Britain's freelancer and contracting industry continues to play a significant role in the UK economy. As of August to October 2024, approximately 4.38 million self-employed professionals were working in the UK. This workforce includes a diverse mix of full-time and part-time self-employed individuals, serving various industries ranging from technology and finance to healthcare and creative sectors
The number of self-employed professionals in the UK has seen fluctuations in recent years. In early 2020, the total number of self-employed professionals peaked at over 5 million. However, by 2024, this number had decreased to approximately 4.38 million, indicating a decline influenced by factors such as the COVID-19 pandemic and economic changes.
In the period from August to October 2024, the UK workforce consisted of:
This demonstrates an increase in employee numbers compared to previous years. However, self-employment remains around 700,000 below pre-pandemic levels. This decline has been influenced by changes in government regulations, the cost-of-living crisis, and shifts in work preferences.
Notably, there has been a rise in full-time employment, while part-time roles have decreased. This trend suggests a shift towards stability, as many professionals prefer predictable incomes amidst economic uncertainty.
The private sector has faced some workforce reductions, while public sector employment has seen modest growth. This indicates evolving opportunities for freelancers in government projects, healthcare, and infrastructure development.
Freelancers and contractors play a significant role in driving the UK economy. While precise figures for 2024 are still emerging, the overall contribution of self-employed professionals to the UK economy is estimated to be in the range of £150-£200 billion annually.
The UK contracting market is evolving, with several industries presenting lucrative opportunities:
The UK's IT contracting landscape is rapidly evolving, with certain skills becoming increasingly sought after. For professionals aiming to stay competitive, focusing on the following areas is essential:
1. Artificial Intelligence (AI) and Machine Learning (ML) Specialists
AI and ML are revolutionising industries by enabling smarter decision-making and process automation. The demand for specialists in these fields is soaring across sectors like finance, healthcare, and retail. Current rates for AI/ML specialists range from £600–£850 per day, with forecasts suggesting an increase to £700–£950 per day by 2025.
2. Cybersecurity Experts
With the rise of hybrid work models and stringent regulations, organisations are prioritising security. There's a growing need for cybersecurity contractors who can mitigate risks and ensure compliance. Current rates are between £500–£750 per day, expected to rise to £600–£850 per day by 2025.
3. Cloud Computing Specialists
As businesses increasingly migrate to cloud platforms like AWS, Azure, and Google Cloud, there's a strong demand for cloud architects and migration experts. Current rates are £550–£800 per day, with forecasts indicating an increase to £650–£900 per day by 2025.
4. Data Engineers and Analysts
Professionals skilled in building data pipelines and real-time analytics are essential for data-driven decision-making. Current rates range from £500–£750 per day, with an expected rise to £600–£850 per day by 2025.
5. Mobile Development Specialists
With over half of global website traffic coming from mobile devices, expertise in mobile optimisation and app development is highly valued. Contractors with skills in this area are in high demand.
6. User Experience (UX) Designers
UX designers who can create seamless and user-friendly interfaces are crucial as businesses focus on enhancing customer experiences. Their unique blend of technical and behavioural understanding makes them indispensable.
Focusing on these skills can significantly enhance an IT contractor's prospects in the UK's dynamic tech industry.
Looking ahead, self-employment is expected to rise in the following sectors:
The UK remains a hotspot for independent professionals, with certain regions leading the way in self-employment opportunities:
While London and the South East remain dominant, we are seeing growing freelance hubs in regional cities such as Manchester, Edinburgh, and Bristol. These locations offer lower living costs while still providing access to high-paying contracts.
Did you know?
The UK’s freelance and contracting market is constantly evolving, with strong opportunities in technology, construction, healthcare, and creative industries. While challenges such as economic fluctuations and IR35 regulations persist, professionals who adapt to emerging trends and develop in-demand skills will continue to thrive in the self-employment landscape.
Whether you are a seasoned contractor or considering freelancing for the first time, the UK remains a fantastic place to build a successful independent career.