Tremendous strides have been made in international freelancing trends over the years. A recently compiled Global Gig-Economy Index by Payoneer has revealed startling insights into the current state of freelancing activity worldwide. Remote workers have global appeal to companies across the board. Their familiarity with the digital world allows them to provide online services to the small and medium-sized enterprises, wherever they are located. As a world-class provider of cross-border payments, Payoneer is a key player in the Global Gig Economy. Highlights of the report indicate that the 35 – 44 age group a.k.a. Generation X tops all other age groups in terms of its earning capacity.
Number Crunching Reveals Fascinating Trends
The Payoneer network comprises 300,000+ freelancers, outsourcing professionals, and service providers. The Global Gig-Economy Index report from Q2 2019 provides in-depth insights into the freelancing economy, and the countries which are driving this tremendous growth. The freelancing pool is dominated by the 25-34-year-old age group with 48% representation. Next up is the 35-44-year-old age group with 23% representation. In third place is the 18-24-year-old age group with 16% representation. It’s interesting to point out that outsized earnings were generated by the 35-44-year-old age group at 32.5% of all earnings. This is far greater, percentage wise, than the 46.2% of earnings generated by the 25-34-year-old age group.
Clearly, the Global Gig Economy is being dominated by freelancers aged 35-44, despite them comprising less than a quarter of all global freelancers.
A New Focus on Pakistan
There is a significant pool of talented professionals on the subcontinent, particularly in Pakistan. The Global Gig Economy Index features a listing of top 10 countries by year-on-year revenue growth. Notable inclusions in the report include the following countries:
The Gig Economy is a thriving marketplace for employers and freelancers since it allows companies to tap into a rich vein of talent, irrespective of nationality, immigration status, borders and boundaries, time constraints, and other regulatory frameworks. Freelancing is the preferred form of employment for hundreds of millions of people around the world, particularly in rapid growth economies like Pakistan where the youth are taking to the digital economy in their droves. The explosive growth of the Pakistani Youth Gig Economy is unprecedented. Consider that in Q3 2018, the year-on-year growth was just 4%. By Q4 2018 that figure spiked to 17%, and grew to 28% by Q1 2019. According to the latest Payoneer chart, Q2 2019 year-on-year growth was measured at 42%, with strong upward potential.
Pakistan has a large population, many of whom are young people. With limited work opportunities in Pakistan, the new generation has taken to the digital economy for employment opportunities. The overwhelming majority of Pakistan’s population is under the age of 30, and the Gig Economy is a natural first choice for many tech-savvy people. In Pakistan, the 25-34-year-old age group comprises 57.6% of all revenue generated through Payoneer. When viewed in perspective, people aged under 35 are responsible for 77.3% of all freelancer earnings in Pakistan. People aged 35+ comprise 22.6% of revenues generated in Pakistan. Clearly, this country is heavily skewed in favour of the younger generation, and this accounts for strong earnings growth year-on-year.
Takeaways from the Latest Global Gig Economy Index Report
Freelancer activity is on the rise, particularly in Asia-Pacific, where countries like Pakistan, India, Bangladesh and the Philippines are characterised by strong year-on-year growth figures. Pakistan has emerged as a power player, by dint of its young population, and a preference for remote work. A significant investment of resources in technical education, online literacy, Internet connectivity, and telecommunications infrastructure has fuelled a strong uptick in revenue generation and freelancer participation in the global online economy.
It comes as a surprise that leading global payments provider, PayPal has refused to get involved in the Pakistan economy for the time being, saying that the company has in-house issues to take care of before they can introduce PayPal services in Pakistan. PayPal is looking to secure government backing to protect its own interests, since it fears corruption and money-laundering activity in Pakistan could adversely affect its reputation.
Nonetheless, Payoneer continues to serve the needs of Pakistani freelancers, and the market is enjoying unprecedented growth and prosperity. Mohsin Muzaffer, Head of Business Development for Pakistan
Payoneer will keep on investing in community building. One of the core values of Payoneer is to be customer centric. For this, it is very important for us to keep reaching out to our customers and overall market to learn how can we better help them.