Freelance economy: the impact of self-employment on the labour market

Abstract

The article provides a comprehensive analysis of the freelance economy and assesses the impact of self-employment on the modern labour market. It examines the theoretical foundations of the concepts of «freelancing» and «self-employment», identifies their similarities and differences, and traces the historical evolution of freelancing – from isolated forms of individual employment to a large-scale sector of the 21st-century economy. The study investigates the dynamics of self-employment expansion in Russia and worldwide, identifies key drivers of sector growth (digitalisation, globalisation, changing labour values), and analyses the sectoral and demographic distribution of freelancers. Both positive and negative effects of self-employment on workers, employers, and the economy as a whole are examined – ranging from increased labour market flexibility and reduced unemployment to challenges related to social vulnerability and income instability. Particular attention is paid to issues of government regulation of self-employment, including the introduction of the Professional Income Tax (PIT) regime in Russia, the development of digital accounting tools («My Tax»), and the participation of freelancers in public procurement. The prospects for the development of the freelance economy are evaluated in the context of technological progress, the spread of artificial intelligence, and the transformation of demand for professional skills. Based on the findings, the article formulates recommendations for governments, businesses, and self-employed individuals on adapting to the growth of the freelance sector, and outlines directions for further research. The results can be used in shaping employment policies, optimising corporate HR strategies, and planning professional trajectories for freelancers.