Freelance Tech Contractor Rates Fall Due to Structural Market Shifts

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Freelance tech contractors are experiencing significant rate reductions, with daily rates falling from levels like £700 to £550. Data indicates companies now hire contractors as a last resort, offering shorter contracts and lower pay. This shift is driven by higher interest rates, reduced venture capital funding, and increased global remote hiring expanding the talent pool. Analysts argue the problem stems from contractors historically pricing their time rather than their value, leaving them vulnerable when market demand cooled.

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