Upwork Report Finds One in Four U.S. Knowledge Workers Now Freelance, Earning $1.5 Trillion in 2024

A new report from Upwork reveals that more than one in four U.S. knowledge workers—28%—are now working independently, generating $1.5 trillion in earnings in 2024. The findings are part of the company’s inaugural Future Workforce Index, published by the Upwork Research Institute, which analyzes the evolving role of skilled freelancers in the U.S. workforce.

The report highlights a growing shift toward flexible, AI-driven work models and identifies freelancers as leading the way in technology adoption, continuous learning, and future-ready skills. According to the study, freelancers are outpacing full-time employees (FTEs) in AI usage and human skills needed for working alongside emerging technologies.

“The traditional 9-to-5 model is rapidly losing its grip as skilled talent chooses flexibility, financial control, and meaningful work over outdated corporate structures,” said Kelly Monahan, managing director of the Upwork Research Institute. “Companies that cling to old hiring and workforce models risk falling behind, while those embracing independent professionals are driving growth and innovation. The future of working differently isn’t coming; it’s already here with skilled independent talent leading the way.”

Freelancers Driving the Economy and Innovation

According to Upwork’s data, skilled freelancers earned a total of $1.5 trillion in 2024. Roughly 20 million individuals in the U.S. are freelancing, and those who earn exclusively through freelance work reported a median income of $85,000—higher than the $80,000 median for full-time employees.

Freelancers also show higher levels of education, with 37% holding postgraduate degrees, compared to 20% of full-time employees. Many are adopting specialized roles, including Freelance Business Owners, Agency Freelancers, Managed Services Freelancers, and AI-Enabled Freelancers.

The report highlights that freelancers lead in both AI adoption and human-centric skills. Over half (54%) of freelancers report advanced AI proficiency, compared to 38% of FTEs. Additionally, 29% have extensive experience building, training, and fine-tuning machine learning models, versus 18% of full-time workers.

Freelancers also rank higher in problem-solving (49% vs. 44%), critical thinking (43% vs. 38%), adaptability (41% vs. 37%), and communication (47% vs. 40%).

“Skilled knowledge freelancers are at the intersection of innovation, AI, and workforce transformation,” said Gabby Burlacu, senior research manager of the Upwork Research Institute. “As they continue to grow in importance, they are driving change in how work is structured and how businesses operate. These freelancers are thriving on Upwork, where we’re seeing firsthand just how adaptable, AI-proficient, and outcome-focused they are, making them critical partners for businesses seeking to innovate, embark on AI transformation, and grow.”

Corporate Adoption of Non-Traditional Talent Models

Among 400+ publicly traded U.S. companies surveyed, those in the top 25% for revenue growth are more likely to integrate freelancers (45%), managed services (50%), agencies (39%), and human+AI collaboration (41%) into their workforce strategies. However, barriers remain, with 59% of business leaders expressing concern about multi-company work and 41% skeptical about AI tools.

The report suggests this shift toward freelancing is accelerating. Over one-third (36%) of full-time employees are considering freelance work, while only 10% of freelancers are looking to return to traditional employment. Gen Z is leading the way, with 53% of skilled workers in this demographic already freelancing. As Gen Z is expected to make up 30% of the U.S. workforce by 2030, this trend may significantly reshape the employment landscape.

Optimism remains high across the board, with 84% of freelancers and 77% of full-time employees saying the best days of freelancing are ahead. Meanwhile, 82% of freelancers report more work opportunities now than a year ago, compared to 63% of full-time employees.

The report is based on a survey of 3,000 U.S.-based skilled knowledge workers conducted between December 2024 and February 2025, with a margin of error of ±1.8% at a 95% confidence level. A separate survey of 502 C-level executives from publicly traded companies contributed insights on hiring and workforce strategy trends.

Image: Canva

This article, "Upwork Report Finds One in Four U.S. Knowledge Workers Now Freelance, Earning $1.5 Trillion in 2024" was first published on Small Business Trends

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