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We haven’t seen this many freelancers come to market for the first time since the 2008/9 financial crisis. This is largely due to big tech and financial companies cutting jobs left and right. Meta is reportedly getting rid of 1,500 people this week. Microsoft cut 15,000 roles. Amazon dropped 14,000. And here in the UK, we’re in our 39th straight month of fewer permanent jobs being posted.
Just being good at what you do isn’t enough anymore.
What’s actually happening out there
The UK unemployment rate is at a four-year high of 5.1%. Job postings are still 19% below where they were before the pandemic. This isn’t a rough patch that’ll blow over in a few months. This is a job market we all need to adapt to.
Here’s where things appear odd. 76% of employers say they’re struggling to find the right people, even though there are more people looking for work than ever.
What’s going on?
Companies aren’t looking for someone to just do tasks anymore. They want people who can think strategically, spot problems, and help solve them—without the cost and commitment of hiring a full-time employee.
The old way of freelancing v. the new way
The old freelancer: Waits for a client to tell them what to do, does the work, sends an invoice and moves on to the next project.
The new in-demand freelancer: Acts more like a consultant. Asks questions about the client’s business. Suggests better ways to solve problems. Becomes a trusted advisor they keep coming back to.
The people doing task-based work are getting replaced by AI, cheaper workers overseas, or eliminated altogether. What’s growing is the need for people who can partner with businesses and actually help them succeed.
What “fractional work” has become
You might hear people talking more about the “fractional economy” versus the freelance economy. Don’t let the term throw you—it’s actually pretty simple.
Fractional work means you provide expert-level help to companies part-time. You’re deeply involved in their business, but you’re not on their full-time payroll. You might work with three or four different companies, giving each one strategic advice and specialised skills.
Think about all those people who got laid off from big tech companies. Many of them are now running their own fractional CMO (Chief Marketing Officer), CFO (Chief Financial Officer), or CTO (Chief Technology Officer) businesses. They work with multiple companies, charge good rates, and have more control over their careers.
By 2027, freelancers will make up half of the US workforce. That’s 86.5 million people. Companies know they need expertise, but they can’t afford (or don’t want) to hire everyone full-time.
The good news
This shift isn’t all doom and gloom. If you’re willing to evolve from “person who does tasks” to “trusted advisor who solves problems,” you can actually do better than before.
You can charge higher rates. You can work with better clients. You can have more control over your schedule and your career.
You just need to think about your freelance business differently.
If you’re new to freelancing, this article series will help you learn how to up your game and think like a business owner rather than an employee. We’ll show you exactly how to make this transition. We’ll break down specific ways to become the kind of freelancer clients can’t live without.
Coming up next in the series: How to position yourself as a problem-solver, not just a service provider
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