More U.S. workers turn to freelancing

More than a third of the U.S. workforce did at least some work on the side this year as the COVID-19 pandemic decimated jobs and wages.

That translates to 59 million people, or 2 million more than last year, according to the Freelance Forward report released this week by Upwork, a company that helps businesses find labor.

“There is this really long tail of people who participate a couple of times a month and even beyond that, a couple times a year,” Upwork economist Adam Ozimek said.

The study found that freelancers contributed $1.2 trillion to the U.S. economy this year in annual earnings — a 22 percent increase over 2019. Upwork CEO Hayden Brown said the move toward more remote work likely will accelerate the trend.

More than a third of new independent contractors started after the onset of COVID-19, Upwork found. And over half of 18- to 22-yearolds did some contract work in the past year, according to the report, which said virtually all recent freelancers plan to continue doing some projects on the side.

The Upwork data is bolstered by Census Bureau statistics on business formation that show a jump in selfemployment.

Upwork’s survey also is supported by recent valuations of companies with business models tied to freelance work. For instance, website Etsy — an online marketplace for mostly handmade goods — has more than doubled in value this year to surpass a market capitalization of $13 billion.

Three years ago, the U.S. Bureau of Labor Statistics, using a narrower definition of “contingent worker,” found that only 5.9 million Americans, or just under 4 percent of the workforce, fell into that category.