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Miami Herald
21 hours ago
- Business
- Miami Herald
The Future Workforce Index: Evolving talent trends in 2025 and beyond
As the integration of AI across sectors accelerates and business leaders feel competitive pressures mount, they are grappling with growing skills gaps that threaten organizational performance. Traditional employment-centric structures with rigid, pre-pandemic models are failing to meet the evolving demands of the workforce. Upwork, an online marketplace connecting businesses with a global pool of freelance talent, surveyed 3,000 skilled knowledge workers via its Upwork Research Institute and found a significant shift is underway: 28% of skilled knowledge workers now operate as freelancers or independent professionals, seeking greater autonomy, financial control, and meaningful work. This shift is reshaping not only careers but also the broader labor market, as freelancers collectively generated $1.5 trillion in earnings in 2024, often out-earning their counterparts who hold traditional full-time trend is poised to accelerate: 36% of knowledge workers who currently hold full-time jobs are considering freelancing, and Gen Z is overwhelmingly choosing independent freelancers are proving to be more future-ready than full-time employees, excelling in emerging fields such as AI, software development, and sustainability while embracing continuous learning and self-directed skill development. They are leading the adoption of AI tools, with over half (54%) reporting advanced proficiency and indicating superior adaptability, critical thinking, and problem-solving abilities-key attributes for navigating an AI-integrated workforce. Although business leaders remain hesitant to embrace nontraditional talent models, Upwork Research Institute research shows that those who leverage this growing talent pool drive higher revenue growth. These findings highlight a growing imperative for businesses: As more skilled workers opt for self-managed, long-term careers centered on continuous learning and skill variety, business leaders must adapt their talent strategies to include these professionals. Failing to do so is to risk widening skills gaps and falling behind in a rapidly shifting world of work. How is skilled talent evolving? As competitive pressures intensify and AI technology advances at an unprecedented pace, workforce skills have become a foremost concern for business leaders. Thirty-eight percent of C-suite executives say the gap between available and needed skills will be a major factor impeding their organization's performance this year-one that the survey shows will have a bigger impact than regulatory changes, leadership misalignment, or shifting consumer demands. Some of these pressures reflect the stark reality that there are simply fewer skilled workers than there used to be: Populations in many developed countries mean people are aging out of the workforce at increasing rates, and organizational structures that are viewed as too rigid in the post-COVID era are causing other groups to leave voluntarily. Some of this change may be due in part to the fact that the very nature of what it means to be skilled is rapidly changing as AI becomes embedded across functions and organizations and creates new ways of working. In this new annual report, the Upwork Research Institute explores the question: How is skilled talent evolving? The findings reveal an ongoing and accelerating shift away from the conventional 9-to-5 employment model, signaling a transformation in the way work is structured and performed. In a survey of 3,000 skilled knowledge workers, more than 1 in 4 (28%) work in a freelance or nontraditional work model, opting for greater control over their career, financial future, and ability to pursue work that is meaningful to them. Skilled knowledge freelance work generated over $1.5 trillion in earnings in 2024, earned by the roughly 20 million workers who performed this kind of work in the United States, according to Bureau of Labor Statistics salary data analyzed by the Upwork Research Institute. Across functions and occupations like writing, creative design, and IT and development, full-time freelancers outearned their full-time employee (FTE) counterparts, earning a median income of $85,000. Skilled moonlighters, who perform freelance knowledge work alongside their full-time jobs, earned $40,000 in addition to their full-time wages. With 78% of skilled freelancers reporting satisfaction with their pay versus just 64% of FTEs, this data suggests people are finding value in reshaping their careers and working outside traditional organizational boundaries. The Future Workforce Index is The Upwork Research Institute's flagship report, tracking the rise of skilled freelancers and their impact on the workforce, on the economy, and on business innovation. Introducing the freelance knowledge worker Skilled knowledge work performed on a freelance or contract basis differs from gig work in that skilled knowledge workers apply highly specialized expertise toward solving organizational challenges. This expertise is often honed through education, training, and experience. Indeed, more skilled freelancers have post-graduate degrees (37%) than their full-time employee counterparts (20%) and translate this knowledge into the delivery of skilled services (such as computer programming, marketing, creative design, and IT) or professional consulting activities. However, different skilled freelancers approach and manage their work differently. This research finds that skilled freelancers typically take on one or more of the following personas that indicate different preferences in modes of working (see Figure 1). Figure 1. The Freelance Business Owner, representing 33% of skilled freelancers, owns and operates their own business, typically managing a portfolio of different clients and projects simultaneously. The Agency Freelancer,representing 43% of skilled freelancers, teams up with other freelancers through an agency model that provides end-to-end services to organizations. The Managed Services Freelancer, representing 33% of skilled freelancers, works as part of a team that provides functional managed services to organizations. The AI-Enabled Freelancer,representing 31% of skilled freelancers, approaches their work using a combination of their human capabilities and AI-enabled tools. While they are not the only persona using these tools to augment their work, these freelancers specifically design and market their services as a partnership between themselves and AI. This mode of working is on the rise, as 36% of skilled freelancers anticipate working this way in five years. Across these modes of working, skilled freelancers are finding freedom that traditional full-time employment models don't allow. These freelancers are motivated by flexibility in their schedule, the ability to be their own boss, and the control they have that allows them to pursue work they feel to be meaningful, all while managing their own development and building a career. Further, these workers are finding the initial value proposition of nontraditional working holds true. The top reasons skilled freelancers started freelancing in the first place-to have flexibility, to be their own boss, and to pursue meaningful work-are the same reasons they continue. Skilled freelancing is also widespread among knowledge workers at all levels. For instance, executive-level leaders may be surprised to learn how high the chances are that they or someone in their immediate network has freelanced; 63% of C-level leaders say they have at some point in their career. In fact, 42% of CEOs have performed skilled freelance work that is related to their current area of expertise. The Future Workforce Index: How skilled freelancers measure up The future is coming fast, and the very concept of being "skilled" is a moving target. According to the World Economic Forum, 39% of worker skills will become transformed or outdated in the next five years. Skilled freelancers lack access to the traditional organizational structures designed to keep employees informed, trained, and relevant. Can they keep up? To answer this question, the Upwork Research Institute developed the Future Workforce Index by conducting an extensive literature review and validating it with internal subject matter experts. The Index is designed, in part, to determine the readiness of skilled workers of all kinds to take on what's next across a range of dimensions. In particular, a future-ready worker is one who has expertise in fast-growing areas, continuously learns and applies new skills, is proficient in using emerging technology like AI to enhance and amplify their work, possesses uniquely human skill sets that are becoming increasingly critical as the workforce shifts to managing and working alongside AI agents, and is motivated and energized to grow their career in a changing world of work. In many cases, skilled knowledge freelancers are actually outpacing their skilled full-time counterparts in future readiness through self-directed learning, hands-on experiences, and continuous self-development that is not always possible in a traditional organizational setting (see Figure 2). Figure 2. Expertise in fast-growing areas. Although the skills landscape is ever-evolving, it is increasingly clear that certain kinds of work-and people who know how to perform it-will be needed in the future. Technology-related roles such as machine learning specialists and software developers are projected to grow, as are green and energy transition roles such as environmental engineers and experts in renewable energy. Nearly 1 in 3 (31%) skilled knowledge freelancers claim extensive experience in renewable energy and sustainability initiatives, versus just 17% of skilled full-time employees. Twenty-nine percent are experienced in building and training machine learning models, compared with 18% and 20% of full-time employees, respectively. And 35% report extensive experience in software development, versus just 28% of full-time employees. Continuous learning and skill application. Skilled freelancers and full-time employees are both similarly comfortable learning new skills, and both groups are excited by the prospect of continuous learning within their careers. One in 3 (32%) skilled workers say they are actively working on picking up new skills "all the time." Unsurprisingly, most (87% of freelancers and 82% of FTEs) say they have learned a new skill in the past six months. The key difference among these workers is in the learning sources available to them. While skilled full-time employees lean more on formal organizational training (54%) and organizationally sponsored development (46%), skilled freelancers are free to pursue a wider variety of formal, experiential, and social learning opportunities, leaning particularly on self-directed learning (64%), formal certification programs (41%), and apprenticeships and mentorships (28% vs. 20% of full-time employees that do the same; see Figure 3). Figure 3. Proficiency in AI. This multimodal approach to learning especially pays off when it comes to using AI tools professionally. Here, skilled knowledge freelancers are well ahead of their full-time employee peers. In short, they are better trained. Fifty-one percent are self-training on AI tools, versus 39% of full-time employees. And although equally likely to be pursuing formal training courses on AI as full-time employees, freelancers are also more likely to be experimenting hands-on and earning formal certifications (see Figure 4). This proactive approach to AI is driven in part by the confidence that these tools will enhance rather than replace their work-84% of skilled freelancers are excited by the prospect of these tools reshaping their services, offerings, and workflows. As a result of pursuing diverse AI learning pathways, over 1 in 2 (54%) skilled freelancers report advanced or expert-level skill in using AI tools for work, and 62% use these tools at least several times per week, versus just 53% of full-time employees. Figure 4. Uniquely human skill sets for an AI agent future. Although technical AI skills are growing in importance, experts agree that humans play a pivotal role in the AI-enabled workplace of the future, as highlighted in a World Economic Forum report released in January. Specifically, as AI agents move from idea to reality, workers increasingly need to manage and work alongside these tools in ways that optimize their output and fully realize their value. To effectively manage AI agents, workers will need to be creative and adaptable, communicate clearly, and think critically. Skilled freelancers reporting these uniquely human skills as a major strength exceed full-time employees across nearly every skill set-notably, more are experts in problem-solving (49% vs. 44% of FTEs), clear communication (47% vs. 40% of FTEs), critical thinking (43% vs. 38% of FTEs), and adaptability (41% vs. 37% of FTEs; see Figure 2). Motivation and energy to take on what's next. Eighty-one percent of business leaders acknowledge they are asking their workers to do more than they were a year ago, and 71% of full-time employees report being burned out. Experience in key areas and proficiency in emerging skill sets are important, but just as critical for future readiness are the motivation and outlook to continue being resilient in the face of disruption and change. Today, skilled freelancers are more energized by their work than are FTEs-83% say their work contributes positively to their sense of physical, mental, and emotional well-being. They are also more likely to perceive their professional opportunities as growing, which is unsurprising, considering their comfort with and proficiency in using AI tools. Specifically, as seen in Figure 5, 82% of skilled freelancers believe they have more work opportunities available to them than a year ago, compared to 63% of FTEs. In fact, 88% of skilled freelancers believe their skill sets are more in demand than ever. Figure 5. Are business leaders ready? Despite a growing need for skilled workers, many business leaders are uncomfortable with some of the implications of freelancers working in an alternative talent model. Ninety-five percent of leaders are uncomfortable with the idea that a worker would consider themselves a business owner or "entrepreneur." Fifty-nine percent are uncomfortable with workers working for other organizations at the same time as their own-in fact, 1 in 2 believe this is "wrong." Twenty-nine percent say they don't feel comfortable with workers pursuing self-development on key topics, like AI, outside of the organization's four walls-despite the limitations of traditional learning and development in keeping pace with rapidly evolving AI tools. But openness to nontraditional talent pools both widens the net for accessing skilled talent and also grows revenue. An analysis of publicly traded U.S.-based organizations shows that high revenue growth companies-those in the top 25% of year-over-year growth-are more likely to embed nontraditional talent models into the fabric of their organization (see Figure 6). Fifty percent of these companies lean on managed services partners, bringing in external talent to manage key operations. An additional 45% embed skilled freelancers across functions. And 41% leverage mature human-machine AI strategies, in which workers-both freelance and full-time-are encouraged to optimize their human skills alongside AI tools. Work innovators are becoming more antifragile through their unique approaches to integrating people and technology. Companies that continue to rely exclusively on traditional work models, conversely, are positioning themselves more reactively and ultimately falling behind. Figure 6. Freelancing is the future of skilled knowledge work The number of skilled knowledge workers freelancing today is massive-and it's poised to grow. Over one in 3 (36%) skilled full-time employees are considering freelancing in order to better access professional opportunities (see Figure 7), while only 10% of skilled freelancers are considering moving into a traditional, full-time model. Gen Z workers, who the BLS projects will make up roughly 30% of the U.S. workforce by 2030, are overwhelmingly electing to work as freelancers-53% of skilled Gen Z knowledge workers are already working in this way. Eighty-four percent of skilled freelancers believe the best days are ahead for freelancing in general, and notably, 77% of full-time employees say the same. Figure 7. What does this mean for skilled workers? Building a career outside of the confines of the traditional work model has never been more possible, or more advantageous. Skilled knowledge freelancers are at the intersection of innovation, AI, and workforce transformation, and are not only outearning their FTE counterparts today but are also better preparing themselves for the future. While stability was once the promise of full-time employment, a rapidly evolving world of work is revealing this holds true neither for every company nor for every worker. The new promise associated with freelance work is control, self-development, and meaning. It is important to note that independently built careers are a constantly evolving long game. Two-thirds of skilled knowledge freelancers have been working this way for over three years, and 18% for over 10 years. Key to this is freelancers taking a leading role in their own learning. Indeed, 87% of skilled knowledge freelancers prefer work that helps them improve their current skills or learn new ones versus work that allows them to use the skills they have. When evaluating potential work opportunities, these freelancers determine person-skills fit-the extent to which the work will allow them to apply their strongest skills and provide them with enough skill variety to learn something new-in addition to other factors like flexibility and earning potential. What does this mean for business leaders? C-suite leaders know they've entered a new era when it comes to their organizations. Most realize they cannot rely on traditional approaches to developing products, engaging customers, and creating value. Yet the traditional work model remains the most popular way to structure an organization, with relatively few leaders open to moving away from the norm. Skilled knowledge workers are pushing back. With so many opting out of the traditional organizational structure and instead into lucrative, meaningful, self-managed careers, leaders must ensure that any search for skilled talent includes these workers, or they risk exacerbating skills gaps and falling behind. Further, it is worth considering the factors driving this opt-out. Skilled workers, whether they currently are, once were, or have never been full-time employees, believe that within organizations their professional and developmental opportunities are relatively limited. The most effective talent models of the future will be those that embrace diverse ways of working, empowering all individuals to contribute their best while removing barriers that hinder learning, innovation and growth. Methodology The Upwork Research Institute conducted a survey of 3,000 skilled, U.S.-based knowledge workers from December 2024 through February 2025. Skilled workers were determined by first targeting a representative sample of U.S. workers, and then limiting survey participants to those working above the administrative level across skilled organizational functions and earning hourly earnings above a minimum threshold, as determined by analyzing BLS salary data. The margin of error for these insights is 1.8% at the 95% confidence level. Skilled freelancers were determined through self reports, with the additional criteria of currently working or having worked as freelancer within the past 12 months. Skilled moonlighters-full-time employees who also perform freelance work on the side-were determined when their freelance work met the same criteria. In order to extrapolate survey insights to skilled U.S. workers, the BLS category of management, professional and related occupations was used (comprising approximately 71.5 million workers, or 42% of working adults in the U.S. currently). Median self-reported earnings were used to approximate the 2024 earnings of skilled full-time workers, skilled freelancers, and skilled moonlighters (where self-reported earnings were multiplied by the percent of their earnings attributed to freelance work). The Upwork Research Institute conducted an additional survey of 502 U.S.-based C-level executives with hiring responsibilities within their organizations in December 2024. These executives represented publicly traded organizations in the business and professional services, healthcare and medical, manufacturing, retail and consumer goods, and software and technology industries. This story was produced by Upwork and reviewed and distributed by Stacker. © Stacker Media, LLC.
Forbes
2 days ago
- Business
- Forbes
The Hidden Human Cost Of AI Productivity — 3 Ways To Retain Top Talent
Your best AI performers are burned out. The Hidden Human Cost of AI Productivity — 3 Ways To Retain ... More Top Talent 'AI is no longer just a background tool—it's becoming a central part of how we work and interact. It's unlocking speed and scale, but also reshaping how we collaborate and connect as humans. The productivity paradox we're seeing may be a natural growing pain of traditional work systems, ones that reward output with AI, but overlook the human relationships behind that work. To lead effectively in the age of AI, companies need to redesign work in ways that support not just efficiency, but also well-being, trust, and long-term resilience.' - Dr. Kelly Monahan, managing director of the Upwork Research Institute Productivity gains by employees who use AI are accelerating. Yet, workers who report the highest productivity gains also report the highest rate of burnout. These top AI performers are also twice as likely to consider quitting. The above findings stem from a global study by the Upwork Research Institute of 2,500 professionals, including C-suite executives, full-time employees and independent freelancers. From senior leaders to team managers (and even aspiring managers), the prospect of losing talent with the best AI skills should be a wake-up call. You need to proactively address their concerns to retain your top performers. Here are three ways to support your AI-skilled staff: 1. Build Better Human-To-Human Connections According to the Upwork study, more than two-thirds of high-performing AI users trust AI more than their colleagues, and 64% report a better relationship with AI than human staff. While this is fine for tasks that require human with AI collaboration, it suggests that human with human collaboration is lacking. In response, leaders should focus on team dynamics and foster stronger interpersonal relationships. Earmarking time to know your team personally and to help them get to know each other is an investment in stronger collaboration. Host regular team breakfasts (or lunches), ideally in-person though virtual teams can eat together on video conference. Resolve not to talk business, and instead pick a social theme, such as everyone bringing their favorite movie recommendation or sharing a photo that showcases something meaningful outside of work (e.g., family photo, favorite hobby). If you can spring for the meal (or send gift cards around to virtual staff), that's an extra treat. 2. Support Individual Career Aspirations The Upwork study also uncovered more freelancers than full-time employees reported a more productive relationship with AI, with freelancers linking AI to tangible career outcomes (e.g., 90% of freelancers credited AI with helping them acquire new skills faster). In today's competitive job market, all workers, full-time and freelance, value tangible career outcomes – i.e., career progress in what matters most to them. Therefore, savvy leaders should focus, not only on achieving company priorities and team results, but also on helping each team member achieve their individual career aspirations. In addition to getting to know your staff on a personal level, get to know their career plans. What is their ideal next step – e.g., to manage, to move laterally to a new functional area, to work abroad? Don't assume that everyone's career path is the same. How can you be helpful – e.g., to help them decide on a next step, to give them visibility opportunities, to make introductions? As a leader, you have a wider lens for what's possible and what's necessary for career success at your company, so help your staff as individuals, which in turns helps the overall team and company. 3. Remind Top Talent Why Their Work Matters In interviews for the Upwork study, high users of AI find themselves stuck between two extreme types of leadership -- leaders who don't get AI at all, or leaders who believe AI will magically solve everything. In either case, strategic implementation of AI falls on the user, a heavy burden leading to burnout. As a leader, strategy is your ultimate responsibility – for the CEO, that's strategy for the entire company; for a business head, that's strategy for your business in collaboration with the CEO's overarching vision; for a team lead, that's strategy for your project in collaboration with the business heads and C-suite leaders above you. Share the objective and key results (OKRs) expected of your team, and repeat these regularly throughout the project, so there is no confusion (and a compelling Why!) around why everyone is working so hard. Then, ask your team how AI is helping or thwarting their efforts, and support your team in figuring out how to best incorporate AI. That support might be clarifying company policy on AI, securing training on technical skills or developing processes specific to your project (e.g., use AI for this not that). Check in frequently, as needs may change over the project life cycle. Enroll your manager and other senior leader support to ensure consistent AI best practices across the company.
Axios
30-06-2025
- Business
- Axios
Exclusive: AI job substitution is real, but narrow, per new study
Generative AI is replacing low-complexity, repetitive work, while also fueling demand for AI-related jobs, according to new data from freelance marketplace Upwork, shared first with Axios. Why it matters: There are plenty of warnings about AI erasing jobs, but this evidence shows that many workers right now are using generative AI to increase their chances of getting work and to boost their salary. The big picture: Uncertainty around AI's impact and abilities means companies are hesitant to hire full-time knowledge workers. Upwork says its platform data offers early indicators of future in-demand skills for both freelancers and full-time employees. By the numbers: Freelance earnings from AI jobs are up 25% year-over-year, per the report. Freelancers in AI earn over 40% more per hour than those doing non-AI work. What they're saying: The increased freelance earnings from AI jobs are typically from people who already had experience in that particular field, Kelly Monahan, manager of the Upwork Research Institute, tells Axios. "If you were a traditional machine learning expert, and now you're augmenting that work with generative AI, you're seeing such a great premium," Monahan says. The same is true for graphic designers who use AI image or video generation tools, she adds. Between the lines: Most business leaders still don't trust AI to automate tasks without a human in the loop, so they're keen on anyone who knows how to use AI to augment their work. Upwork data also showed that managers still trust humans working alone and humans working with AI over AI-only outputs. And that trust gap is widening. Workers using AI for augmentation outnumber those using it for automation by more than 2 to 1, a trend that matches data that Anthropic released in February. Demand for repetitive coding has dipped, but the report shows clients are still looking for experienced developers for more complex projects. Freelancers with jobs requiring coding skills for at least 25% of the work now earn 11% more for the same jobs compared to November 2022, when ChatGPT launched, per Upwork. The data also suggests that the rise of vibe coding — using AI to code without knowing how to code — is creating demand for more workers who are skilled at using vibe coding tools. This is giving rise to what Upwork calls "the generalist," which is anyone who can work with AI to code and design. What they did: Upwork used its proprietary platform data to evaluate more than 130 categories of work and 62 narrow job categories within broader job fields like "design & creative" or "sales & marketing." Researchers tracked the full lifecycle of tasks and jobs with the Upwork marketplace over the last six months. The company says its dataset includes "millions of job posts" and "billions of dollars in freelance earnings," tracking how job types changed based on when contracts started and how much a freelancer earned. Yes, but: AI adoption in the workplace has had a rocky start with executives pushing for it and workers pushing back. Many employees still don't understand company policy and are using their own AI tools in secret. A Duke University study published last month found that workers who use genAI "face negative judgments about their competence and motivation from others." Zoom out: Anthropic on Friday launched a program to study how its tools and others are changing the way we work. The Economic Futures Program will provide research grants, work with policy makers and track AI's economic impact and usage trends over time. "There's no shortage of opinions about AI's economic outcomes," Anthropic wrote in its announcement. "We believe it's fundamental to ground these conversations in real-world data." Anthropic CEO and co-founder Dario Amodei told Axios last month that AI could wipe out half of all entry-level white-collar jobs and spike unemployment to 10-20% in the next one to five years.
Forbes
09-06-2025
- Business
- Forbes
The Top Freelance Niches Booming This Summer, Backed By Data
Freelancing is a business, not a one-person pie-in-the-sky project, so give it the research it ... More deserves Are you still relying on guesswork to figure out which freelance skills will pay off? If you're going off based on gut feeling, what seems right to you, or what you assume the market needs, you're already starting off on the wrong foot. Freelancing is a business, just like any other startup or enterprise. And because it's a business, you can't afford to guess your way into success. You need hard, concrete data from the most relevant and credible sources to ensure you're on the right path to building your income and attracting clients. The Upwork Research Institute, which is the team of analysts behind the freelance platform, Upwork, recently analyzed its database and discovered that AI and ML (machine learning) are two of the most in-demand skills for 2025. That's hardly a surprise, given the rise in traction when it comes to AI, particularly within the U.S. But what if you're not interested in working directly in AI development specifically? Are there any other options for you to make money as a freelancer? There absolutely are. Upwork discovered a number of freelance niches that hold strong earning potential, due to their high demand across the platform. They are listed below, divided into categories. But before we get into the full list, let's dig into something even more important: the tremendous advantages you get from 'niching' and why it's such a critical step when you're starting your freelance career and business journey: When I started my freelance business six years ago, I made a classic rookie mistake: I generalized my skills, services, and offer. Like most other freelancers I know, I was scared to narrow down my field because, after all, wouldn't that also narrow my income? Didn't I need to be all things to everyone? What if I got too exclusive and had to turn down clients? Wouldn't I lose out on money and wouldn't that stall my growth? For years I kept up this destructive habit of calling myself a 'career coach' (a very generalized title with no specific audience in mind, literally anyone from any age or background who asked for it was on my radar) until, several trainings, books read, potential income and clients lost, and observations later, I came to realize this one thing: the corny phrase, 'the riches are in the niches' actually matters. Deciding to narrow my focus to a very specific audience and type of career coaching proved beneficial for me because that's when ultimately everything in my life, career, finances, and business, changed. Even though initially I was worried that I'd lose out, and progress seemed slow, it eventually took off and within six months I became known as a leadership expert specifically for mid-level managers. I was approached by professionals who were serious about long-term career growth, landing promotions, and succeeding in their management and leadership positions. And even though I've since pivoted to a different aspect of my business and no longer focus on delivering leadership-focused services per se, this mindset shift is what enabled me to make the pivot to where I am now in the first place. And even now, with my current business set-up, I'm very clear on who I serve, and who doesn't fall into that category. I understand the services I provide, have a clear, direct offer, and am not generic with it. Because I'm clear on what I offer, I don't waste time because I won't pitch to, or engage with, 'potential' clients who do not fit my niche. This is what you call a sub-niche. A sub-niche is when you have a very broad category (like web development) and you narrow this down to something like UX/UI design. From there, you can laser focus on a specific group of customers who, from your research, demonstrate high demand for this service (say, banking firms and financial institutions, for example). This gives you the double advantage of not only establishing yourself as highly unique, but you increase your credibility and reduce competition since you're seen as a domain expert. After all, there are likely thousands of freelance UX/UI designers out there, but only a fraction who specialize in financial apps only. Additionally, because you're now a domain expert, it's easier for you to establish thought leadership, and you can also charge a premium because you're not generalizing your offer anymore: you're providing a bespoke solution. Now that you understand more about "niching," let's get back to the Upwork list of freelance niches in high demand this year, so you can jump into creating a solid offer and start making money this summer (and of course, don't forget to sub-niche once you've selected one): There are quite a few niches in here, so it's almost a guarantee that there'll be something for you regardless of your professional background or expertise. Figuring out your niche allows you to charge a premium and develop thought leadership Your task today is simple: to start making money from your skill and niche this summer, figure out where your skillset and expertise lies on from the above list of in-demand niches, then define and zone in on your subniche. From here on, this is how you'll brand yourself as a professional and promote your services.
Forbes
27-04-2025
- Business
- Forbes
Freelancing: Workers Are Ditching 9-To-5 Jobs To Earn $1.5 Trillion
The American workforce is fed up with worrying daily about losing their jobs. They are leaving ... More traditional jobs and turning to freelancing where they're finding greater autonomy and financial control, out-earning their fully-employed colleagues. Amid the economic instability and mass layoffs in the country, the American workforce is fed up with worrying on a daily basis about losing their jobs. They are seeking greater autonomy and financial control through freelancing. Statistics show that two in three laid-off workers are happier building freelancing careers. And one in five employees have begun freelancing or started their own business to escape favoritism in traditional workplaces. Plus, a new study finds that workers are ditching traditional jobs for freelancing, out-earning their full-time colleagues with an annual $1.5 trillion annual salary last year alone. A major shift is underway in this country in how work gets done. More Americans are opting out of traditional jobs and transitioning into freelancing jobs. Working in a job that could end at any moment creates stress and limits your control over your life. The word 'freelance' is resonating big time with the U.S. workforce. Freelancing frees you up with the autonomy to be the captain of your own ship, instead of a passenger, whose fate is determined by big business that might not have your best interests at heart. Nearly half of American workers are using secondary income sources, and the numbers continue to rise. The Upwork Research Institute surveyed 3,000 skilled knowledge workers, revealing a shift away from the conventional nine-to-five job, signaling a transformation in the way work is structured and performed in this country. The American workforce is opting for greater control over their career, financial future and ability to pursue work that is meaningful. The report finds that freelancers are outpacing full-time employees in earning power, AI adoption, expertise in high-growth categories of work and critical human skills required to work alongside AI. Full-time freelancers out-earned their full-time employee counterparts, earning a median income of $85,000. And employees who performed freelance knowledge work alongside their full-time jobs, earned $40,000 in addition to their full-time wages. Other key results include: There are five major benefits to being a freelancer: 1. You get to be your own boss and call the shots. 2. You gain flexibility when you work in a location of your choosing. 3. You're in control of your personal and financial future. 4. You can pursue work that is personally meaningful that you're passionate about. 5. You have the potential to out-earn your full-time traditionally employed colleagues. In addition, the Upwork report says that skilled freelancers are more future-ready than full-time employees, excelling in emerging fields such as AI, software development and sustainability while embracing continuous learning and self-directed skill development. They are leading the adoption of AI tools, with over half (54%) reporting advanced proficiency and indicating superior adaptability, critical thinking and problem-solving abilities—key attributes for navigating an AI-integrated workforce. 'Although business leaders remain hesitant to embrace non-traditional talent models, our research shows that those who leverage this growing talent pool drive higher revenue growth,' the annual report asserts. 'These findings highlight a growing imperative for businesses: as more skilled workers opt for self-managed, long-term careers centered on continuous learning and skill variety, business leaders must adapt their talent strategies to include these professionals. Failing to do so is to risk widening skills gaps and falling behind in a rapidly shifting world of work.' According to the Upwork report, there's a difference between skilled knowledge work performed on a freelance or contract basis and gig work. Skilled knowledge workers apply highly specialized expertise toward solving organizational challenges, the report states. Skilled freelancers often have post-graduate degrees (37%), compared to their full-time employee counterparts (20%) and translate this knowledge into the delivery of skilled services (such as computer programming, marketing, creative design and IT). The report identifies four types of freelancing within the broad category of skilled freelancing, each mode approaches and manages work in different ways: 1. Freelance Business Owner (make up 33%). A self-employed professional who runs their own business, managing multiple clients and projects. 2. Agency Freelancer (make up 43%). A freelancer working through an agency that delivers full-service solutions to organizations, popular among Gen Z professionals. 3. Managed Services Freelancer (make up 33%). A freelancer who works on a team delivering managed services, often focused on one organization and project at a time. 4. AI-Enabled Freelancer (make up 31%). A freelancer who combines human skills with AI tools, popular among Gen Z and moonlighters, balancing freelance work with full-time jobs. Note: The researchers point out that these percentages exceed 100% due to freelancers taking on multiple modes of working. Perhaps one of the biggest downsides of freelancing is reported in a new Fronteegg study, showing that 35% of freelancers have missed time-sensitive contracts due to login failures, and 30% lost a paycheck on high-paying opportunities. The study mentions that freelancers lose an average of $1,018 from lockouts. Freelancers spend nearly a full workday (about seven hours) regaining access after being shut out. In the past, login issues have forced 20% of freelancers to walk away from active work, and nearly one in three freelancers have switched platforms over login frustrations. But overall, the Upwork report finds skilled freelancers are finding a freedom that traditional full-time employment models don't allow. These workers are finding the initial value proposition of working non-traditionally holds true," the report concludes. "The top reasons skilled freelancers started freelancing in the first place—to have flexibility, to be their own boss, and to pursue meaningful work—are the same reasons they continue.'
