Orlando, Miami, and Tampa have become hotspots for freelancers, leading the nation in population and revenue growth. This information comes from Fiverr’s 7th Annual Freelance Economic Impact Report. The report also highlights significant growth in cities like Las Vegas and Houston while traditional business hubs like San Francisco and New York show little change.
Fiverr’s Freelance Economic Impact Report offers a detailed look at the evolving freelance landscape. The report underscores the growing importance of freelancers in major U.S. cities and the increasing reliance on technology and flexibility in the freelance economy.
Insights from Fiverr’s Report
Fiverr International Ltd. (NYSE: FVRR) partnered with Illuminas to analyze data from various sources, including the U.S. Census Bureau. The study examined the size and revenue of the independent workforce in the top 30 U.S. cities. It also surveyed hundreds of freelancers to understand their work habits, motivations, and future plans.
Micha Kaufman, CEO and Founder of Fiverr, emphasized the report’s importance. “We see freelancers’ enormous impact on businesses every day. This report is tangible proof of that ongoing impact and the enormous potential of the independent workforce for 2024 and beyond,” he said.
Key Findings
Freelancers in major cities earn more than the national average. The average freelancer in these cities makes $48,288 annually, compared to the U.S. average of $43,954. Additionally, 38% of U.S. independent workers increased their rates in 2023. Half of them plan to raise rates again within the next six months.
Freelancers are increasingly using artificial intelligence to enhance productivity. In 2023, 40% of freelancers used AI tools. This usage was higher among technical service providers (47%), males (43%), Gen Z (56%), and Millennials (47%). Those using AI saved an average of 8.1 hours per week.
More freelancers are leaving traditional jobs to focus solely on freelancing. In 2023, 71% of freelancers were full-time, up from 64% in 2022 and 61% in 2021. Fiverr’s data shows that 57% of its U.S. freelancers are now full-time, an increase from the previous year.
The report highlights that women particularly value the flexibility of freelancing. Of the surveyed freelancers, 51% are women. Half of these women chose freelancing to work from home, compared to 41% of men. Additionally, 34% of women freelance to control their schedules, versus 22% of men.
Rapid Growth in Top U.S. Markets
The fastest-growing freelance markets by population include Houston, Orlando, Las Vegas, and Miami. These cities saw the highest predicted growth rates between 2021 and 2023. Meanwhile, Los Angeles, New York, and Nashville have a high concentration of creative professionals with above-average earnings. Boston and Seattle are notable for their educated, tech-oriented freelance workforces.
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