Freelance contractor Upwork had its best year of growth as a public company last year, and CEO Hayden Brown sees no signs of momentum that set in before the coronavirus pandemic slowed as the economy resumed.
Younger workers, marked by a labor market that has suffered two recessions in just over a decade, are increasingly seeking more control and flexibility in their careers. The trends have only been fueled by the remote working world, giving companies the opportunity to adapt and tap into a global talent pool of independent professionals, she told CNBC on Wednesday.
“The paradigm has completely changed,” Brown said in Mad Money, that recessions in 2007 and 2020 dampened worker confidence and loyalty. “We’ve seen this again in years. This isn’t a new trend, but it’s certainly accelerated today with more than half of the Gen Z freelance and 59 million American freelance professionals.”
Gen Z, short for Generation Z, consists of young people who are currently in adulthood or who are entering adulthood and are now moving through a pandemic-shaped economy. The age group is also known as the zoomer.
Millennials, its older counterpart, came of age during the Great Recession.
Upwork, a job market that went public in 2018, is helping companies leverage the gig economy for both short-term and long-term projects. The independent economy has disrupted various industries, giving rise to household names like Uber and DoorDash.
Brown said that over 70% of the freelancers on the platform have college degrees and many earn high wages.
Unlike ride-hail apps like Uber, which saw pandemic sales down 21% after years of multi-digit growth, the small-cap Upwork business accelerated in 2020. Revenue for the Santa Clara, California-based company last rose 24% year-on-year to $ 373.63 million.
Stocks are up 522% over the past 12 months, hitting a 52-week high on Wednesday before closing at $ 53.36.
“This is a long-term trend in the workforce, and companies recognize that if they want to work with the best talent, they must tap into the independent economy,” said Brown. “You can’t limit yourself to full-time employees.”
Upwork expects business growth of at least 23% in 2021. The $ 6.5 billion company announced a full year revenue forecast of $ 460 million to $ 470 million.
