Amazon and a few other giants might spur economic development in a few lucky places, but municipalities are more likely to see sustained growth by successfully encouraging freelancers in their cities, according to a recent report.
That is because the freelance sector of the U.S. economy is large and growing larger. Nationwide, there are about 53 million freelancers, or workers on a contract basis for multiple entities, Fast Company reports, citing Upwork data.
Freelancers form about 36% of the workforce, and contribute around $1.4 trillion to the U.S. economy. According to Upwork, the majority of the U.S. workforce will be freelance as soon as 2027. A few places are taking steps to promote freelance growth. In 2017, New York City strengthened protections for freelancers in its Freelance Isn’t Free Act, which specified that freelancers have a right to a written contract and timely payment. San Francisco offers a freelance/independent contractor starter kit on its business portal website.
One important consideration for cities in promoting the freelance economy is connectivity that goes beyond mere WiFi, Quartz reports.
Sustained freelance growth requires more, such as taking idle city-owned spaces and converting them to collaborative workspaces, or supporting networks and associations that facilitate independent worker connections.
Cities must also pay attention to initiatives that serve the needs of independent workers, Quartz said. These tend to involve access to health insurance, but also tax, financial and retirement planning.
Some cities already have an advantage when it comes to attracting freelance workers. According to a 2016 report by NerdWallet, Austin, Texas, is the best place in the country for freelancers, with a monthly median income of $2,179 (after taxes) for self-employed workers, second only to San Francisco — where the cost of living is considerably higher. Nashville, Tennessee, is the second-best city, not only because of a lower cost of living, but also because of local initiatives such as WorkIT Nashville, which encourages technology workers to move there. Many of the 7.4% of Nashville’s workforce that are self-employed work in the information industry.
Other top cities for freelancers are Dallas; Atlanta; Louisville, Kentucky; and even San Francisco, though that city is the most expensive in every category. Even so, highly paid freelancers tend to cluster there: Professional and scientific services are 13% of this city’s freelance workforce, NerdWallet reports.
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