Freelancing insight: Is the Philippines losing skilled workers?

Have you ever tried opening your social media account and seen the success stories of these people who transitioned to freelancing and how it changed their lives forever? It’s becoming a familiar one. Note that some of these people aren’t even “ordinary” as some are corporate employees and even teachers. What was once a side hustle became a full-time employment.

However, what is freelancing, and why are many Filipinos eager to join the industry?

Freelancing is a client-to-independent contractor relationship where the freelancer (a seller of certain services) sells them to another party (a client, mostly from abroad). To understand simply, picture somebody you know who’s working for another country while only staying at home.

As per findings from GCash and Payoneer, approximately 1.5 million Filipinos have enrolled on global online platforms to offer freelance services. As more and more Filipinos discover freelancing and how it can uplift their standard of living financially, that number is expected to grow exponentially.

Why Filipinos are eager to join the freelance industry

The reason why many Filipinos are eager to join the freelance industry can be attributed to the following: higher pay, the convenience of working from home, and career growth.

As an ordinary Filipino employee, who wouldn’t love that? Let me explain further.

Higher pay

Freelancing offers higher pay than being a traditional worker in the country. It’s above the minimum wage. In the country, you have to be a college graduate and possess over five years of experience just to earn around P40,000 to P60,000, or $715 to $1,075 monthly.

Even entry-level jobs pay around P25,000 to P30,000.

Another thing is that you can ditch those high qualifications set by the local companies you see whenever you apply for a job. Even a cashier, a waiter, or a bagger might sometimes need to be a college graduate.

However, freelancing doesn’t need such things. As long as you have the right skills and portfolio to show your prospects, you’re good to go.

The convenience of working from home

Although working from home and living like a digital nomad already existed pre-pandemic, it did accelerate during those crises when working in the office seemed like an impossible feat.

Freelancing gives you the convenience of working from home or anywhere, such as cafes and coworking spaces. If you’re traveling, you can also bring your work with you. All you need is a laptop and a stable internet connection.

Moreover, freelancing is also perfect for mothers with children to care for. Imagine earning money while being able to take care of your family—that’s everybody’s dream.

Career growth

This is not to say that there’s no career growth working for the country’s local companies; rather, it just seems faster in the freelance industry. Factors such as being able to control your time, freely upskilling to high-paying skills, and working with several businesses abroad all contribute to career growth.

For the three reasons mentioned above, freelancing is not an absolute solution to your problem. With the growing competitive market and many Filipinos transitioning, the barrier to entry is becoming tighter. Additionally, it’s not only about Filipinos, as it’s a worldwide competition. The truth is that you can’t just quit your job one day and decide to pursue freelancing. That’s not how it works, unfortunately.

However, with the right mentor and resources, landing your very first client is quicker. At present, there are many mentors you can follow on social media that talk about freelancing and offer tips to newbies. It’s just a matter of researching and putting in the work.

Is the Philippines at risk of losing its skilled workers?

As I said, freelancing is not an absolute solution to escape your toxic boss, a no-growth career, or a small-paying job. It has risks and disadvantages, too. However, the benefits seem to always outweigh the risks. Otherwise, we won’t see many skilled workers, such as video editors, computer programmers, designers, and corporate executives, quitting their jobs to work for the benefit of another country.

According to the Philippine Institute for Development Studies, between 2019 and 2020, the Philippines experienced a remarkable 208% increase in freelance earnings, marking the highest growth rate in Asia. This substantial jump contrasts with the 35% growth observed from 2018 to 2019, when the Philippines held the sixth position in the region.

The data shows that increasingly skilled Filipinos are eager to shift to freelancing. With each success story posted on Facebook, another one or five employees have already contemplated quitting their jobs and join the movement.

The bottom line

With high inflation and the cost of living, many Filipino workers aim to work abroad to escape poverty. What’s even sad is that even students in the healthcare and education industries are already dreaming of leaving the country as soon as they graduate. However, with freelancing, it seems that the country’s current workforce may be tempted to go down this path.