Freelancing in Australia: 2015

© Copyright 2015 Daniel J Edelman Inc.1 Intelligent Engagement

Freelancing in Australia: 2015

Results Deck

October 27, 2015

© Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement 2

• An online survey of 1,000 Australian adults who have done paid work in the past 12 months

• Data collected August 17 – August 23, 2015 by independent research firm Edelman

Berland

• 2014 data referenced in this presentation is from Edelman Berland’s July 19 – July

31, 2014 survey

• Results are weighted to ensure demographic representation in line with the Australian

Bureau of Statistics Labour Force Survey

• Overall margin of error of ±3.1% at the 95% level of confidence

Research methodology


Audiences

NON-FREELANCERS

Definition:

- Individuals who earned income through work but have not engaged in supplemental, temporary, project-or contract-based work, within the past 12 months.

Sample n = 676

FREELANCERS

Definition:

- Individuals who have engaged in supplemental, temporary, project-or contract-based work, within the past 12 months.

Sample n = 324

AUS WORKERS OVERALL

Definition:

- AUS adults 18+ who have earned income from work within the past 12 months, including both freelancers and non-freelancers.

Sample n = 1,000


Upwork commissioned Edelman Berland, an independent research firm, to conduct a study of the

freelance workforce within Australia with the following objectives:

1. Quantify the number of people freelancing in Australia for the second year in a row

2. Assess why people are freelancing

3. Explore the impact of investments in digital infrastructure on the economy

4. Gauge the outlook for freelancing, especially among Millennials as they become the majority of

our workforce

This results deck is organized in sections to detail results on each of these objectives.

Study objectives


1. Quantify the number of people freelancing in Australia for the second year in a row

• The percent of the Australian workforce freelancing increased by 2 percentage points since

2014, from 30% in 2014 to 32% now. Based on the Australian Bureau of Statistics’ August 2015

estimate of the civilian labor force at 12.5 million, that equates to nearly 4.1 million people –

370,000 more people who have done freelance work than last year.

2. Assess why people are freelancing

• Australians are freelancing by choice – 57% said they started more by choice – primarily

driven by flexibility and freedom.

• The majority (51%) of freelancers who left traditional employment now earn more – and 69%

indicated they earned more within a year or less.

• Technology is making it easier to find freelance work (68% of freelancers agree, compared

to 59% in 2014).

• 58% of freelancers say they would not quit freelancing and take a traditional job with an

employer -- no matter how much it paid.

Key findings (by objective)


Key findings (by objective)

3. Explore the impact of investments in digital infrastructure on the economy

• Nearly two-thirds of freelancers (65%) report that investment in Australia’s digital

infrastructure will grow the economy.

• More than 3 in 4 freelancers (77%) believe that increased opportunities for freelancers are

a positive step for the economy… and 62% think we need more open discussion about

freelancing.

4. Gauge the outlook for freelancing

• 72% of freelancers believe the best days are ahead for freelancing.

• Among all freelancers, nearly 3 in 4 (73%) would recommend freelancing to their friends and

family – with Millennials even more favorable at 75%.

• More than 3 in 4 (79%) non-freelancers said they are open to doing additional work

outside their primary jobs to earn more money, if it were available.


Quantifying the Freelance Workforce

© Copyright 2015 Daniel J Edelman Inc.8

• Our survey of over 1,000 Australian workforce members rigorously screened respondents to

determine the percent who earned freelance income in the past year. Results showed that 32% of

the Australian workforce is doing freelance activity – up from 30% in 2014.

• Based on the Australian Bureau of Statistics’ August 2015 estimate of the civilian labor force at

12.5 million, we estimate that the Australian workforce currently includes nearly 4.1 million

people doing freelance work.

• This is an increase of 370,000 freelancers since our 2014 survey.

The percent of the Australian workforce freelancing increased to 32% in 2015. Nearly 4.1M Australians are now freelancing

"THE EMPLOYMENT SITUATION - JULY 2015." Bureau of Labor Statistics - U.S. Department of

Labor, 7 Aug.

2015, http://www.bls.gov/news.release/pdf/empsit.pdf.

http://www.bls.gov/news.release/pdf/empsit.pdf


Starting with the general Australian workforce, each respondent ran through a series of questions that carefully

qualified their employment status and income in order to detect freelancing that might otherwise go unrecorded.

The following definitions and examples explain 5 segments of freelancers captured:

1. Independent Contractors (30% of the independent workforce / 1.2 million professionals) – These “traditional”

freelancers don't have an employer and instead do freelance, temporary, or supplemental work on a project-to-project

basis.

2. Moonlighters (19% / 764 thousand) – Professionals with a primary, traditional job who also moonlight doing freelance

work. For example, a corporate-employed web developer who does projects for non-profits in the evening.

3. Distributed Workers (31% / 1.3 million) – People with multiple sources of income from a mix of traditional employers and

freelance work. For example, someone who works the front desk at a dentist’s office 20 hours a week and fills out the rest

of his income driving for Uber and doing freelance writing.

4. Temporary Workers (16% / 639 thousand) – Individuals with a single employer, client, job, or contract project where their

employment status is temporary. For example, a data entry worker employed by a staffing agency and working on a

three-month assignment.

5. Freelance Business Owners (4% / 163 thousand) – These freelancers have one or more employees and consider

themselves both a freelancer and a business owner. For example, a social marketing guru who hires a team of other

social marketers to build a small agency, but still identifies as a freelancer.

In order to qualify, freelancers had to have earned freelance income within the past 12 months.

How did we quantify freelancers?


4%

16%

19%

30%

31%

639K

Moonlighters

Distributed

Workers

Temporary

Workers

Freelance

Business Owners

Independent

Contractors

S102New: Behind the scenes-Freelancer Specific Classification-Tracking n = 324

163K

764K

1.2M

1.3MGrowth in freelancing since

2014 was most notable in

the Distributed Workers

segment (from 23% of

freelancers in 2014 to 31%

now)

The freelance workforce: 5 freelancer segments


Why People are Freelancing: Going Solo vs. Traditional Employment


The majority of freelancers are starting by choice

Choice57%

Necessity43%

Which is closer to the reason you originally started freelancing?

Q48. Which is closer to the reason you originally started freelancing? n = 324

Q53. What do you think is different about the freelance job market today compared to 3 years ago? More people are

choosing to work independently [Strongly + Somewhat Agree] n = 324

63%of freelancers agree that more

people are choosing to work

independently today

compared to 3 years ago


60%

49%

65%

40%

51%

35%

18-34 35-54 55+

Reason for Freelancing - by Age[Freelancers]

Choice Necessity

The youngest and oldest generations are most likely to start freelancing by choice

Q48. Which is closer to the reason you originally started freelancing? n = 324

* Small base size (n=54). Results should be considered directional only.

*


Flexibility and freedom are key drivers for freelancing

Q35b. Please indicate the degree to which each of the following is a reason why you freelance? (Top 2 Box) n = 94 full-time, n=163 part-

time. Note - small base size for full-time freelancers. Results should be considered directional only.

76% 75% 74% 72%68%

50% 51%

57%

52% 52%

To work from the location of mychoosing

To have independence from thingssuch as office dynamics

To have flexibility in my schedule(i.e. what days or times I work)

To be in control of my own financialfuture

To be able to choose my ownprojects

Top 5 Reasons for Freelancing

Full-time freelancers Part-time freelancers


Schedule flexibility and good work/life balance are top characteristics freelancers associate with freelancing

Q23: In your opinion, how well does freelancing fit each of these characteristics?(Top 2 Box) n = 324

78%

74% 73% 73% 72% 72% 72%

Flexibility to work when Iwant

Good balance (betweenmy work and personal

life)

Opportunities to learnnew things (challenging)

Allows control of my owndestiny

Ability to work oninteresting projects

Flexibility to work where Iwant

Provides the opportunityto pursue work I am

passionate about or findmeaningful

Top Descriptors of Freelancing

Freelancers


Why do Australians freelance? In their own words…

Q35a: Other than to earn money, why do you freelance? [Open End] n = 324

“Freedom, love of doing what I do.”

“To meet different people and to have more freedom and satisfaction.”

“Freedom to work your own hours.”

“Enjoy freedom and have opportunity to do what I like.”

Other than money, why do you freelance? (Open-

ended)

“Passion and love for what I do.”

“I umpire netball as my freelance work. I love netball and enjoy the fitness that umpiring provides.“

“Because I love to design and I want to build up my folio.”

“It employs skills I have in a worthwhile and interesting manner and keeps those skills current.”

“To gain additional skills and more importantly, wider range of experiences.”

“It gives me an opportunity to expand my knowledge and practice skills.”

1. Freedom

2. Pursue passion

3. Build skills

4. Flexibility

5. More Opportunities“For the flexibility to spend time with my kids.”

“To work from home and to have the flexibility to fit work around my life.”

“I recently moved countries and have been unable to find employment. I have skills, so freelancing is the sensible

option to earn an income.”

“I relocated but am still working for clients of previous business.”


Flexibility is a bigger driver for freelancers overall than the type of work

Q35c. Which is a bigger reason why you freelance? n = 324

61%

39%

The flexibility it provides(schedule flexibility, location

flexibility, time with family, etc.)

The work opportunities itprovides (type of projects,

interesting work, ability to workwith multiple clients, etc.)

Which is a bigger reason why you freelance?

Flexibility is especially important to

Gen X (72%) and parents with

children under 18 (66%)


More than a third of freelancers say they have been able to move thanks to the flexibility their career provides

Q50a. Please indicate your agreement with the following statements about freelancing. n = 324

60%of freelancers agree that freelancing

provides the opportunity to work from

anywhere

43%of freelancers agree that in the past, they

have been able to move to a different

location because of the freedom

freelancing gave them


The majority of freelancers who left traditional employment earn more now, with 2 in 3 earning more within the 1st year

Q29b. As a freelancer now, do you earn more or less than when you had an employer? (freelancers who left a traditional job) n =

121

Q29c. After leaving your job with an employer, how long did it take you to earn more as a freelancer than you did with an employer?

(freelancers who earn more after leaving traditional job) n = 61. *Note - small base size. Results should be considered directional

31%

21%

17%

24%

6%

0%

Immediately Less than 6months

6 months –1 year

1- 2 years 3- 5 years 6 years ormore

After leaving your job with an employer, how long did it take you to earn more as a freelancer than you did with an

employer?[Freelancers who earn more now than with employer]*

69%

L…

Sa…

More51%

As a freelancer now, do you earn more or less than when you had an employer?


More than half of freelancers say they wouldn’t stop freelancing, no matter how much money they were offered

Q29a: In the past, did you quit or leave a job with an employer in order to freelance? n=324

Q50e. How much more would a traditional job with an employer need to pay in order for you to definitely take

that traditional job and stop freelancing? n = 324

20%

1%

5%

7%

6%

4%

58%

How much more would a traditional job with an employer need to pay in order for you to definitely take that traditional job and stop freelancing?

$50,000-

$99,999

$100K+

*Due to rounding, may add to over 100%

There is no amount

of money where I

would definitely

take a traditional

job.>$5,000

$5,000- $9,999

$10,000-

$19,999

$20,000-

$49,000

37% of freelancers

have quit a job with an

employer in order to freelance

<$5,000


Q60. Have you ever obtained a freelance project online? n = 324

Q61. How long on average does it take you to find freelance projects that you look for online? (i.e. between looking for an opportunity and starting work of it) n = 132

An increasing number of freelancers are obtaining work online

13%

32%

28%

15%

5%

8%

Less than24 hours

1-3 days 4-6 days 1-2 weeks 3-4 weeks More than amonth

How long on average does it take you to find freelance projects that you look for online?

[Freelancers who have obtained a freelance project online]

No59%

Yes41%

Have you ever obtained a freelance project online?

45% find projects

in 3 days or less

In 2014, 30%

of freelancers

had done a

freelance

project online


Technology is making it easier to find freelance work

Q53_5. What do you think is different about the freelance job market today compared to 3 years ago? Please indicate your level of

agreement with the following statements: Technology has made it easier to find freelance work. n = 324

68

%Agree that technology has made

it easier to find freelance work

compared to 59% in 2014


Freelancers and the Economy


Freelancers believe more investment in digital infrastructure will help the Australian economy grow

Q87. Please indicate your agreement with the following statements. n = 324

7% 7%

29% 28%

63% 65%

Australia’s government should invest more resources in the country’s digital infrastructure

(e.g. NBN)

Investment in digital infrastructure will help Australia’s economy grow

Agreement with Economic Statements

Agree

Neither agreenor disagree

Disagree


Freelancing is also seen as key to improving our economy

Q78. Which is closer to your view of the impact freelancers have on our economy? n = 324

77%of freelancers believe that increased

opportunities for freelancers are a

positive step for our economy


… and nearly two-thirds of freelancers think we need more open discussion about freelancing

Q77. Which is closer to your view of the discussion in our country around freelancers? n = 324

62%

38%

Which is closer to your view around the discussion in our country around freelancers?

[Freelancers]

We need

MORE OPEN

DISCUSSION of how to empower the

freelance segment of our

workforce

We already

talk about

freelancers

enough


Freelancers come from a variety of political parties

Q86: Which political party do you align yourself with? n = 324

28%

23%

19%

10%

5%

15%

AustralianLabor Party

Liberal Partyof Australia

The AustralianGreens

Independents The Nationals Other

Which political party do you align yourself with?[Freelancers]


Half of freelancers are more likely to vote for a candidate that supports their interests

Q74: If a candidate for political office supported your interests as a freelancer, how would that impact your vote? n = 324

50%

40%

10%

If a candidate for political office supported your interests as a freelancer, how likely would that be to impact your vote for that candidate?

More Likely It would make no difference Less Likely

Millennials (57%) are more likely to

vote for a candidate who supports

freelancers’ interests than Non-

Millennials (44%)


The Outlook for Freelancing


Freelancers are optimistic about the future: the majority think freelancing’s best days are yet to come

Q57. How do you see the future of freelancing in general? (2015) n = 324

72% of freelancers

believe the best days are

ahead for freelancing


Q57. How do you see the future of freelancing in general? n = 324

Q41. How likely are you to recommend freelancing to your family or friends? n = 324

Best days are …

How do you see the future of freelancing in general?

Best days are behind

31%

Millennials are most optimistic about the future of the freelance job market

Not Likely25%

How likely are you to recommend freelancing to your friends or family?

Not Likely29%

Millennials Millennials

Adults 35+ Adults 35+

81%Best days

are ahead

75%

Best days

are ahead

69%

75% likely

71% likely

72% of all

freelancers see

best days

ahead

73% of all

freelancers

likely to

recommend it


More freelancers are seeing an increased demand for their services this year compared to 2014

Q44. In the past year, have you seen the demand for your freelance services (increase, decrease, stay the same). n = 324

29%

50%

21%

In the past year, have you seen the demand for your freelance services change?

Increased Demand No Change Decreased Demand

+5% since 2014


More than a third of all freelancers expect their income from freelancing to increase in the coming year

Q42. In the coming year, do you expect your income from freelancing to (increase, decrease, stay the same). n = 324

42%

47%

11%

Increase Stay the same Decrease

In the coming year, how do you expect your income from freelancing to change?

+9% since 2014


Freelancing gives Australians extra confidence going into retirement

Q84: How confident are you that you will be able to maintain your current standard of living after you retire? n = 1000

11% 9%

17%31%

47%

50%

25%

10%

Freelancers Non-Freelancers

How confident are you that you will be able to maintainyour current standard of living after retirement?

Very confident

Somewhat confident

Not very confident

Not confident at all

72%60%


9 in 10 freelancers would consider freelancing after they retire to earn additional income

Q85: Would you consider freelancing after you retire to earn additional income? n = 324

Would you consider freelancing after you retire?

89% Yes


Two in five moonlighters have considered quitting their primary employment and going solo

Q11: Do you have an employer (i.e. a company that employs you)? n = 1,000

Q12: Do you have more than one employer, job, or contract project? n = 774

Q13: Do you do any work outside of your primary position to supplement your income or earn additional money? n=611

Q37. Have you ever considered quitting your primary job in order to work completely independently? (Moonlighters) n = 61. *Small base size.. Results should be considered directional only.

Yes40%

No60%

Have you considered quitting your job in order to work completely independently?

[Moonlighters]*

764K

MoonlightersWorkers with a primary employer

who have done work outside of

their main job to earn additional

money within the past year

If these Moonlighters

quit their jobs, that

would be nearly

306KNew Independent

Contractors


Most non-freelancers are open to freelancing

Yes79%

No21%

Would you be willing to do additional work outside of your primary job if it was available and enabled you to make more money?

[Non-Freelancers]

Q21. Would you be willing to do additional work outside your primary job(s) if it was available and

enabled you to make more money? N = 676


Who Freelancers Are


Men tend to freelance more than women

Q1: What gender do you more closely identify with? n = 1,000

59%

41%

54%

46%

Male Female

What gender do you more closely identify with?

Freelancers AUS Workers Overall

Note: “AUS Workers Overall” includes all AUS adults who have earned income

from work within the past year, including freelancers and non-freelancers


Freelancers tend to be young, with nearly half under the age of 35 – but almost 20% are 55+

Q2: What is your current age? n = 1,000

47%

36%

17%

37%

45%

18%

Under 35 35-54 55+

What is your current age?





42%

26% 30%

58%

74% 70%

18-34 35-54 55+

Freelance Participation by Age

Freelancers Non-Freelancers

More millennials freelance than any other age group

Q2. What is your current age? n = 1,000


Almost half of freelancers cite caregiving as a reason they freelance

Q35b: Please indicate the degree to which each of the following is a reason why you freelance? n = 324

43

%of freelancers say they

freelance to have a

schedule that allows

them to provide care for a

family member

“It fits in my lifestyle around the kids and family life.”

“Caring duties for kids and disabled wife so can't take regular work with

decent pay.”

“Work/life balance I can work when I want, where I want which is easier

with kids.”

“Can spend more time with kids and freelance at convenience.”


Freelancers are more educated than the average worker

Q68: What is the highest level of school you have completed or the highest degree

you have received? n = 1,000

28%

20%

16%

36%35%

24%

11%

30%

Secondary school or less Vocational/technical school Some university/higher education University degree+

What is the highest level of school you have completed?


Note: “AUS Workers Overall” includes all AUS adults who have earned

income from work within the past year, including freelancers and non-

freelancers


Freelancers live all over the country

Q70. What state do you live in? n=1,000

33%

22%

18%

13%

7%

3% 2% 2%

32%

25%

20%

12%

7%

2% 1% 2%

New South Wales Victoria Queensland Western Australia South Australia Australian CapitalTerritory

Northern Territory Tasmania

What region do you live in?





But are more likely to live in urban areas than suburban or rural areas

Q71. What type of area do you currently live in? n=1,000

35%

56%

9%

26%

62%

12%

Urban Suburban Rural

What type of area do you currently live in?





Appendix


• AUS Workers Overall: AUS adults 18+ who have earned income from work within the past 12 months,

including both freelancers and non-freelancers.

• Freelancers: Individuals who have engaged in supplemental, temporary, project- or contract-based work,

within the past 12 months.

• Full-Time Freelancers: Individuals that describe their current freelance work status as “full-time freelancer.”

• Part-Time Freelancers: Individuals that describe their current freelance work status as “part-time freelancer.”

• Non-Freelancers: Individuals who earned income through work but have not engaged in supplemental,

temporary, project- or contract-based work, within the past 12 months.

• Non-Freelancers Employed Full-time: Individuals that describe their current work status as “employed full-

time” and do not do any additional work outside of their primary job to supplement their income.

Glossary


Upwork

Upwork is the world’s largest freelance talent marketplace. More than 4 million businesses and 10 million

independent professionals tap into www.upwork.com to work together via the Internet. As our increasingly

connected and independent workforce goes online, talent—like software, shopping and communications before

it—is shifting to the cloud. This innovation is freeing professionals from set time and place work, while also

making it faster and easier for businesses to hire. Upwork is headquartered in Mountain View, California, with

offices in San Francisco, California and Oslo, Norway.

This study commissioned by:

http://www.upwork.com

http://www.upwork.com

Freelancing in Australia: 2015

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