Rising Cost of Living Is Driving Collaborative Growth Opportunities for SMBs and Freelancers, Survey Shows

March 21, 2023

New research from Payoneer shows almost half (46%) of surveyed freelancers around the world have seen an increase in demand for their work from global businesses compared to 2021 and over half (55%) have taken on more work in response to the rising costs of living.

Payoneer (NASDAQ: PAYO), the financial technology company empowering the world’s small businesses to transact, do business and grow globally, has today published findings from its 2023 Freelancer Insights Report.

The fifth edition of Payoneer’s annual report contains responses from over 2,000 freelancers across 122 countries, detailing the continued rise in demand for their services as businesses continue to outsource services to cut costs.

The Covid-19 pandemic accelerated the freelance revolution with people wanting to seize the flexibility and opportunities in the new world of global digital commerce and small businesses increasingly looking to utilize their services. Payoneer’s annual freelancer survey is a temperature check of the global freelancer economy and the businesses that hire them, looking at areas such as demand for services, sector growth, response to macroeconomic pressures and wellbeing.

The survey shows that demand for freelance work continues to trend up, continuing the trend that was seen at the start of the pandemic. Despite the fears of a global economic slowdown, respondents are seeing an increasing demand from digital businesses looking to augment teams as they grow across borders.

The key findings from the 2023 Freelancer Insights Report include:

  • Almost half (46%) of the surveyed freelancers around the world report that they have seen an increase in demand for their work from the global businesses that hire them compared to 2021.
  • Over half (55%) also report that they have taken on more work in response to the rising costs of living compared to 2021. Freelancers are taking action, with 41% raising their rates and 32% expanding to new geographies.
  • 73% of respondents identified finding new clients as their biggest challenge.
  • The fields of programming, marketing, project management, and web design saw the most significant increases in demand over the past year.
  • The gender pay gap is narrower in freelance work, but men are still more likely to charge higher rates. Women are 8% less likely to increase their rates and men’s rates grow faster over time than those by female freelancers. The average hourly rate for female freelancers is $22 compared to $24 for men.

Adam Cohen, Chief Growth Officer at Payoneer, commented on the findings:

“We are living through a digital commerce revolution and the global freelancer economy is clearly an integral part of that. These survey results show that there are huge opportunities for SMBs around the world to tap into what is now a truly borderless workforce. The continued growth across SMBs and freelancers has a mutually positive impact as they open doors of opportunity for one another and we expect to continue to see them flourish in a digital-first environment. A competitive market might mean that some freelancers are struggling to find the right work but the opportunities in the marketplace remain available to them and they continue to show resilience in the face of significant economic pressures.

“We are proud to be playing our role in facilitating their success in the global digital commerce system and look toward the future with optimism for SMBs and freelancers alike.”

Payoneer’s full report can be found here: 2023 Freelancer Insights Report

About the research

The fifth edition of Payoneer’s Freelancer Insights Report is a compilation of responses from over 2,000 freelancers across 122 countries, all of whom are Payoneer customers. Once again, the survey highlights how extremely resilient the freelancing industry can be in the face of new challenges, providing interesting insights into how SMBs can leverage this important resource in the year ahead.

About Payoneer

Payoneer is the financial technology company empowering the world’s small businesses to transact, do business and grow globally. Payoneer was founded in 2005 with the belief that talent is equally distributed, but opportunity is not. It is our mission to enable anyone anywhere to participate and succeed in the global digital economy. Since our founding, we have built a global financial platform that has already made it easier for millions of SMBs, particularly in emerging markets, to pay and get paid, manage their funds, and grow their business.

Forward-Looking Statements

This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Payoneer’s future financial or operating performance. For example, projections of future volume, revenue, transaction cost and adjusted EBITDA are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “plan,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) changes in applicable laws or regulations; (2) the possibility that Payoneer may be adversely affected by geopolitical and other economic, business and/or competitive factors; (3) Payoneer’s estimates of its financial performance; (4) the outcome of any legal proceedings; and (5) other risks and uncertainties set forth in Payoneer’s Annual Report on Form 10-K for the period ended December 31, 2022 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements.

Source: Payoneer