The Freelance Economy Is Growing

I stumbled upon some interesting data in this Wall Street Journal article (subscription required). It details the growth of the freelance marketplace based on the number listings posted on job boards geared for matching professionals to temporary projects. Some numbers according to the WSJ:

Between January and March, employers posted 70,500 of these work-for-hire positions on Elance.com and 43,000 on Odesk.com, which represents increases of 35% and 105%, respectively, from the same period in 2008. Sologig.com, which lists remote and on-site freelance jobs, says its average monthly postings have more than doubled to around 13,500 per month in the past year. In March, there were 750 jobs listed on VirtualAssistants.com, versus 400 in March 2008.

This is not surprising. From the people I talk to who are still employed, they face more work and fewer resources due to layoffs. Freelancing seems like a good opportunity for corporations who want to hire workers without paying them benefits. The article also profiles one woman who makes more money as a freelancer than in her previous salary job. Some good news for people looking to make some money while searching for their next full time job.

The article also gives tips on how to get started on freelance sites:

1. Be specific about your skills and expertise.
2. To set your rate, research how much experienced freelancers charge by looking at their profile pages. Then set your rate slightly lower if you're starting out.
3. Start small. Offer a few hours of work to prove yourself.
4. Negotiate your work with employers over the phone. The personal touch adds a level of trust.

Battle Mode

I’m not an economist. I don’t play one on TV. I’m just a guy who’s been on the wrong side of two layoffs in a year.

Luckily I’m also a media junkie and an addict of This American Life, whose outstanding reports about the housing collapse and the credit meltdown jolted enough fear into my system that I adopted an aggressive savings plan. I remember vividly driving down 101 one Saturday afternoon listening to TAL and learning about the implications of the commercial paper market stalling. That’s when I realized my company wasn’t immune and would need to make some tough decisions. Such a beautiful day, such sobering reality.

I went into Battle Mode. I cut my spending by 25% and allocated that amount directly into savings. I reawakened my weekly budget spreadsheet and started to report every expense. I reinstated my left pocket, right pocket system (more on that some other day). I began considering options for my condo. I’m one of the fortunate ones because I reacted soon enough to build decent safety net. Some of my other colleagues were not so lucky—they had families to feed, mortgages to bear, debt to pay off.

I’m blogging about the economy because there are rays of sunlight that can break through these cloudy days. The worst thing for us to do now is to give in to the perception that we’re screwed. We’re not.

Lots of data, little substance

Perception is critical in the early stages of the Obama presidency, especially when it's about economic policy. It's a tough proposition. How do you engage the public without putting them to sleep with wonk speak? People want answers, and they won't settle for platitudes about what The American People want.

It's a good idea, in theory, for Obama to communicate his policies through the voices of his big-brained advisers. Or is it?

In a posting on Obama's Web site today, Christina Romer, the chair-designate for the Council of Economic Advisers talks a lot but explains little. How will they plan create 4 million new jobs (couple weeks ago it was 2.5 million)? What does weatherizing government buildings have anything to do with the economy? How will pumping money into state coffers stimulate spending? Why will it cost an estimated $775 BILLION (some say $1 trillion)? After 9 minutes of rambling, I'm still confused.