Opinions expressed by entrepreneurs’ colleagues are their very own.
Last autumn we surveyed startups about their opinions on the flexible labor force. We kept open inquiries to avoid deviation of the data set, but we predicted a generally positive sentiment.
We discovered that flexible talent is not an alternative employment strategy. It is a fundamental motor for profitability, growth and innovation. The startups consistently quoted three basic advantages:
- Get access to recent markets without the headquarters or full internal team
- Get specialist knowledge at the level of management in the field of sales, product, operations, finance and marketing for a fraction of costs
- Scale effectively, investing only if the demand is approved
The advantages are clear, but do mature firms cover this change?
The last data from the Mellow registration contractor speak absolutely. Their latest report It shows an increase of 260% in American firms employing freelancers in 2022 to 2024. Their report also shows where American firms employ freelancers, what skills are sought after, and wider implications for entrepreneurs, management staff and company owners.
Freelance not only survived, prospered for two difficult years
The last two years have been difficult. Waves of layoffs, growing inflation and widespread employment freeze. If the flexible working strength were fashion, it will disappear like other business fashions. NFT, quiet resignation and great resignation – call the bell?
Instead, the firms double their flexible workforce. CV Builder showed that 40% of firms employed contractors in order to interchange dismissed employees, and 53% transferred employees full to contractual positions in 2023. Mellow data show that this trend lasted until 2024.
Later in this text, I’ll explain why freelancers are not only a short -term amendment, but also a strategic advantage in today’s environment vulnerable to release.
Companies employ more freelancers
Companies were average employment of 15 freelancers during this two -year period, which is 8% of the total labor force.
8% is significant. The independent economy is still relatively young. Though Grand View Partners It is estimated that global independent platforms have 17.7% CAGR in 2025–2030, freelancers often constitute lower than 1% of the company’s workforce. Freelancers are often hidden and coded as temporary employees, part -time consultants or suppliers’ name to avoid confusion or red flags.
Some industries direct the road and provide a plan that others can follow. On average, Edtech reached 108 freelancers, and promoting firms on average 34 contractors. Research informs that “it was nothing unusual to find more freelancers than full -time employees.”
Do Edtech and promoting signal what is waiting for other industries?
The growing tide raises all boats (geographically)
Each freelancer employed in the Mellow data was based outside the USA
For most Americans, this probably seems disturbing, feeling incredibly just like the patronage of the rust belt in production.
But this is only a part of the story. Mellow is a contractor for records for American firms employing rising regions. And when we glance at wider independent data, we see a wider picture. Instead of fear, we perceive an independent global trend, with flexible working models as a global standard that Americans can use and not get replaced.
Instead of replacing American employees, the transition to flexible work models creates recent opportunities for each firms and natural individuals.
This becomes visible when you look at the latest data.
- The leading Freelancer Finance Platform Collective shows 8.27% Yoy Growth In revenues for American Solopreneues in 2023–2024.
- MBO partners Showed a full -time full -time increase in the full -time hours in 2020–2024 and an increase in independent US by 56.6%, earning over 100,000 USD.
- MBO also showed 5.45% higher CAGR for the US independent working strength in comparison with traditional employment. Compare this with full -time statistics, and the difference is obvious.
Freelance is not about offshoring; It is about decentralization of labor and enabling more agile firms.
Hiring in Eastern Europe is growing while Western Europe is falling
Eastern Europe was the biggest winner. There was a 106% increase in North American firms employing from Poland, Romania and Hungary. If you noticed your entrepreneurial friends booking flights to Poland to go to their programmers, subsequently.
According to Alex Norovyatkin, the head of Mellow’s growth: “As you can see, more and more companies are employing contractors of Eastern Europe. There is an excellent balance of costs and skills of workforce. This population really wants to work for American companies. “
Other key observations from Mellow data:
- Mena recorded a 60% increase in employment from North American firms
- Asia has experienced 39% growth
- Employing a freelancer in the EU has dropped by 40%. Norovyatkin cited strict contractors as a reason for the inheritance.
Return to the office (RTO) and exemptions will probably increase the independent labor force
2025 presents an interesting set of challenges for independent workforce. The recent Washington Post headline states “The exemptions went to contractors“In relation to the US government. The exemptions also happened SalesforceIN Business day AND Walmart This yr.
Meanwhile, the major corporations reminiscent of Dell, Amazon and JPmorgan implement raw RTO fines.
In each cases, I predict that the employment of freelancers will increase.
Regarding dismissals, next to CV Builder The above data, freelancers, are extremely positioned to achieve success in a vulnerable environment, because they are often embedded in teams, 30 to 60% cheaper than comparable external talent solutions, and have smaller strings, enabling leaders to cut back, and do not release.
When it involves RTO fines, freelance is not only distant. In fact, independent models are a rapidly developing segment. Listened to by the working talent platforms on the first line, they specialize in retail, hospitality, and even factory employees, personal independent models will solve huge challenges for a traditionally high departure, high burning and high -quality workforce.
And accelerates the need for fractional talent
The AI gene drives the demand for AI’s fractional knowledge along with complementary roles, reminiscent of web site design and research evaluation. Mellow data indicate a 130% increase in employing independent web sites of internet sites, 52% increase in the variety of programmers, 50% increase in analysts and 28% increase in designers.
AI also moves the transition from employment based on the role to employment based on skills, and the talent platforms are perfect for this. Talent platforms are aimed at recruiting what Uber was for taxis. Instead of long resumption and army of recruiters, talent platforms use tagging, digital networks and recruiters of individuals to match the exact skill sets with the exact needs of the recruitment manager. On average, finding the perfect candidate inside 2-5 days, with 30-60% savings, has reached over 90% of time with expectations.
In each cases, the impact is that as a substitute of maintaining a large, bureaucratic core in the full -time company, the company can operate with a slim set of full -time employees supported by an extensive network of independent.
Embrace freelance to avoid interference
Talent is not just a HR strategy, it is a basic business strategy that company owners, entrepreneurs and management must accept.
The data explain that firms already take flexible work, and the change is cost saving; It’s about responding to digital progress reminiscent of Agentic AI.
But what if it is not you? What if you are an entrepreneur who sticks to a full -time way of considering?
Unfortunately, time is not on your side and unlike technological progress, lateness does not mean lower prices; This means closing from the best talent. Unlike the myth of freelancers jumping from one customer to a different, freelancers hold two to 5 customers, adapting their load based on demand. This signifies that although there is a lot of freelancers today, tomorrow there could also be a deficiency, and when this deficiency is closed. The data show that this deficiency may occur sooner than you think.
Have you heard the famous quote from Ernest Hemingway in The sun is also rising? When Bill was asked how we went bankrupt, he answered, “Two ways. Gradually, then suddenly.“
Don’t be a bill. You had two years to take gradual steps. Now we are in “suddenly”, and firms without a flexible labor force are just waiting for progress, reminiscent of Deepseek, macroeconomic events reminiscent of tariffs, or something as random as a competitive product that obtains the TIKTOK algorithm to disrupt.
If you are an entrepreneur, you are in a blissful place. Instead of worrying about structural change and bureaucracy, you’ll be able to disturb “suddenly”, covering a small full -time core with a large freelancers network to unlock agility, flexibility and scalability when you discover this hit.