Freelance work and earnings are on the rise in San Diego
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San Diego freelancers are making more money than they used to, but the size of the local workforce has been shrinking, according to a new report exclusively shared with Axios by freelance platform Fiverr.
The big picture: Freelancers account for 4.1% of the U.S. labor force, per the report. Many saw revenue bumps last year and expect to earn even more in 2024.
- About 29% of them nationwide also have a traditional job, though the share who solely freelance is growing.
- About 29% of them nationwide also have a traditional job, but the share of those who solely freelance is growing.
Zoom in: Freelancers in San Diego and 29 other major metros saw double-digit growth in revenues from 2018 to 2023.
- That growth was fueled in part by inflation that led to higher service prices, per the report.
By the numbers: In San Diego, they earned on average $47,310 in 2023, up about 13% from $41,744 in 2018. The estimated 2023 earnings by category:
- $56,793 for technical services (data processing, architecture, design, engineering, computer/IT, etc.)
- $48,506 for professional services (legal, accounting, marketing, etc.)
- $25,214 for creative services (artists, writers, performers, video and sound production)
Between the lines: With about 83,000 independent professionals in 2023, San Diego's workforce ranked 15th among the top markets.
- That number decreased slightly since 2018 — and in other California cities — which the report attributes to the economy and relocation.
- Yes, but: In the past year, freelancers have risen in number.
Zoom out: San Jose, San Francisco and Washington, D.C., are America's freelance capitals, with the highest annual earnings per freelancer among the 30 biggest U.S. metros.
- People in San Jose averaged an estimated $60,135, followed by $59,979 in San Francisco and $53,147 in Los Angeles.
- The markets with the most new freelancers from 2018 to 2023: Orlando, Florida; Miami; Las Vegas; Houston; Tampa, Florida; and Nashville, Tennessee.
The fine print: The report, which freelance platform Fiverr published in partnership with market research firm Illuminas, is based on data from several government sources, researchers' estimates, and a survey of 801 freelancers conducted between Jan. 26 and Feb. 7, 2024.
- The report's earnings data is based on individual tax filings as a "good approximation" for freelancers.
Reality check: While freelancing can have its benefits — like flexible schedules and locations — it can also be tough to get started, to be treated well, to get paid promptly by clients and to get health care and other benefits.
What we're watching: California lawmakers are considering a bill called the Freelance Workers Protection Act that would give them the right to contract and be paid within 30 days of finishing the work.
- If they aren't paid on time, they would also be able to seek damages up to twice the unpaid amount.
The bottom line: It's hard to make a living freelancing in San Diego.