Indonesia has recently announced that they are accepting digital nomads with open arms, allowing for tax-free earnings for those who choose to relocate for work as long as their earnings come from outside the country. Gen-Z are at the forefront of the digital nomad revolution, and as this cultural change occurs, it is expected that the total number of digital nomads in the world could double within just a few years.
The increase in remote work growth due to the pandemic saw the number of digital nomads with a traditional job increase from 6.3 million in 2020 to 10.2 million in 2021. This shows that the type of work these individuals chose to do was not the predominant factor of change, but rather the way in which they were allowed to work. In terms of what type of workers remote work impacted, the figures surrounding remote work in 2021 included:
- Independent remote workers increased by 15%
- 35% of digital nomads work for a company
- 28% are freelancers
- 18% are business owners
Studies show 44% of all nomads are aged between 26 and 41 years old. However, the number of younger people choosing this lifestyle is set to increase annually as Gen-Z continue to strive for a work-life balance that suits them.
Although digital nomads praise the lifestyle due to the numerous perks involved, figures suggest that remote workers in this capacity are actually working more hours, often over 40 per week. However, those working remote jobs praise the flexibility attached to the lifestyle, with studies revealing that productivity is 35-40% higher than on-site employees.
The Sectors Embracing Digital Nomads
Digital nomads can be found in a variety of fields, with employers across the board adapting to the rise in remote jobs as the preferred method of work. Predominantly, sectors that have embraced remote work more so than any other include:
- Information technology (19%)
- Creative services (10%)
- Education and training (9%)
- Consulting, coaching and research (8%)
- Sales, marketing and PR (8%)
- Finance and accounting (8%).
How Employers Can Adapt to Digital Nomads
Many employers may feel the change in working style is unprecedented, with traditional norms shifting from the in-house working style they are accustomed to.
Francesca, Co-founder of Sonic Jobscommented on the rise of remote work and how levels of employer flexibility must adapt:
“With a decline in the desire for office-based work, the next generation of workers are choosing an occupational style that no longer requires physical attendance. As many are opting for careers that allow for travel, remote work, and relocation, Gen-Z are embracing their chosen career paths, but a shift in traditional work values must take place. A survey involving 1000 employees revealed that 86% want to work somewhere other than the office at least once a week. Additionally, tax-free opportunities are at the forefront of the mind of Digital Nomads, with 95% of remote workers stating Indonesia was their destination of preference for remote work. With Google searches for remote jobs jumping 262% within a week this month, employers must focus on a wide range of potential options for their workers in order to adapt to their lifestyle while acknowledging that the same results are obtainable, home or away”