Payoneer has released its Freelancing During Covid-19 report based on a survey of over 1,000 freelancers from more than 100 countries, providing insights on the impact of COVID-19 on the economic outlook for freelance services and how it will shape business practices after.
The coronavirus pandemic has hit every industry really hard and the remote workforce is also bearing the brunt of the global economic slowdown.
The demand for freelance services has reduced significantly due to COVID-19, however, freelancers are optimistic that the demand will rebound as the world returns back to normal post-pandemic.
Expressing his views on the current situation, Scott Galit, CEO, Payoneer, said:
Payoneer surveyed more than a thousand freelancers and found that 53% believe demand for their services will increase once the pandemic is over. There’s already been rapid growth in new freelancers entering marketplaces. Much like the downturn in 2008 where we saw a freelancer surge that many called the ‘industrial revolution of our time,’ companies will start to rebound and rebuild as the reopening of the economy begins.
Without further ado, let’s have a look at all the Pakistan-specific statistics for freelancing services in the country:
Demand on the Low Side
Following the global trend, the demand for freelance services in Pakistan has been impacted by COVID-19. 64% of the survey respondents have reported a drop in their business whereas 15% said that their demand remained the same. The remaining 18% have witnessed an increase in demand for their services.
Asian and Australian Markets are Performing Slightly Better
Freelancers have reported the greatest drop in demand for their services to be from clients in Europe and North America. As per the survey, the drop is greater than 50% in both Europe and North America whereas the figure stands at 48% for Asia and 43% for Australia.
The Payoneer’s report suggests that demand for freelancers will be back with a bang once the road to recovery begins around the world.
Team Managers are Keeping Things Stable
The financial crisis hasn’t dampened the spirits of freelancers managing teams as most of them intend to keep the same team. The report states that 24% of the respondents are either adding members to their teams or keeping it the same size as it was before the outbreak. Only 9% answered that they will be downsizing their teams.
Rates Have Remained Unchanged
Despite the ongoing financial slowdown, a majority of the freelancers feel confident that they are charging fair rates for their services. 60% of the freelancers said that they have retained the same rates whereas 35% responded that they are now charging less for their services.
Only 4% have increased their rates in recent times. As per the recent survey, the hourly rate stood at $21/hour, up from $19/hour two years ago.
Freelancers are Expecting a Bright Future
The coronavirus pandemic, that has forced everyone to work from home, has normalized remote workforce. With bosses realizing the benefits of working from home, it is highly likely that many will stick to the model even after the crisis is over.
This also highlights the fact that freelance marketplaces will be more lively than ever as 70% of the survey respondents are hoping a significant increase in their demand after COVID-19.
Team Rates Have Remained the Same
While the managers in companies and organizations are resorting to decreasing salaries, freelancers are showing resilience with a majority of managers are either retaining the same rates (24%) or increasing hourly rates (1%) for their team members. Only 8% of the respondents said that they are now paying slightly less to their teams.
Pakistan is one of the biggest freelance markets with a huge number of freelancers relying on the gig economy by offering their services on different marketplaces.
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