Well, all the agencies I worked with in the past are still in business, and hundreds of such companies come up in Google when I search for 'web design agency in

Well, all the agencies I worked with in the past are still in business, and hundreds of such companies come up in Google when I search for 'web design agency in [place name]', so there definitely must still be at least some money in it. Either way, I think there's definitely still interest there. Yes, you can make some types of basic sites through stuff like SquareSpace and Wix. But a lot of business owners don't want to do things themselves. They're not design like, often not too tech savvy and just don't feel being the one responsible for their entire website. For them, they'll go to an agency or development company for the same reason you may go to a restaurant or cafe; because they'd rather someone who knows more about the topic build in than play designer/developer themself. They also often like having support in a place that's easier to reach. If the company who built the site is local, they can phone them, send an email without worrying about time zones or pop down the office when something breaks rather than having to deal with a multinational corporation via support tickets or live chat. There's also (as said) the many types of sites that are a bit too complex than can be done via a site builder but too simple to require an in house development team; those are often things these small web design/dev businesses take care of too. So yeah, overall the market is certainly a bit smaller than it used to be, but it's still there, either because people want a professional to do the job rather than doing it themselves or because their needs are a bit more complex than can be achieved with a site builder.