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

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

by LLB staff reporter
29th Feb 24 9:08 am

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 key reasons for moving away from full-time employment nearly a third (29%) “less chance of being laid off or replaced by AI.”

Nearly 1 in 5 (18%) respondents cite self-employed and freelance careers as more stable than full time employment, whilst 17% believe that UK companies have no loyalty to employees

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.

The key drivers are that almost a third (31%) say they are worried about the cost of living and more than one in 10 (12%) have already been laid off or are afraid they will be.

“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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