Layoffs and AI fears push UK’s ‘Generation Z’ towards self made careers and side hustles

• Nearly 7 in 10 (69%) of 16 to 26 year olds are planning to go freelance, self employed or start a side hustle, 59% in the next 12 months 
• Generation Z cite self-employed and freelance careers as more stable than full time employment, with 'less chance of being replaced by AI or laid off' 

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LONDON – February 28, 2024 - Amid continued job instability in 2024, new UK data reveals that the majority (69%) of 16-26 year olds are considering or already have careers in freelancing, self employment and side hustles over full-time employment. According to a study of 3,016 UK-based 16-26 year olds conducted in late January 2024, of those considering a freelance or self-employed career, 59% plan to do so in the next year, including 18% that plan to do so in the next two months. 60% of respondents are already in full or part time employment, suggesting there could be a mass exodus away from traditional employment. A further 25% are currently students, suggesting that they will enter the workforce as self-employed and freelancers, shunning the traditional career path entirely. 

The survey conducted by Fiverr (NYSE: FVRR) reveals that ‘Generation Z’ cite multiple reasons for considering self-made careers, from building new skills to being their own boss. Yet, findings also suggest their desire to take back control amidst a job environment that is unpredictable and fast-evolving. Amongst tip  nearly 1 in 5 (18%) respondents cite self-employed and freelance careers as more stable than full time employment, with 14% selecting there is ‘less chance to be replaced by AI or laid off’ (15%).

Generation Z strive to take back control of their careers

The study, which is in its second year, highlights how layoffs, flexibility, and AI are drastically shaping the way Generation Z work and think about their careers. According to the findings, 74% of those considering a freelance or self-employed career are thinking more about this compared to this time last year. Many factors for considering freelance or self-employed careers in 2023 also remain the same in 2024. Flexible working hours, ‘being my own boss’ and ‘increasing my income’ were key factors in 2023 and 2024. 

However this year, the reasons for choosing this career path are much more likely to be driven by the state of the full-time job market, with key drivers as follows:

• Nearly a third (31%) say they are worried about the cost of living 
• Over 1 in 10 (12%) have already been laid off or are afraid they will be
• Nearly 1 in 5 (18%) believe freelancing or self employment is now more stable than a full time job
• 17% believe full time work is no longer attractive due to lack of company loyalty

“The youngest members of today’s workforce, Gen-Zers, have faced nothing but hurdles – a global pandemic and unprecedented development in technology. Now, in the face of layoffs and the implementation of AI across the corporate world, Gen Z workers are relying on themselves for the stability that they need to pursue their career ambitions by choosing freelancing and self employment,” said Gali Arnon, Fiverr’s Chief Business Officer. “Not only does freelancing and self employment offer a stable path to be their own boss or to own their own business, but it also allows for Gen Z to have total autonomy over their own lives.” 

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Several other themes from the data include: 

Remote work less important to Generation Z than last year

• Only 22% of 16-26 year olds surveyed say a remote working policy would influence their job decisions 
• This figure is decreasing, last year 24% felt this way - also a low percentage
• Flexible hours are more important, with 39% saying this will influence their job decisions and 1 in 4 also saying flexible working structures are a factor in choosing to be self employed or freelance

Generation Z are divided on the role of university degree 

• Only 35% believe a university degree is required for a successful and fulfilling career 
• A further 36% believe that a successful and fulfilling career is achievable without a degree or with other formal qualifications (other than a degree) e.g. an apprenticeship  

Comfort and financial security remain the top priority for Gen-Zers.

• 45% of Generation Z respondents desire to be financially comfortable as part of their larger career ambition; 18% want to retire early. 
• Around a quarter (24%) want to own their own business while 12% want to freelance for their entire careers. 
• Nearly 29% of respondents want to travel for work and work from wherever they want.