“Freelancing in America” is the most comprehensive study of the independent workforce. Commissioned by Upwork and Freelancers Union, this study analyzes the size of the growing freelance economy and provides insights into the major role freelancers play in the future of work. In fact, based on this year’s findings it is predicted that the majority of the U.S. workforce will be freelancers within a decade (by 2027).
2. Study objectives
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Upwork and Freelancers Union commissioned Edelman Intelligence, an independent research firm, to conduct their fourth annual
study of the U.S. freelance workforce with these objectives:
1. Assess change: AI’s impact, freelancing and the future of work
2. Quantify freelancing: Size the workforce and predict a coming freelancer majority
3. Examine why: Help reveal what’s causing more people to choose to freelance
4. Share considerations: Better understand freelancers’ financials, economic impact and concerns
This deck is organized in sections to detail results on each objective.
3. Methodology
• An online survey of 6,000 U.S. adults who have done paid work in the past 12 months
• Data collected July 21, 2017 – August 14, 2017 by independent research firm Edelman Intelligence
• This is the fourth year the survey has been conducted, allowing for trend data. Data collected in the summers of 2014-
2016 is referenced throughout the analysis and indicates the percentage point change over the past three years.
• Results are weighted to ensure demographic representation in line with the United States Bureau of Labor Statistics’ 2016
Labor Force Statistics from the Current Population Survey and the American Community Survey
• Overall margin of error of ±1.27% at the 95% level of confidence
• Audiences surveyed:
U.S. Workers Overall
U.S. adults 18+ who have earned
income from work within the past 12
months, including both freelancers
and non-freelancers
Freelancers
Individuals who have engaged in supplemental, temporary, project- or contract-
based work, within the past 12 months
Non-Freelancers
Individuals who earned income through work but have not engaged in
supplemental, temporary, project- or contract-based work, within the past 12
months.N=6,000
N=2173
N=3827
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4. Assess change: AI’s impact, freelancing and the
future of work
• We are in the Fourth Industrial Revolution. 54% of the U.S. workforce is not very confident that the work they do
today is likely to exist in 20 years (freelancers and non-freelancers share this believe).
• Freelancers are more aware of job market transformation. 49% of full-time freelancers indicate that their work has
already been affected by AI and robotics, versus only 18% of full-time non-freelancers.
• Freelancers update their skills more often and believe they’re better prepared for the future. 65% of full-time
freelancers say they’re updating their skills as jobs evolve, versus only 45% of full-time employees
Key Findings
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5. Quantify freelancing: size the workforce and
predict a coming freelancer majority
• 57.3 million people freelanced this year.
• The freelance workforce grew at a rate 3x faster than the U.S. workforce overall since 2014.
• Younger generations are driving the acceleration of freelancing. Almost half of working Millennials (47%) freelance,
more than any other generation.
• At its current growth rate, the majority of the U.S. workforce will be freelancers by 2027.
Key Findings
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6. Examine why: help reveal what’s causing more
people to choose to freelance
• Perceptions of freelancing as a career are becoming more positive: 69% of freelancers agree (up 6 points since 2016).
• Main drivers of freelancing for full-time freelancers are freedom and flexibility, with part-time freelancers driven by
earning extra money as well as flexibility.
• Freelancers increasingly think having a diversified portfolio of clients is more secure than one employer (63% agree, up
10 points since 2016) and have an average 4.5 clients per month.
• Freelancers are finding more work online. 71% say the amount of work they obtain online increased this year (up 5
points since 2016).
• Don't call this the “Gig Economy”; results show respondents much prefer the “Freelance Economy” (49% prefer,
approximately 5x more than the 10% who prefer “Gig Economy”).
Key Findings
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7. Key findings
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Share considerations: better understand freelancers’
financials, economic impact and concerns
• Freelancers contribute approximately $1.4 trillion to the U.S. economy annually – an increase of almost 30% since last year.
• Freelancers and non-freelancers share most of the same list of top concerns, which includes access to affordable healthcare,
debt and ability to save.
• That said, freelancers have a unique top concern -- income predictability. Freelancers therefore dip into their savings more
often, with 63% of full-time freelancers dipping into savings at least once per month versus only 20% of full-time non-
freelancers.
• 7 out of 10 freelancers prefer taking home more pay and purchasing benefits on their own, rather than receiving less pay and
accessing benefits through an employer or client.
• Freelancers are seeking a voice, beyond political affiliation. 72% of freelancers are open to crossing party lines if a candidate
indicated that they supported freelancer interests.
July 2017 civilian labor force: 160,000,000
FL: 35.8%
US Workforce data sourced from BLS
2014: September 2017
2015: July 2015
2016: July 2016
2017: July 2017
Trending Note: 2017 data on this slide cannot be trended back to 2014 due to the difference in questioning. This slide contains data for Q81_2, which asked respondents to input a number. In 2014, income was measured by asking the following:
Q72: Which of the following best describes your annual personal income? (Personal, not household income)
Less than $25,000
$25,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000-$149,999
$150,000 or more
Prefer not to answer
Methodology:
Calculated the average income from freelancing for each of the 5 freelance segments using Q31_2 “Over the past year, how much money did you earn in total from freelancing, before taxes or other deductions?”
2) Calculated estimated # of freelancers per segment using freelancer flowchart and BLS workforce estimate (July 2017 Employment Situation)
3) Multiplied the average income per segment x estimated # of freelancers per segment to get total contribution per segment
4) Added contributions from all 5 segments to get total estimated income contribution from freelancers overall
IC: 40% in 2014; 36% in 2015, 35% in 2016
DW: 18% in 2014; 26% in 2015, 28% in 2016
Moonlighters: 27% in 2014; 25% in 2015, 25% in 2016
Temps: 10% in 2014; 9% in 2015, 7% in 2016
F Biz Owners: 5% in 2014; 5% in 2015, 7% in 2016
Increase in diversified workers was primarily between 2014 & 2015, driven by increased participation in sharing economy. Only a 2 pt increase from 2015 to 2016.
For reference, numbers in charts are rounded and total over 100%
July 2017 civilian labor force: 160,000,000
Total Freelancer: 57.3M