The R word is starting to creep into the headlines in 2022.
Is one possible?
Is one imminent?
If it is, what does it look like to secure freelance and contract work during a recession?
No one can know for sure whether or not a recession is going to happen this year or next. But economic experts are seeing strong indicators, and a shocking 98% of CEOs are planning for one in the next year to year-and-a-half.
No, no one can confidently predict a recession, but there is near-unanimous agreement on one thing: Securing freelance and contract work during a recession is the best way to sidestep layoffs and other financial turmoil.
It makes perfect sense when you think about it. Companies are slashing head count in an effort to save money. But, while they’re letting go of full-time employees, they still need people to do the work.
Enter freelancers and contractors.
Because there’s no long-term commitment, and because clients are paying on a project-by-project or month-by-month basis, the work gets done while the company saves money.
I love this Fast Company story that puts an appropriately rosy outlook on freelancing through a recession. And I appreciate Fiverr’s research that indicates 85% of business owners are freezing hiring — and that indicates 43% of those owners plan to hire freelancers instead of full-timers.
We’re getting double-whammied right now with the threat of a recession plus killer inflation. As a silver lining to that one-two economic punch to the gut, many Americans are getting a head start on second jobs and side hustles just to have some extra cash as prices rise. Those new side hustlers are going to be the ones with less stress if and when a recession officially arrives.
I’ve been freelancing for 8-plus years now, and I can tell you this with certainty: There’s a lot less anxiety about the security of your day-to-day job when you’re raking in serious money through a side hustle.
Start yours now — and enjoy the benefits when the economy slows down.