As the year comes to a close and the holiday season approaches, many workers find themselves mentally checking out until the new year. It’s a time when people reflect on the past year and set intentions for the year ahead. And one trend that is increasingly “in” for the workforce is freelancing. According to the latest study by the Upwork Research Institute, freelancing is on the rise, with 64 million Americans freelancing this year—an all-time high since Upwork began tracking such data nearly a decade ago. This trend represents 38% of America’s workforce and contributes $1.27 trillion in annual earnings to the economy.
The growth of freelancing has been steady over the years, with 1 million more Americans joining the freelance workforce each year since 2014. This shift towards freelancing is driven by professionals seeking alternatives to the traditional 9-to-5 work model. Margaret Lilani, VP of talent solutions at Upwork, notes that freelancers are finding greater flexibility, autonomy, and earning power in freelancing compared to traditional employment.
One of the driving factors behind the rise of freelancing is the desire for flexibility and autonomy in one’s work. With the increase in return to office mandates, many employees are looking for ways to work on their terms, leading them to explore freelancing opportunities. Additionally, in an economy that feels strained, especially for underpaid younger individuals during an age of inflation, many Gen Zers and millennials are turning to the gig economy to supplement their income and achieve financial stability.
Younger generations, in particular, are leading the way when it comes to freelance work. The study found that 52% of Gen Zers and 44% of millennials freelanced this year. Millennials, in particular, have faced challenges in building wealth due to two recessions and staggering student debt. For Gen Zers, the uncertainty of the job market and the wave of layoffs this year have made them wary of traditional corporate employment, leading them to explore freelancing as a source of income and stability.
Despite the challenges of navigating today’s economic landscape, many young adults are optimistic about the future of freelancing. The study found that 85% of freelancers believe that the best days are ahead for freelancing, citing potential career growth, wage increases, and new opportunities. Whether performing knowledge or skilled work or entering the creative content industry, freelancers are forging their own paths and creating new opportunities outside of the traditional corporate world.
In conclusion, freelancing is on the rise, with more Americans turning to freelance work for greater flexibility, autonomy, and earning potential. Younger generations, in particular, are leading the way in embracing freelancing as a viable career option. Despite the challenges they face, freelancers are optimistic about the future and the opportunities that freelancing can provide. As the workforce continues to evolve, freelancing is becoming an increasingly popular choice for those seeking a more flexible and fulfilling career path.
