Online business location PeopleHour.com reports large increase in figures for companies outsourcing digital freelancers. The site comes up with this report after covering public sector cutbacks.

Online business location PeopleHour.com reports large increase in figures for companies outsourcing digital freelancers. The site comes up with this report after covering public sector cutbacks.

Despite the capability of private sectors to create about 77, 000 jobs during the fourth quarter of last year, the severe cuts made by the government for public services drove a 2.53 million rise in unemployment.

The data revealed by PeopleHour.com showed that freelancers are used by public sectors in response to the government’s cutbacks.

The digital freelancer figures are specifically catchy as they depict the dramatic increase of digital projects in public sectors that invoiced on PeopleHour.com. The figures show an increase of seven folds compared to figures reported in 2010.

In total, People Hour.com analyzed an increase of 315% in postings for digital jobs in all sectors that include search engine optimization, database development and web design.

Xenios Thrasyvoulou, founder and chief executive officer of PeopleHour.com, stated the realization of the whole public sector on the cost-saving essentials of outsourcing specifically to freelancers.

Expressing his view on the response of both the private and public sectors to the economic instability in UK, Thrasyvoulou said, “When the recession hit, the private sector was quick to respond to the new economic reality by shedding permanent staff and engaging freelancers instead. Thousands of UK businesses quickly realized this was the best way to stay lean and remain solvent in the face of testing economic conditions. The public sector had no such imperative and continued employing and retaining fulltime staff. However, since the government started slashing budgets, the public sector has been forced to find a more cost effective and efficient approach to human resources.

He added his analysis by saying, “It’s clear from our figures that the public sector has learnt a lot from the private sector about the benefits of using freelancers.”