Freelance contractor Upwork had its best year of growth as a public company last year, and CEO Hayden Brown sees no sign of momentum that began before the coronavirus pandemic slowed when the economy reopened.
Younger workers, who are struggling in just over a decade under a labor market plagued by two recessions, are increasingly seeking more control and flexibility over their careers. The trends have only been heightened by the remote world of work, which gives businesses the opportunity to adapt and leverage a global pool of talent from independent professionals, she told CNBC on Wednesday.
“The paradigm has completely shifted,” Brown appeared on “Mad Money,” saying that recessions in 2007 and 2020 dampened workers’ confidence and loyalty. “We’ve seen it again for years. It’s not a new trend, but it has certainly accelerated today with more than half of Gen Z freelancers and 59 million Americans freelancing.”
Gen Z, the abbreviation for Generation Z, consists of young people who are currently in adulthood or are now, and are now weakened by an economy with pandemics. The age group is also known as zoomers.
Millennials, the older counterpart, came of age during the Great Recession.
Upwork, a labor market that became known in 2018, helps businesses leverage the gig economy for both short- and long-term projects. The independent economy disrupted various industries and gave rise to household names such as Uber and DoorDash.
Brown said more than 70% of the freelancers on the platform are at university and many earn high wages.
Unlike driving apples like Uber, which rose 21% in the midst of the pandemic after years of multi-digit growth, the Upwork small business grew by 2020. Revenue from Santa Clara, California, has risen 24% over the past year to $ 373.63 million.
Shares have risen 522% over the past 12 months and peaked at 52 weeks on Wednesday before closing at $ 53.36.
“This is a long-term trend that is taking place in the workforce, and companies are waking up to the fact that if they want to work with the best talent, they need to leverage the independent economy,” Brown said. “They can’t limit themselves to full-time employees.”
In 2021, Upwork expects business to grow by at least 23%. The $ 6.5 billion company provided full-year revenue of $ 460 million to $ 470 million.