Upwork, the global marketplace that connects businesses in need of capable and reliable Freelance professionals and talented independent workers who are looking to generate billable hours, has just released the results of “Freelance Forward: 2023,” the 10th annual comprehensive study of the U.S. independent workforce. The study found that 64 million Americans participated in Freelance work during the past year, adding 4 million more self-employed workers over 2022. Freelance workers now comprise 38% of the nation’s workforce and contributed nearly $1.27 trillion to the U.S. economy in 2023.

Highly skilled professionals

Most Freelancers perform highly skilled professional work. Nearly half (47%) work in the knowledge economy and provide B2B services such as computer programming, marketing, IT, graphic arts and business consulting. Another 23% of Freelancers create influencer and other marketing content that fuels livestreams, social media videos and images, blogs and newsletters. 

Freelancers are also at the forefront of embracing new technologies. When asked about generative Artificial Intelligence use in the past three months, Freelancers were 2.2 times more than traditionally employed workers to say that they frequently use generative AI tools. In total, 20%, approximately 12.8 million Freelancers, use generative AI tools regularly (multiple times per week), compared to just 9% of traditionally employed professionals. When asked the functions for which Freelancers use generative AI, research (46%), brainstorming and ideation (35%), translation (33%), proposal writing (32%) and coding (28%) ranked at the top. 

Why we Freelance

Results of Freelance Forward studies produced over the the study’s 10 year history show that respondents enter Freelancing for various reasons, but flexibility and control consistently emerge as prime motivators. Beyond earning a living, when asked about reasons for Freelancing, “to have flexibility in my schedule,” “to be in control of my own financial future” and “to work from the location of my choosing” top the list. This is mainly because unlike traditional employees, whose work schedules are largely imposed by the company, Freelancers are our own bosses. We determine when, where and for whom we will work and therefore, we are able to control our schedules and lives.

The evidence of this freedom is apparent in where Freelancers perform our work. Although return-to-office mandates have brought many professionals back to their cubicle, the majority of Freelancers work from home, at a co-working space, or in another location of their choosing. In fact, 60% of Freelancers work remotely, as compared to just 32% of traditionally employed professionals who work remotely. Furthermore, Freelancers also choose the hours and amount of work they’ll do at a given time. While 77% of Freelancers say they work consistently, they do so based on a schedule that best suits their lifestyles.

The future is Freelance

Freelancing continues to grow as a viable career choice for professionals and according to survey participants, the future of Freelancing remains bright. To understand the future of Freelancing, survey respondents were asked to assess their feelings of optimism, or pessimism, ahead of 2024. Overwhelmingly, Freelancers are optimistic about prospects for their professional growth (80%), personal income and revenue increases (76%), opportunities to earn billable hours (74%) and personal development (84%). When asked about the future, 85% of Freelancers say the best days for Freelancing are ahead. Key findings of Freelance Forward 2023 include:

• Freelancing remains a significant part of the U.S. labor market and economy: Freelancers contributed $1.27 trillion in annual earnings to the U.S. economy in 2023. This was a 78% increase from the estimated $715 billion contributed to the economy in 2014, the first year of Freelance Forward.
• Freelancing hits a new all-time high: The number of professionals Freelancing increased to 64 million Americans, or 38% of the U.S workforce, an increase of 4 million from 2022.
• Freelancers are 2.2 times more likely to regularly use generative AI frequently in their work: 20% of Freelancers use generative AI tools on a regular basis (multiple times per week), which compares to just 9% of traditionally employed professionals.
• Nearly half of Freelancers provide skilled knowledge services: 47% of all Freelancers, or nearly 30 million professionals, provided knowledge services such as computer programming, marketing, IT, and business consulting in 2023.
• A quarter of Freelancers are creating influencer-style content: 23% of all Freelancers, or 14.7 million professionals, created influencer content including livestream services, social media videos, images or blogs in 2023.
• Generation Z and Millennials are the most likely to explore Freelancing: In 2023, 52% of all Gen Z professionals and 44% of all Millennial professionals performed Freelance work.
• Older Americans continue to be part of the Freelance market: In 2023, nearly 8.3 million professionals, or 13% of all U.S. Freelancers, were aged 59 or above.
• The future is bright, according to Freelancers: Over 85% of Freelancers say the best days are ahead for Freelancing.

Happy New Year and thanks for reading,

Kim

Image: Frontal Lobe Coworking, located in the Nationally Registered historic downtown of Howell, MI, opened in 2013 with the intention of attracting workers to a shared office space while also utilizing empty downtown buildings.