Are Part-Time Jobs Paying Less Now?
Unemployment is sinking this summer, it’s better now than in the worst lockdown-months in spring. But still very high in most countries. And this number that doesn’t tell you all, “under-employment” is another heavy problem. This means many people have work, but less than they wish to have. Many of them have only in part-time jobs or their earnings are lower than before.
Part-time jobs, side-hustles used to be very popular in crisis times. A report of Bloomberg also shows many people are trying to find part-time or freelance work.
With millions of Americans unemployed, and full-time positions scarce, there’s a massive rush to freelancer sites. One that could result in everyone getting paid less. (…) On Upwork Inc., client and freelancer registrations have jumped 50% since mid-March. On Freelancer.com, average pay per job falls 20% in six months. (…) More and more workers will be flooding the market and willing to take lower and lower wages. (Bloomberg.com)
The Q2 quarterly report of Fiverr tells us a similar story. But not only “sellers” are growing in number, means, people offering their workforce. Also are “buyers” (employers buying services of freelancers):
Strong growth: Revenue grew 82% y/y in Q2’20 with strong execution across product, marketing, and operation during the global pandemic. Historical level of new buyers: Active buyers grew 28% y/y, implying net adds of over 300K in Q2’20 vs Q1’20.
A Booming Home-Office Market
The number of registered Fiverr users grew 51 percent, to 80,000 from 53,000 in six months. But the “buyers”, entrepreneurs and companies paying freelancers, also increased their activity. I suppose the prices–loans or rewards–of the tasks are under pressure, but not in free fall. The market for part-time or full-time freelancers is booming.
The stock market prices also may reflect these trends, Fiverr stock is up over 400 percent year-to-date. And Upwork was 40 percent up.
Top-Paid and Lower-Level Part-Time Jobs
Another interesting information about this market contains a podcast about Fiverr activity:
Survey of high-income bloggers found that on average they pay $347 for a long-form 2,000-word article. For most bloggers, that number is just too high, and it makes it hard to get a return on your investment in a reasonable amount of time. Over the years I have perfected the process for finding above-average writers (…) The average price is going to be $100 to $200 for 500 Words. That means for a 2,000-word post you’ll be paying between $400 and $800. (Blogging Millionaire, Brandon Gaille.)
This successful blogger chooses lower-level, cheaper writers. He tests three different ones on the same post, with identical instructions. So he can find out which writer is the best one at lower price levels.
Conclusions for Freelancers and Part-Time Job Seekers
What means this for you? Especially if you are looking for a part-time job, or freelancer work?
- First, the market is not dead. If you have skills, you can still prosper.
- Second, there are good chances to reach high income if you get better in your job.
We don’t talk only about writers. That was an example. The same applies also for software developers, web designers, translators, graphics or animation professionals, etc.
Passive income ideas can give you a solution–in the long term. Because all types need a lot of work and efforts, see: Is It A Myth?–The Genuine Truth About Passive Income.