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A gloomy economic outlook?
Freelancers remain concerned with the direction of the UK economy. Six in 10 report a negative outlook for the economy over the next twelve months, while 39 per cent are worried about their business performance in the next year.
But despite uncertainty in the economy, there has been a recovery in business confidence compared to the previous quarter. A third of freelancers expressed confidence in their business performance over the next twelve months. This is compared to just 15 per cent who were positive about their business when surveyed in Q2.
Earning power lowered but things expected to improve
The average daily rate of freelancers fell to £403 per day in Q3 2016. This is down from £421 in the same period last year. Additionally 62 per cent of freelancers expect their business costs to increase in the next year.
More positively, four in 10 expect to increase their rates in the next 12 months. And although day rates have dropped, they remain higher than those of equivalent employees. Freelancers listed personal brand, innovation of services and collaboration with other freelancers as factors that will have a positive impact in the next 12 months.
Key findings of IPSE’s Q3 2016 Freelancer Confidence Index
- IPSE’s headline index score indicates freelancers’ confidence in their business over the next 12 months stands at -2.6, up from -24.2 in Q2 2016.
- Confidence in the UK economy over the next 12 months stands at -28.3, up from -40.3 in the previous quarter.
- 62 per cent of freelancers expect business costs to increase in the next 12 months.
- Freelancers were on assignment for 74 per cent of Q3 2016. This is a drop from 87 per cent, the highest level on record, posted in Q2 2016.
Chris Bryce, IPSE CEO, said: “Brexit gave freelancers pause for thought, but confidence may be beginning to return in their business outlook. We want a post-Brexit Britain freelancers can thrive in.
"Autumn Statement will be critical in returning confidence to the sector and we hope to see the Chancellor announce measures to support independent professionals.”
Professor Andrew Burke, Dean of Trinity Business School, Trinity College Dublin, and co-author of the report, said: “The negative impact of the outcome of the Brexit referendum has caused a massive decline in the performance and confidence in the freelance sector.
"Prior to the referendum the freelance business sector was broadly on an upward trajectory with improving earnings and business confidence. Now, not only has this upward trend been reversed into a downturn but the freelance sector has dived to record low levels of business performance with all the indications that this fall has yet to bottom out.”
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Susie Hughes © Shout99 2016
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