Blended workforces creating high quality jobs in the project economy – new report

Blended workforces creating high quality jobs in the project economy - new report

Posted on: 02 April 2025

Blended workforces are creating high quality jobs in the project economy, according to the 2025 Project Economy report published today by Trinity Business School.

The research reveals the economic importance of blended workforces, where businesses combine employees with high-skilled independent contractors to drive agility, innovation, and growth.

Now in its fifth year the 2025 Ireland's Project Economy survey conducted in association with Contracting PLUS, involved a survey of over 1,500 Irish high-skilled independent professionals (also known as professional contractors, freelancers and solo-self employed workers) as well as companies who engage contractors and recruitment agencies who help place them.

This blended workforce model enables businesses to tap into a reservoir of talent beyond employees and minimise the risk associated with innovation and growth, according to the report authors Professor Andrew Burke, Chair of Business Studies and Professor Na Fu, Chair of Responsible Leadership, Trinity Business School.

The 2025 Ireland's Project Economy report will be launched this afternoon [April 2nd] at a Self-Employed Sessions webinar, hosted by Contracting PLUS, where the authors will discuss and share key findings and insights from the latest research.

Key Findings:

• Blended workforces are at the core of economic performance in the project economy - Project-based organisations using a blend of high-skilled independent contractors and employees are driving economic growth, innovation, and agility in businesses across Ireland.
• High skilled freelancer earnings declined by 7% - Average annual earnings have fallen from €127,164 to €117,978 (7%). Average day rates have declined by 3% from €571 to €552. Part of this reduction is due to the higher proportion of younger freelancers in the survey compared to last year. These less experienced workers don't earn as much as older independent contractors who have more established track records and reputations. But this does not account for the full effect and high skilled freelancers are now spending an extra 3 days (33% increase) searching for work between contracts, indicating that the balance of bargaining power driven by supply v demand in the high skilled freelance labour market, has moved in favour of buyers.
• Independent professionals earn more than equivalent employees - Despite a decline in average earnings this year, contractors in the project economy still earn 1.6 times the weighted average wage of equivalent employees and maintain high job satisfaction levels.
• Women are benefiting more from high skilled contracting - Female contractors now earn higher average daily rates than men for the first time, the gender pay gap reduces every year since the start of the study in 2021 and now stands at just 3.6%.
• Older workers are highly valued - While 60+ year old workers in traditional employment are usually past their earnings peak and looking at retirement, equivalent workers in the project economy are earning the highest average day rates and annual earnings across all age groups. This incentivises them to stay in the work force longer as experience and expertise are highly valued.
• Growth in younger independent contractors - There is a significant rise in the proportion of young freelancers in the latest survey, with 36% of contractors now under 40, up from 28% in 2024. This demonstrates contracting's growing appeal to younger professionals.

Professor Andrew Burke, Chair of Business Studies, Trinity Business School commented:

"Businesses that organise in this manner create both employee and high skilled freelancer jobs with both forms of labour working in tandem with one another. High skilled freelancer work may only appeal to workers with an entrepreneurial mindset and a risk bearing disposition, but it does appear to be well compensated with a 61% premium on earnings over and above that secured by equivalent employees. Notably, over three quarters (78%) of high skilled independent contractors choose to become self-employed rather than doing so out of necessity.

"In terms of job satisfaction, independent contractors are more satisfied with their work than employees. This is particularly true amongst women who value the extra flexibility around work life balance and who over the last five years have nearly closed the gender pay gap - and this year earned higher day rates than men.

"In the high skilled labour market, the project economy is accelerating further ahead of the gig economy. The project economy workforce is now seven times larger and workers earn 32 per cent more than equivalent high skilled gig economy freelancers.

"While the Irish business landscape involves firms using either employee-only or blended workforces government policy does not accommodate this duality tending to favour the employee-only model. This is depriving workers of the career choice of being a high skilled independent contractor and is also hampering the performance of entrepreneurial SMEs and corporations who use blended workforces to enhance their performance - materialising in innovation, business growth and job creation."

Professor Na Fu, Chair of Responsible Leadership, Trinity College Dublin added:

"Contracting is reshaping the workforce, creating a fairer, more flexible, and more rewarding way to work. Our research shows that contract-based pay structures reduce discrimination-leading to a shrinking gender pay gap and greater recognition of experience and expertise.

"The project economy's emphasis on high-skilled workers has also led to significant shifts in gender dynamics. For the first time, female contractors earn higher average daily rates than males, this combined with advantages of autonomy and flexibility is attracting more women to the sector, with 81% of women voluntarily choosing self-employment. Women now represent 27% of professional contractors. Also notable is that older workers are highly valued."

Jimmy Sheehan, Managing Director, Contracting PLUS concluded:

"Independent professionals are thriving because contracting delivers financial independence, flexibility, and career satisfaction. This report proves that high-skilled self-employment needs to be better understood and promoted as a viable and strategic way to work which benefits both the individual and the economy as a whole.

"The findings emphasise the need for policies to facilitate blended workforces to foster economic growth and high-quality job creation. As the project economy continues to outpace the gig economy in both size and economic impact, it is crucial for policymakers and businesses to recognise its significance in shaping Ireland's future workforce."

Read the full report here on the Trinity Business School website.

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