projects as businesses seek cost efficiencies.”

Nigel Sarbutts, CEO The PR Cavalry. “It’s been tough. My predictions for 2024 are modest but a change of UK Government may provide stability after years of economic and regulatory turmoil. Our focus will remain smaller, established, businesses where PR service buyers need expertise but don’t know where to buy the best. We will stay niche and expert. In turbulent times, it’s best to be damn good and stay focused.”

Joseph Black, CEO Unitaskr.com. “In 2024, freelancing in the UK will witness growth, driven by the need for flexible talent across sectors. We expect an upsurge in enterprise and SMB clients seeking specialized expertise for short-term projects and longer-term collaborations. Demands for expertise in content creation, digital marketing and AI will reshape the freelance ecosystem in the UK.”

Maulik Sailor, CEO CodeMonk.ai. “UK policy changes and uncertainties are creating challenges for companies planning a stable talent strategy. This will impact the freelance market, especially tech, in the short run. Enterprises may tend to hire permanents rather than freelancers given the high cost of non-compliance. However, scale-ups and SMEs continue to rely on freelancers. AI related growth is noteworthy. As the macro-economic outlook improves, companies will initiate new projects, leading to increased demand.”

John W. Healy, CEO Whrrr.work. “I anticipate short term policy challenges for UK freelancing. Advocates of traditional employment are well organized and actively engaged with the government, while the freelance community is not. As a result, regulations like IR35 continue to create friction as opposed to driving freelance growth and adoption. Long term, we’ll see continuing enterprise interest in independent professionals because it offers companies a way to find and engage critical skills.”

Matt Dowling, CEO Freelancer Club.“UK freelancing s poised for growth in 2024, particularly younger professionals. I see an uptick in enterprise collaborations as freelancers leverage specialised skills. Startups and SMBs will increasingly tap into freelance talent for flexibility. We’ll see longer- term partnerships. Expertise in digital marketing, tech development, and creative fields will remain sought-after, as will expertise in AI and Machine Learning. The evolution towards project-based work will redefine how businesses engage with freelancers.

Kelvin Wetherill, CEO Supportwave.com. “In 2024, the IT sector will be forefront in the freelance revolution, in the UK, but across EU and US. We expect significant growth as companies of all sizes rely on freelancers for cutting-edge expertise in areas like cybersecurity, AI, and cloud computing. The trend towards longer-term and collaborative team projects is especially pronounced in IT, reflecting a global shift towards agile, specialized talent.”

Sandeep Dhillon, CEO Talmix.com. “Policy uncertainty and a weak economy have been discouraging headwinds for the short term. At Talmix we find more experienced leaders choosing fractional careers. More generally, our core markets – Europe, APAC, US, and Middle East – see the value of freelancers to bolster their competencies. Our clients now also look to us for AI leadership in transforming their businesses.”

Rae Hames, CEO Teamera.co. “As a recent expat from the Bay Area, I notice companies of all sizes hire freelancers at a rapid clip, but UK companies seem less open to remote roles – which conflicts with freelancers’ expectations of flexibility in work schedule and location, and overall work/life balance.”

Albert Azis Clauson, CEO Underpinned.com. “We see consolidation in the freelance space and also some effort to blur the lines between full-time employment, freelance, and agency-provided value. This is the beginning of a movement away from the dichotomous camps of perm and non-perm and a greater focus on more varieties of workstyle. 2024 will possibly see the start of truly hybridized work as infrastructure starts to catchup with workstyles in bigger enterprises.”

Alex Hirst, Joint-CEO Hoxby.com. “We expect more freelancers as economic stability returns and the benefit of autonomous work outweighs the security of traditional employment. We expect a return to growth but unsure of how large. We certainly continue to see high demand for specialist skills that employers rarely keep in-house but which make agencies like Hoxby such valuable partners.”

Iman Faradei, CEO Talentpools.io. “The economy will pick up in 2024, and freelancers can expect to gain a little back from a tough 2023 that saw a cost-of-living crisis and ongoing impacts from IR35. Most businesses are now willing to hiring remote freelance talent. This means more opportunity within or outside the UK, and more work from international clients. We also see more firms beginning to use talent tech to level up their workforce, creating blended teams of employees, contractors and managed staff for flexibility and affordability.”

Runar Reistrup, CEO YunoJuno.com “Despite the UK economy flatlining, freelancer demand on YunoJuno hit new records into 2024. Many companies that laid off permanent staff are now ramping up their flexible freelance workforce. The big layoffs of 2023 accelerated the shift towards a more flexible freelance workforce. We forecast 80% growth in projects, mainly led by large and enterprise clients as they increasingly join the freelance revolution. We see a notable increase in demand for senior roles as freelance specialists in fractional roles become more commonplace.”

Ben Legg, CEO Portfolio-Collective.com “Portfolio Collective tripled in size in 2023 and will likely triple again in 2024. This is driven by seasoned professionals opting out of the corporate treadmill and launching portfolio careers. We see big demand for fractional C-level leaders, particularly at mid-sized companies. These companies now attract world-class talent that they could never afford full-time.”

David Alberts, CEO BeenThereDoneThat.co. “The corporate leader has shifted from GM to Coach. With the complexity businesses face today the Coach has two roles: First, inspire and nurture the internal team and create a problem-solving culture, and second, build an on-demand bench of experts to call in when and where required like our’s. It is no longer a discussion about the future of work. This is about how companies need to work if they want a future.

Charlotte Gregson, CEO Malt UK. “Cost-cutting initiatives and pricing remain top of the agenda for many businesses. The flexible workforce brings specific skills and capacity to expedite critical projects or cover interim roles without the cost of full-time hires. Malt has seen double-digit growth this year, which shows trust and commitment from our community. In times of instability, people choose trusted relationships. We expect this growth to continue into 2024, especially with longer-term projects in the IT/digital/tech space.”

And the final word goes to Hon. Liz Barclay, Small Business Commissioner for the UK:

“Freelancers in whichever sector are talented, creative, innovative people who are vital to the business ecosystem. They bring fresh thinking, spread ideas, and share best practices. They’re ahead of the game. They have to be to keep winning work, so they’re constantly updating skills and gaining experience. You lose them at your peril. Pay them fairly and quickly or your competitors will gain from their talents rather than you.”

Viva la revolution!