Technology has made it simpler for people to increase their income with profitable side hustles.
While freelancers of all ages in the United States receive the biggest benefits, young freelancers in Asia are swiftly following suit.
According to a new report from digital payments platform Payoneer, the world’s fastest-growing freelancing markets and how they’re transforming the nature of work are being highlighted.
According to the Global Gig-Economy Index issued Tuesday, America’s gig economy grew the most in 2019, with freelancer earnings rising 78 percent yearly.
The report is based on data from Payoneer’s network of over 300,000 freelancers.
The United Kingdom and Brazil, which both experienced a 59 percent and 48 percent increase in gig worker wages over the last year, came in second and third, respectively.
On the other hand, Asia saw the biggest regional gain, with incomes rising by 138 percent across four countries.
In the previous year, Pakistan experienced the highest growth rate of 47% in the revenue earned by freelancers.
The Philippines, India, and Bangladesh reached the top 10.
Based on the year-over-year revenue increase, below is the list of the top ten countries with the highest number of freelancers in 2023.
Countries With Highest Number of Freelancers in 2023:
- United States – 78%
- United Kingdom – 59%
- Brazil – 48%
- Pakistan – 47%
- Ukraine – 36%
- Philippines – 35%
- India – 29%
- Bangladesh – 27%
- Russia – 20%
- Serbia – 19%
#1. US – United States (78%)
Over the past year, the earnings of freelancers in the United States have increased significantly. In 2023, the increase was 78%, a significant improvement compared to the 10% increase in 2018. This trend has positioned the United States as the leading country in the world for freelance earnings.
The gig economy in the United States has been attracting professionals of all ages. Still, it mainly benefits younger generations who are more familiar with technology and have experience with non-traditional employment structures.
The COVID-19 pandemic has not affected the growth of the gig economy. In fact, according to a recent study of over 6,000 US employees over 18, freelancers contributed $1.2 trillion to the US economy in annual revenues, representing a 22% increase from 2019.
It is evident that the gig economy is a critical contributor to the US economy, and its growth is expected to continue. As companies become more flexible and workers seek greater control over their schedules, freelancing will continue to thrive.
Furthermore, the increasing number of platforms that connect freelancers with businesses and the growing number of professionals who prefer to work independently rather than as traditional employees contribute to the gig economy’s continued growth.
#2. UK – United Kingdom (59%)
The United Kingdom has made significant progress in the freelancing industry, rising to second place on the list of top freelancing countries in the world. In 2023, the country experienced a remarkable 59% increase in revenue year-over-year, indicating a thriving market for independent workers.
The number of freelancers in the UK has also been growing rapidly, with a 31% increase in the past year. Although traditional fields such as consultancy services and information technology continue to flourish, there has been a noticeable shift towards freelance work in the lifestyle and creativity sectors.
For example, freelance photographers saw a 24% increase, and the number of freelance beauticians grew by a staggering 159%.
This trend reflects the changing nature of work in the UK, as more people seek to work independently and take advantage of the flexibility and autonomy that comes with being a freelancer.
With the growth of online platforms and increasing demand for freelance services, the future looks bright for the UK’s freelancing industry.
#3. BR – Brazil (48%)
Brazil has emerged as a key player in the global freelancing industry, securing its position as the third-largest side-gig economy in the world. In 2019, the country’s freelancer earnings experienced a remarkable 48% growth, propelling Brazil to the top freelancing countries ranking for the first time.
However, despite the significant growth in the Brazilian gig economy, many local companies have been slow to embrace remote work, leaving a significant number of freelancers to work for foreign businesses.
This has opened up opportunities for international companies to tap into the Brazilian talent pool, taking advantage of their lower costs than those in the US and Europe.
Despite these challenges, Brazil’s freelancing industry continues to thrive, attracting a diverse range of independent professionals across a broad spectrum of industries.
As more businesses shift towards remote work models, the Brazilian gig economy is poised to continue growing, attracting even more global clients in the years to come.
#4. PK – Pakistan (47%)
In recent years, Asia has emerged as a surprising leader in the global freelancing industry, with several countries experiencing significant growth rates.
Four Asian countries, in particular, saw earnings increase by an impressive 138%, signaling a thriving market for independent workers in the region.
Pakistan led the charge, which experienced a 47% increase in freelancer earnings in the previous year, making it the fastest-growing freelancing country in Asia.
The number of Pakistani freelancers has also risen rapidly in recent years, from just 4% in 2018 to an impressive 48% in 2021-2023, solidifying Pakistan’s position as the fourth most popular freelancing country in the world.
A younger generation in Pakistan is driving this growth, seeking out new opportunities and embracing the benefits of remote work. This trend is supported by the success of e-employment freelancing projects in Pakistan, with over 12,000 young people earning a staggering $6,87,324.12 (approximately 14 crores PKR) through e-jobs nationwide. These initiatives not only help boost the economy but also provide critical support in reducing unemployment levels.
With its rapidly growing freelancer community and a solid commitment to developing its e-employment industry, Pakistan is set to become an even more significant player in the global freelancing market in the coming years.
#5. UA – Ukraine (36%)
Ukraine has established itself as a leading player in the global freelancing market, with a 36% increase in freelancer earnings in the previous year. The country’s high number of I.T. university graduates has significantly influenced this growth, with young freelancers leveraging their expertise in I.T. services to earn higher incomes.
The Ukrainian government has also played a role in fostering the country’s freelancer-friendly environment. A particular taxing system has been created that exempts I.T. outsourcers and product enterprises from paying value-added tax. Additionally, these companies can hire subcontractors who are not subject to labor taxes as freelancers while benefiting from relaxed foreign currency laws.
This supportive environment has made Ukraine attractive for foreign companies seeking skilled freelancers. Ukrainians have a proven track record of successfully navigating foreign markets and are in the same time zone as the rest of Europe, making it easy for European companies to engage with Ukrainian freelancers.
All these factors have combined to make Ukraine the fifth most popular freelancing country in the world, and it is poised to continue growing in the years to come.
#6. PH – Philippines (35%)
The Philippines has established itself as a significant player in the global freelancing industry due to the cost-effective services offered by its freelancers. It has consistently ranked among the top ten freelancing nations in recent years.
In an effort to further boost its digital workforce, the Philippines government has launched the Rural Impact Sourcing Technical Training Project. The program is aimed at providing ICT-based skills training to indigenous people, empowering them to succeed as digital workers and entrepreneurs.
This initiative is expected to help bridge the digital skills gap in the country and create more opportunities for Filipinos to participate in the global freelancing market. With a large pool of talented and affordable freelancers, the Philippines is well-positioned to continue its growth trajectory in the years ahead.
#7. IN – India (29%)
India, once the global leader in freelancing, has fallen to the seventh spot in the ranking of the top ten freelancing countries in 2019, with a 29% increase in revenue.
A considerable portion of the Indian freelance workforce comprises individuals below 25, accounting for 21% of the total.
The Digitize India Platform initiative is a government-supported program that offers freelancing opportunities to local talent in India.
Additionally, the government provides digital skills training through the India Skills Online project, and the Ministry of Skill Development and Entrepreneurship is committed to supporting marginalized groups, especially young women.
#8. BD – Bangladesh (27%)
In the 2023 top freelancing nations ranking, Bangladesh has slipped from its longstanding position as a leader in the industry.
Freelancing is a popular option in Bangladesh because it offers financial stability and flexibility to individuals who may not have access to traditional job opportunities.
With the average monthly wage in Bangladesh being around $60, freelancing provides the potential to earn significantly more.
To support the industry’s growth, the Bangladesh government has launched initiatives such as the “Digital Bangladesh” campaign, which aims to promote the use of technology and increase access to digital resources.
#9. RU – Russia (20%)
In Russia, freelancing revenue increased by 20% last year, with freelancers making more money.
In 2020, 14 million Russians will be self-employed. The number of freelancers in the country has virtually tripled in the previous three years.
The freelancer business was estimated to be worth $41 billion in 2020 and was predicted to grow significantly in the years ahead.
According to a local poll, the average freelance salary is now more than the local average monthly wage of 38,800 rubles ($597).
Marketing communications roles are the most popular, accounting for 25% of all opportunities, followed by information technology services.
#10. SRB – Serbia (19%)
Serbia is a surprising entry to the top ten list of freelancing countries, with freelancer earnings predicted to rise 19% by 2023.
Serbia was also named one of Europe’s top countries in terms of the proportion of the digital workforce to the entire population and total employment, along with Romania.
Serbia is acquiring a reputation for generating excellent freelance developers and programmers, and numerous companies have opted to build their headquarters there, including GoDaddy, Microsoft, and Adobe.
Conclusion:
Previously, most freelancers’ work was outsourced to emerging nations from the United States and the United Kingdom.
On the other hand, Asia is one of the world’s top 10 fastest-growing freelancing markets.
As nations worldwide expand their independent workforces, the freelance market will only get more prosperous for domestic freelancers.
