A new book about Coworking, Coworking Spaces, and Coworkers.
A new book about Coworking, Coworking Spaces, and Coworkers.
It’s time for the annual “Freelancing in America” survey from the Freelancers Union*!  As in previous years, this is a survey of 6,001 (why not 6,000?) workers. Anyone who report any kind of temporary employment, including moonlighting, is counted as a “freelancer” in this survey. Notably, 28% report that they are full time freelancers.
This study estimates there are 50 million freelancer workers in the US (by their expansive definition of “freelancer”), which is up slightly from 2018, and roughly the same as 2017. Similarly, the percentage of “full time” freelancers remains unchanged. Regardless of the headlines, this study shows freelancing is not growing.
I think it is important to view these numbers in the context of the historically high employment rates in the US in the past several years. There have been plenty of opportunities for employment conventional and freelance. In an economic downturn, we can expect the number of “involuntary” freelancers to increase dramatically.
Many of the other findings document the work life of freelancers. Many freelancers work remotely, especially technical and media workers. This location flexibility is desirable for workers, and one of the reasons people choose to freelance.
The report finds median hourly pay of $20 over all, $28 for skilled workers. This is shockingly low, especially when this has to cover overheads, insurance, etc., and even more because most freelancers are not full time.
The survey notes that, even in this hot job market, Freelancers feel insecure, and many are preparing for a future downturn. Like all workers in the US, Freelancers have trouble getting health insurance and have troubles with debt and lack of savings.
For the first time this year, many of the issues raised reflect the reality that a freelancer is operating a small business. A proportion of their time is not billable, and they desire more education and training for the skills needed to operate such a business.
On that last point, I certainly agree. For several years, I have been trying to figure out how such training—and, indeed, awareness of freelance careers—might be introduced in local high schools. Introducing anything to high schools is difficult. Sigh.
Nit Pick: The survey makes the irritating claim that Freelancing amounts to 5% of the GDP (basically estimating the total wages of “freelancers”), which they then compare to “Construction” or “Transportation”. Look, “Freelancing” is a type of employment contract (actually, multiple types), not an “industry”. For that matter, some freelancers work in construction, etc. This is a pointless and misleading number.
The bottom line is, according to this survey, Freelancing has not grown in the past three years. Freelancers say that they like Freelancing, and choose to do it. However, in many sectors, especially media and entertainment, Freelancing seems to be the only option available for workers. And the Freelancing life may be flexible, but the pay is shockingly low, and the future uncertain. In this good economy, work is plentiful, but that can and will change.
This is a distinctly mixed picture, and remember that we are in a moment of peak employment. The next downturn will see gig workers rapidly losing hours and pay, much faster than conventional workers.
*Disclosure: I am a proud member of the FU.
In the past, I have noted the potential for coworking spaces outside major cities and generally in what the US calls “the flyover states”, outside the dominant cultural centers on the coasts.
This month there have been a flurry of articles about a “brain gain”, reporting that people are moving to out of the way places, including small towns [1, 2]. This counters the dominating narrative that all the kids leave for the big city, and that small towns are dying.
OK, there is some hype here. A handful of people moving into a small town is a big deal for that town, but it’s just a trickle compared to the flood pouring into NYC, LA, and the Sun Belt. Plus, it never was the case that everybody was leaving, or even all the “best”. So, it never was quite the way Girls portrayed it.
(And, knowing local Chamber of Commerce folks, I know that there is some motivated storytelling going on.)
But overall, this is plausible and even a good thing.
In the “Future of Work”, many workers can work from anywhere, so long as there is decent connectivity. And, as I have pointed out, depending on how you want to live, the standard of living can be way better outside a metropolitan area.
Earlier I discussed a recent survey of Freelancers in NYC, and pointed out that the survey focused on Freelance workers who live in NYC. The survey implicitly assumed that these workers also work in NYC, which, of course most do. But many of them probably have remote gigs and they probably collaborate (and compete) with Freelancers who live elsewhere and work in NYC. These variations on life and work were not really explored by that survey, which aimed to boost living the La Vida Giggada in NYC.
The fact is, if you are successful, you can move out of the city and keep working.
And when you do, you might well want to have a local coworking space in your new location. It will be filled with other “freelancers in flyover land”.
So yeah. It’s not just me. It’s a real thing. I know dozens of people who either never moved to the big city or came back to make a good life.
The Freelancers Union* has released a new survey of “Freelancing in New York City” .
The headline number is that 34% of workers in NYC “is freelancing”. Wow! (That would be over a million workers.) The study finds that in “media and entertainment” 61% of workers have freelanced in the past year.
The report touts the Big Apple as an especially favorable environment for freelancers, for the same reason as it is favorable for all workers (opportunity, professional networking, etc.)
So what does this all mean?
First of all, this is a web survey, which means that it is pretty difficult to assess how representative it might be. I tend to be skeptical of the reported margins of error, given the format of the survey. Granted, the target group of the survey is comparatively likely to be reached and sampled by this methodology, but who knows?
“This study surveyed 5,000 residents in NYC who work in the greater NYC metro area. Within this NYC worker population, the study looked at those who freelance (N=1728) and media and entertainment workers who freelance (N=432). The study was fielded from March 22, 2019 to April 18, 2019. Margin of error for each audience group are as follows: NYC Workers Overall: ±1.3% at the 95% level of confidence. NYC Freelancers: ±2.3%, NYC Non-freelancers ±1.7%, Media & Entertainment freelancers ±4.7” (From )
A more important point is that the definition of “freelancer” seems to be “anyone who reports working freelance at any time during the year”. This includes people who work exclusively or mainly as independent contractors, but also moonlighters who have a conventional job. As far as I can tell, the definition of a gig is up to the respondent, and one gig of as little as a few hours might be counted as “freelancing” for this study. In other studies from this group, the workers who could be considered primarily freelancing are considerably fewer than the most inclusive definition, so the headline about “one third of workers” is misleading.
Nevertheless, the findings about the “media and entertainment” sector are plausible. These industries have always been filled by part time and independent workers, so in this sense nothing has changed in this supposedly “new” gig economy.
The survey found that the responding freelancers are worried about their irregular work and income, and also about late or non-payment. If these workers can’t get enough work in this economy, then there certainly should be very real concern for what will happen in the next downturn.
One interest point the report emphasizes is that many freelancers indicate that the choose to freelance. (This is a pretty important ideological point for the FU.) But, if two thirds of “media and entertainment” workers are freelancers, it sounds like there isn’t all that much choice about it—you freelance or you don’t work. Perhaps the emphasis on how much freelancers prefer freelancing is a bit of cognitive dissonance, putting forward the positives for what must be done out of necessity. Or perhaps contemporary freelancing is a “better way” to do what desperate screenwriters have always done.
What does this survey mean to the rest of us, who are not in NYC? In other parts of the world, I bet the freelance life is pretty similar, if not as trendy as the Big Apple.
The sixty four million dollar question is whether you need to actually live in NYC, or not to succeed. Freelancing or not, NYC has huge opportunities, but you’ll have to scramble to make the most of them. Perhaps freelancing is particularly suited to this scramble, in any case it certainly is the way many workers live.
Lots of other surveys show that many freelancers work remotely, which means that it should be possible, in principle, to participate in the NYC markets while living back home. So why move to the city?
I’ll note that this survey apparently doesn’t sample workers who live elsewhere but “work in NYC”. I suspect there are a fair number of them, and that’s probably a bigger story than whether they are freelancers or not.
*Disclosure: I am a proud member of the FU.
In a recent blog post, Gary Alton raises the 64 million dollar question: “Tech Opened the Door to the Gig Economy, But Is It Here to Stay?” .
First, his title agrees with my own conclusion that the Internet enabled the gig economy, but did not and does not determine its course. The gig economy (however you define it) is one of many experiments the ubiquitous internet has made possible.
Writing from the point of view of tech workers, Alton summarizes the by now familiar advantages and disadvantages of the freelance economy. For workers, flexibility, but little security. For businesses, cheap, easily replaceable labor.
The same blog had a separate article with yet another potential disadvantage of gig workers: “Remote Workers Are Driving Network Security Professionals Crazy” . Anna Johansson points out that all these freelancer who work remotely are generally exposed to security breaches, which is kind of a problem.
She lists five obvious challenges, though they all stem from working off site, via multiple networks including public access points. Freelancers value “flexibility” and “convenience”, but these are anathema to network security, which needs rigorous and often annoying control.
Generally speaking, the more important the work, the more security you need to protect it. So this means that remote workers, including freelancers, either cannot do critical work, or must use extraordinary technical security to protect the business interests.
If it were me, I wouldn’t let anyone do anything important remotely. I want to keep my data and IP inside my fortress, and I mean a physical not a virtual fortress.
So maybe gig workers will be limited to low risk work, which is also low pay work. That’s not so good.
On Alton’s second point, “Is It Here to Stay?”, I will repeat what I have said before. The current gig economy has only existed in the upswing of the recovery from 2009. We haven’t seen a major recession yet (though the “media” industry seems to be contracting every year somehow).
One of the entire points of gig work is that it is short term and contingent. The next big downturn will pressure businesses to shed costs and workers. Gig workers will be hit first and will be hit instantly. In fact, you don’t need to even fire a gig worker, you just let out fewer short term contracts.
Essentially, the gig economy will make the next recession see a rapid flash crash of employment, in the form of a severe drought of gigs and probably even lower pay for gig workers.
This will have a knock on effect on the coworking industry. A widespread recession in freelance gigs will cause many workers to drop out of their coworking spaces, and many workspaces will crash.
As goes the freelance economy, so goes the coworking industry.
By the way, my own guess is that WeWork will implode under a mountain of debt, while smaller, more locally grounded operations may survive.
So: is it here to stay? Maybe. But neither gig working nor coworking are going to look so great after the next recession.
For several years I have been advocating for coworking spaces to incorporate child care. It’s the mountain we have to climb, I have said. This is a difficult thing because you have to be good at two businesses, which generally means finding the right partners. And both businesses are pretty low profit, so you aren’t likely to get rich.
This month the Global Coworking Unconference Conferences (GCUC) blog reports on some of the Coworking Spaces that are offering child care.
“In every facebook group, forum, contact form and unconference- Coworking and childcare comes up. While most of us agree that it is needed and the next step in the “co” niche movement- there is a real lack of information around it.” (From )
In three installments (so far), they talk with the operators of five coworking spaces about what they do and the challenges they face [1,2,3]. It’s a small sample, but there is interesting information. These spaces are rare, and in many cases are pioneering this challenging service.
All of the responses indicate that they are responding to their own experiences as working parents (mostly moms). Coworking is largely worker driven, and is simple and cheap enough that it is possible to experiment. So, working moms are able to try out solutions to their own challenges.
Reflecting this spirit of experimentation, it is very striking that there doesn’t seem to be “one right way” to set things up. In this limited sample, we see the kids’ space:
Some of the spaces want to staff the child care cooperatively, i.e., by the workers. But most hire professional caregivers, or contract with a professional child care operation. This is expensive, especially compared to the relatively low staff costs for a coworking space, and that is a challenge for all of them.
I’ll note that one operation is located in a community center, which has child care. And another is located in a church, and does child care at a second church. I think these are very natural alliances, even without the child care.
Actually, I’ve been rather surprised at how few church-based coworking spaces seem to exist. That seems like a really natural win-win: there is a ready made community, the church has facilities (including child care), and probably has space available on workdays (and would welcome the income). Of course, there probably shouldn’t be wild, all night keggers in the church basement, so I guess that might be a minus for some workers.
Finally, I’ll point to one interesting coworking operation that was not interviewed for the GCUC series (at least not yet). Our local town has the Lodgic Everyday Community, with “offices, coworking space, drop-in childcare, and all-day dining options”.
This operation was built from the beginning as multiple businesses, including child care from the get go. In other words, none of the components is a slapped on after thought.
The most interesting thing about this space is that this is not the product of entrepreneurial moms, seeing a need. It is, in fact, an initiative of the non-profit Moose Lodges, who aim to serve working families and earn income to support their children’s charity activities. So this is yet another variation on the theme: a twenty first century service organization.
It will be interesting to see how their efforts play out, and if they replicated the operation in other places.