Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
- Freelancing is rapidly increasing, with LinkedIn’s Services Marketplace experiencing a significant 48% growth in freelancer sign-ups within a year.
- LinkedIn’s platform is benefiting from economic conditions and layoffs, with service requests up by 65%, although these are inquiries rather than confirmed transactions.
- Despite having only 1% of its user base engaged in freelancing, LinkedIn’s strategic focus and premium features are driving revenue growth and reinforcing freelancing’s appeal as a career path.
Freelancing is experiencing a massive surge, with LinkedIn announcing that 10 million individuals have signed up as freelancers on its Services Marketplace.
This figure represents a 48% increase in just one year, highlighting a broader trend in the job market where many are choosing — or being forced — to pursue flexible work arrangements.
The Rise of Freelancing
In 2023, more than 100,000 people were laid off in the technology sector alone, leading many to reconsider their career paths, according to Tech Crunch. While some may seek traditional employment again, a significant number are opting for freelancing instead.
Continuing economic pressures, such as rising living costs and inflation, have pushed individuals toward supplemental income streams. Freelancing offers a way to earn extra money without committing to full-time employment. For many, it provides an opportunity to diversify income and maintain a better work-life balance.
LinkedIn launched its freelancer marketplace in 2021 to capture this demographic, aiming to connect freelancers with businesses in need of services.
Despite challenges faced by other freelancer platforms, LinkedIn’s marketplace is thriving.
Service requests are now averaging eight per minute, reflecting a 65% year-over-year increase.
However, it’s important to note that these figures represent inquiries rather than completed transactions, leaving questions about the actual commercial engagement levels.
Contextualizing the Numbers
LinkedIn’s Services Marketplace has attracted 10 million freelancers from a user base of just over 1 billion, meaning only about 1% of users are utilizing this feature.
Comparatively, competitors like Fiverr and Upwork have millions of users but do not disclose their seller numbers, making direct comparisons difficult. Fiverr reports around 4 million buyers, while Upwork has approximately 868,000.
When LinkedIn introduced its marketplace, it capitalized on the rising demand for flexible work spurred by the COVID-19 pandemic.
Other platforms saw stock prices soar as businesses and workers alike embraced more fluid employment models. Fast forward to 2024, and many freelance marketplaces are now reassessing their strategies due to declining demand and shifting user preferences. This includes raising fees to maintain revenue as some workers return to stable employment.
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LinkedIn’s Unique Position
LinkedIn’s announcement of 10 million freelancers is significant as it signals the company’s commitment to this space, even amidst modest overall gains.
The platform appears to be trying to enhance user engagement and drive premium subscriptions, as those who subscribe to the Premium Business tier can increase the visibility of their Service Pages, further incentivizing freelancers to opt for paid plans.
LinkedIn reports that premium subscriptions have risen by 51% this fiscal year, generating $1.7 billion in revenue. While this is a small fraction of the company’s total revenue—over $16 billion in the last fiscal year — it demonstrates the potential for growth in the freelancer market.
LinkedIn’s Services Marketplace success illustrates a growing interest in freelancing as a viable career option.
The huge number of sign-ups reflect the societal transition toward more flexible work arrangements, showcasing the importance of platforms that connect freelancers with businesses.
