Report: Freelance Economy Expands Nationwide; Detroit Ranks 17th in U.S.

Economic shifts are remaking where and how Americans work, as the estimated population of independent professionals increased in every one of the United States’ top 30 markets last year, including metro Detroit, which ranks 17th in the nation with 83,483 freelance workers.
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Freelancer
The metro Detroit market has the 17th most freelance workers in the nation. // Stock photo

Economic shifts are remaking where and how Americans work, as the estimated population of independent professionals increased in every one of the United States’ top 30 markets last year, including metro Detroit, which ranks 17th in the nation with 83,483 freelance workers.

New York leads the country with 589,388 independent workers, Los Angeles is second with 429,675 freelancers, Miami is third with 270,599, Chicago placed fourth with 211,137, and Dallas rounds out the top five with 194,352.

The annual Freelancer Economic Impact Report was released by New York-based Fiverr International Ltd. based on data from millions of tax returns and Non-Employer Statistics compiled by the U.S. Census Bureau.

It was developed with market research firm Illuminas and estimates the size, growth, and earnings of the independent professional workforce in top markets from 2019 through 2024.

The data uncovers significant shifts in where and how America’s freelancers are working, with the fastest growing markets for the number of freelancers including Orlando (32 percent), Miami (32 percent), Nashville (24 percent), Las Vegas (22 percent), San Antonio (20 percent), and Dallas (20 percent). Revenues increased the most in Miami (71 percent) and Orlando (62 percent).

Defying their reputations as solely entertainment and tourism hubs where artists, musicians, and performers chase their dreams, freelancers in Las Vegas ($62,083), Nashville ($61,569), and Los Angeles ($61,303) had the highest average incomes, showing that freelancing can help make those dreams financially sustainable. Despite ranking 22nd in total number of freelancers, Nashville outearned much larger markets for creative services revenue, ranking third behind only Los Angeles and New York City.

Reversing declines seen in some tech hubs, such as San Francisco and San Jose, during the pandemic, all 30 markets experienced growth in independent workers in the past year. The surge aligns with other data showing that U.S. businesses have increased freelance hiring by 260 percent in recent years.

The U.S. now has an estimated 6.9 million independent professionals and nearly 4 million freelancers concentrated in the top 30 cities — an annual increase of 4.3 percent. The report also shows independent professionals in the U.S. are estimated to generate $319 billion in revenue, representing 1.1 percent of U.S. GDP, and $208 billion in just the top 30 markets.

“Freelancing has become one of the most powerful forces reshaping the American workforce,” says Michelle Baltrusitis, head of community at Fiverr. “People are no longer tied to a single company or city; they’re building flexible, fulfilling careers on their own terms. The future of work is already here, and it’s independent.”

The report categorized cities into nine groups based on their freelance economies, growth rates, and demographics. Three patterns emerged:

Sunbelt Professional Havens (Miami, Orlando, Tampa, Jacksonville, and Phoenix) experienced the fastest growth in the number of independent professionals and revenues over the past 5 years.

Lone Star Boomtowns (Dallas, Houston, and San Antonio) were the second-fastest-growing market group, based on the number of independent professionals, and the third fastest in revenue. These markets are also young, with higher percentages of their total population falling under the age of 35 compared to other markets, and more diverse.

Rising Tech Hubs (Austin, Denver, Atlanta, Charlotte, Raleigh, Richmond, and Salt Lake City) were the third-fastest-growing in independent workers and second-fastest in revenue, and may be the next tech hub for freelancers as the tech economy in general shifts from the large tech centers to smaller cities.

Additional findings from the report include:

  • Location-driven earnings gap: There was a 60 percent difference between the highest average earnings market ($62,083 in Las Vegas) and the lowest ($38,871 in Minneapolis), with independent professionals in the top 30 markets earning $52,002 on average, around $5,748 more than the overall U.S. average.
  • 5 million professional service freelancers (including those in legal, accounting, marketing, bookkeeping, management consulting, and business support) comprise more than half of independent workers (51 percent) and nearly half of the revenues (48 percent).
  • 8 million technical service freelancers (architecture, computers, data processing, design, engineering, computer/IT, and scientific services) make up 26 percent of workers and 36 percent of revenues.
  • 5 million creative services freelancers (artists, video producers, writers, performers, and sound professionals) represent 22 percent of independent workers nationally and 16 percent of revenues.

To view the full report, visit here.