Rise of freelancers sets off wake-up call for employers

Researchers are noting an uptick in the number of people turning to freelance work—either in addition to or instead of payroll jobs. What’s fueling the change? The desire for flexibility, remote work, and improved work/life balance top the list of factors. The trend is expected to continue, as a recent survey of U.S. workers finds that nearly 60% of freelancers expect to do more freelance work this year. So, the challenge for employers is this: Find ways to capitalize on the trend.

Changing work scene

Whether it’s hiring a contractor for a short-term, onetime project or adding expertise for the long haul, employers are increasingly looking to independent workers to fill gaps without adding more payroll employees.

Freelancers appreciate flexibility and the work/life balance aspects of independent work, and at least in many cases, the money’s not bad.

A 2025 report from The Upwork Research Institute says that freelancers collectively generated $1.5 trillion in earnings in 2024, and they often earned more than workers in traditional full-time roles. The report also says the trend is expected to continue, with Gen Z leading the way.

In studying the trend, Upwork, which connects businesses with independent professionals, surveyed 3,000 skilled knowledge workers and found that 28% were operating as freelancers or independent professionals.