How Oil Prices are affecting Freelancers business?

How Oil Prices are affecting Freelancers business?
16 Feb 2016

Yes you heard it correct, the world wide slump of oil prices from $120 per barrel to $28 is effecting many global economies including KSA, USA and other oil producing countries. The industry related to oil and gas is also under pressure world wide so the employers around the globe. In Canada only the gas related firms have started the job cut and people are getting fired and being forced to work 50% less hours than normal days. The CAD is under immense pressure and the 1 Canadian Dollar equals 0.72 US Dollar as per 16 February 2016 data. The (loonie) dollar has declined its value almost 13% in last six months. The oil price and CAD value is linked very closely to each other and you can view that in given graph:

Now, coming back to the topic, the freelance market is divided around the globe but almost 80% of buyers belongs to USA and Canada alone. The buyers from Canada are not comfortable to work with freelancing websites like upwork, guru or freelancers.com because of the exchange rate. I’ve had cancelled almost 10 contracts in last 15 days with buyers from Canada due to the CAD conversion rates. All these freelancing websites deals in USD and buyers from Canada are not comfortable to pay the conversion rates so almost 20% of freelancer market size is vanish from these sites (hopefully temporarily)

So the oil price is playing big games world wide and the after shocks can be felt in freelance market places. Let us hope this trend will change soon.

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Tanveer Ahmad

I am a freelance graphic designer & passionate reader of entrepreneurship magazines.

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