New study uncovers the freelance 'north-south divide'

As a southern-based company, Freelancer Accounting (http://www.freelanceraccounting.com) has accountants in Richmond, Guildford, Reading and various other areas in close vicinity to London. But have you ever wondered how the state of play differs between north and south based freelancers? Whichever part of the country or beyond you are based in, the results of a new study from the online freelancer marketplace PeoplePerHour may surprise you.

What was discovered by the research was that the north is actually outpacing the south when it comes to the freelance entrepreneurial boom, with the endeavours that people in cities like Manchester and Leeds set up also more likely to be creative ones compared to those in the south. The research encompassed some 400,000 self-employed workers, with Manchester and Liverpool topping the list of those cities experiencing the greatest rise during the last 12 months. It may shock many of the clients of our contractor accountants, in fact, that only one of the top 10 hot spots was outside northern England and Scotland.

Manchester's top ranking is thanks to a 163 per cent rise in its self-employed population over the last year, only narrowly ahead of the 162 per cent achieved by Liverpool. Plenty of small business activity in Yorkshire was also found, with Sheffield seeing a 159 per cent increase, Bradford a 143 per cent rise and Halifax a 122 per cent one. Other cities to see increases well in excess of 100 per cent included York, Darlington, Newcastle, Leeds, Dundee and Aberdeen.

Such a strong showing for northern cities can, of course, be attributed in many ways to a tougher labour market, as many of these areas are traditionally more dependent on public sector jobs, and have therefore disproportionately suffered the effects of government cuts amid the continuing economic slowdown. However, it also shows how proactive many northerners have become in response to such challenges.

We can't pretend that the south was exactly a slouch in comparison, with London's rise of 'just' 101 per cent being balanced out in part by the greater number of people living there. Nonetheless, the difference is marked, with PeoplePerHour's Xenios Thrasyvoulou stating that the results showed a British labour market "going through a fundamental change." He added that "traditional employment is unlikely to return to pre-recession levels, as increasingly businesses want a more flexible workforce" - good news for many of our contractor accountancy clients.

It's fascinating, too, to see the variations in what precisely freelancers are doing in different parts of the country. While services like legal support and general administration are most common among the southern-based users of accountants in London, more creative services - like writing, design and illustration - are more widespread among freelancers in the north. If there's a definite conclusion that can be drawn, it's that opportunities abound for self-employed workers across the country, as our established team and clients here at Freelancer Accounting (http://www.freelanceraccounting.com) have long known.

Editor’s Note: Freelancer Accounting (http://www.freelanceraccounting.com) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.