Popularity of freelancing on the rise as 4 in 10 workers participated this year

The impact of the employment paradigm shift that has taken place over the past few years likely will last well beyond the end of the pandemic.

“The unprecedented global shift to remote work created by the pandemic transformed the public’s notion of work and the workplace, and has had a lasting impact on how people view their jobs and careers,” according to the Freelance Forward 2022 survey from Upworks. “In 2022, an increasing percentage of the U.S. workforce turned to freelancing opportunities to find greater professional fulfillment, flexibility and financial stability, and a new approach to managing their career trajectory.”

Nearly 4 in 10 U.S. workers – or 60 million people — performed freelance

work in the past year, an increase from the previous year. Freelancers contributed approximately $1.35 trillion in annual earnings to the U.S. economy, which is $50 billion more than in 2021. Among the other key findings:

• Perceptions of freelancing continue to shift. Nearly three-quarters of freelancers say perceptions of freelancing as a career are becoming more positive, up from 68% in 2021.
• Gen Z and millennials are the most likely to explore freelancing. In 2022, 43% of all Gen Z professionals and 46% of all millennial professionals performed freelance work.
• More than half of freelancers provide knowledge services. Fifty-one percent of all freelancers, or nearly 31 million professionals, provided knowledge services such as computer programming, marketing, IT and business consulting in 2022.
• Diversified workers became more common. Seventeen percent of U.S. workers now are diversified, meaning they seek multiple sources of income from a mix of traditional employment and freelance work, up three percentage points from 2021.
• Freelancing continues to grow among the most educated. Twenty-six percent of all U.S. freelancers hold a postgraduate degree, up from 20% in 2021.
• The majority of freelancers are happy with their career decision. Although professionals begin freelancing for various reasons, satisfaction levels continue to rise, with two-thirds of workers surveyed more optimistic about their job or career opportunities as a freelancer.
• Two-thirds also say they feel more stimulated and happier with the freelance work they do compared to a traditional job. Nearly three-quarters say freelancing has given them greater control over their life, while other benefits include attention to their physical health and work-life balance.

Related: In tight labor market, 4 in 10 full-time employees are considering the shift to freelancing

As more young workers continue to freelance, the trend is likely to continue.

“Freelancing continues to grow as a viable career choice for many U.S. professionals, especially those seeking greater flexibility and control,” the report says. “It also bodes well that younger generations are embracing freelance work en masse.”