PALO ALTO, Calif., April 23, 2025 (GLOBE NEWSWIRE) — Upwork Inc. (Nasdaq: UPWK), the leading global work marketplace connecting businesses with independent talent, has launched its inaugural Future Workforce Index. This comprehensive report analyzes the emergence of skilled freelancers in knowledge work and examines their substantial impact on the economic landscape, workforce dynamics, and business innovation. The findings signal a significant shift in work methodologies, with over 28% of U.S. knowledge workers now engaged in freelancing, cumulatively earning $1.5 trillion in 2024.

The Rise of Freelancers in an AI-Driven Economy

As organizations rapidly transition toward AI-enhanced and flexible work models, freelancers are surpassing full-time employees in their adoption of AI technologies and expertise in high-demand job categories. In 2024, the gross services volume for AI-related freelance work on Upwork experienced a remarkable 60% year-over-year growth, highlighting the increasing demand for AI-competent freelancers. Presently, more than 12,000 AI specialists on Upwork in the U.S. possess skills in designing, developing, deploying, and training AI systems. Furthermore, over half of freelancers on the platform are actively upskilling in technical and AI-specific skills, enabling them to assist clients in harnessing AI for their business needs.

Key Skills for Future-Ready Freelancers

Freelancers are particularly adept in critical competencies necessary to thrive in partnership with AI, including problem-solving, critical thinking, and adaptability. An impressive 71% of freelancers on Upwork report high proficiency in problem-solving, compared to just 49% of freelancers in general. Moreover, they outperform in critical thinking (67% vs. 43%) and adaptability (53% vs. 41%), emphasizing their position as proactive, future-ready talent in the evolving workforce.

The Shift from Traditional Employment

Kelly Monahan, managing director of the Upwork Research Institute, commented, “The traditional 9-to-5 work model is losing its relevance as skilled talent opts for flexibility, financial independence, and purposeful employment over outdated corporate frameworks. Companies that resist adapting to new hiring models risk stagnation, while those leveraging independent professionals are experiencing substantial growth and innovation.”

Economic Impact of Skilled Freelancers

Among the critical insights from the Future Workforce Index report, skilled freelancers engaged in knowledge work are adding significant value to the U.S. economy, earning a total of $1.5 trillion in 2024. More than one in four (28%) knowledge workers in the U.S. freelance, which equates to over 20 million individuals. Notably, those relying solely on freelance income report a median earning of $85,000, which is higher than their full-time employee peers’ median income of $80,000.

Freelance Careers: A More Intentional Path

The freelance landscape is evolving into a more sophisticated and intentional career trajectory, particularly among highly educated individuals. An impressive 37% of skilled freelancers hold postgraduate degrees, contrasted with just 20% of full-time employees. As advanced skills become increasingly prominent in the freelance workforce, many are exploring varied flexible work models, such as Freelance Business Owner, Agency Freelancer, Managed Services Freelancer, and AI-Enabled Freelancer.

Future Outlook for Skilled Freelancers and Businesses

The future of skilled knowledge work is firmly rooted in freelancing, with over one-third (36%) of full-time employees considering a shift to freelance work for improved opportunities. Only 10% of freelancers express a desire to return to conventional employment. Gen Z is leading this transition, with 53% of tech-savvy Gen Z workers now freelancing, anticipating to represent 30% of the U.S. workforce by 2030. Optimism prevails, as 84% of freelancers and 77% of full-time employees share the belief that the best days of freelancing are yet to come.

“Skilled knowledge freelancers embody the intersection of innovation, AI, and workforce transformation,” stated Gabby Burlacu, senior research manager of Upwork Research Institute. “Their rise is reshaping how work is structured and how businesses operate. These freelancers, flourishing on Upwork, are demonstrating their adaptability, AI proficiency, and outcome-oriented approach, making them invaluable partners for companies striving for innovation and growth.”

To delve deeper into the findings of the Future Workforce Index, visit: Future Workforce Index 2025.

Methodology and Research Insights

The Upwork Research Institute conducted a survey involving 3,000 U.S.-based skilled knowledge workers from December 2024 to February 2025 to analyze prevailing workforce trends. Participants were strategically selected based on their roles, earning levels, and self-reported freelance activities over the past year. The margin of error is ±1.8% at a 95% confidence level.

Earnings were estimated using BLS data pertaining to management, professional, and related occupations, which represents 42% of the U.S. workforce (approximately 71.5 million workers). A parallel survey conducted with 502 C-level executives from publicly traded companies also provided essential insights into hiring trends and workforce strategies.

About Upwork

Upwork is the world’s premier work marketplace, connecting businesses to highly skilled independent talent across the globe. From startups to Fortune 100 companies, organizations utilize Upwork’s trusted platform to access expert talent, leverage AI-enhanced work solutions, and achieve meaningful business outcomes. With access to over 10,000 skills across various fields, including AI & machine learning, software development, sales & marketing, customer support, finance & accounting, and more, Upwork enables companies of any size to scale, innovate, and create agile teams. The platform has facilitated over $25 billion in economic opportunities for talent worldwide. Learn more at upwork.com and follow Upwork on social media for updates.

Contact:
Christine Lee
press@upwork.com

The Rise of Freelancing in the Knowledge Workforce

PALO ALTO, Calif., April 23, 2025—In a transformative shift towards freelance work, Upwork Inc. has released its first Future Workforce Index report, highlighting the significant growth of skilled freelancers in the knowledge sector. As businesses increasingly seek flexible and innovative talent, the report reveals that over 28% of knowledge workers in the U.S. are now engaged in freelancing, collectively earning a remarkable $1.5 trillion in 2024.

Freelancers Outpace Traditional Employment

As the corporate landscape evolves with the integration of AI and flexible working models, freelancers are leading the charge in adopting and mastering technology-driven skills. In 2024, Upwork witnessed a staggering 60% year-over-year growth in the gross services volume for AI-related freelance work. This surge signifies an increasing demand for professionals equipped with the necessary skills to navigate the AI landscape.

Key Skills for the Future Workforce

Independent workers are not only embracing AI but also excelling in essential skills that complement technology. Freelancers demonstrate exceptional proficiency in problem-solving, critical thinking, and adaptability, with 71% reporting strong problem-solving skills compared to only 49% of freelancers overall. This trend positions freelancers as highly valuable contributors to future workplaces dominated by AI.

The Shift from Traditional Employment Models

“The conventional 9-to-5 model is rapidly becoming obsolete as skilled professionals prioritize flexibility, control, and meaningful work,” explains Kelly Monahan, managing director of the Upwork Research Institute. Companies that resist these changes risk stagnation, while those that incorporate independent talent drive growth and innovation. The shift towards a freelance-dominated workforce is not just on the horizon; it is already unfolding.

Freelancing as a Viable Career Path

The study highlights the sophistication of freelancing as a career choice, particularly among educated professionals. With 37% holding postgraduate degrees—significantly higher than their full-time counterparts—freelancers are finding diverse paths within the gig economy. Career labels such as Freelance Business Owner and AI-Enabled Freelancer are emerging, showcasing an intentional approach to freelance work.

Advantage of Freelancers Over Full-Time Employees

Freelancers consistently outperform traditional employees in various aspects, especially in tech adoption and continuous learning. Notably, 54% of freelancers claim advanced proficiency in AI, compared to just 38% of full-time employees. Furthermore, freelancers have shown superior skills in communication, critical thinking, and problem-solving, making them indispensable in businesses seeking to integrate AI effectively.

The Future of Work is Freelancing

The momentum for freelancing is accelerating as over one-third of full-time employees contemplate switching to freelance roles for enhanced opportunities. Particularly among Gen Z, who currently represent 53% of skilled freelancers, the trend signals a generational shift that will reshape the labor market. As optimism about the future grows, 84% of freelancers believe in a prosperous future for freelancing.

Conclusion

The Future Workforce Index underscores the vital role of freelancers in driving innovation, adoption of AI, and transformation of workplace dynamics. As skilled independent workers continue to redefine how work is conducted, they emerge as key partners for businesses aiming to thrive in a rapidly changing world. For more insights from the Future Workforce Index, visit Upwork’s research page.

Contact Us

For further inquiries, please contact Christine Lee at press@upwork.com.