Freelancing is no longer a side trend — it has become a major part of the U.S. economy.

According to the Bureau of Labor Statistics (BLS), about 9.9 million people were counted as “unincorporated self-employed” in August 2025. Yet this number leaves out millions of others working independently in different forms. 

Broader surveys, like MBO Partners’ State of Independence 2025, estimate more than 72.9 million Americans are freelancing in some capacity. That’s close to half of the entire workforce.

These workers contribute trillions of dollars in earnings across industries such as technology, design, and professional services. Their growth is changing how businesses hire, how taxes are collected, and how benefits are structured.

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In this guide, you’ll see the most recent data on freelancing in the U.S., what factors may drive growth through 2028, and the key demographics shaping today’s independent workforce. By the end, you’ll have a clearer picture of where freelancing stands today and where it may be headed.

2025 Freelance Workforce at a Glance

The size of the freelance workforce depends on how you measure it. The Bureau of Labor Statistics (BLS) uses a narrow definition that only counts people working for profit in unincorporated businesses. Under that standard, about 9.9 million workers were recorded in August 2025 on a seasonally adjusted basis (or about 10 million not seasonally adjusted).

Why is the number smaller than private surveys?

✅ Incorporated business owners are excluded because they are classified as wage-and-salary workers of their own corporations

✅ Side gigs, part-time freelancers, and micro-businesses often fall outside the official BLS definition

When incorporated owners are added back in, the picture looks bigger. A separate BLS table for August 2025 shows about 16 million self-employed workers in total, broken down into:

  • ~7 million incorporated owners
  • ~9.4 million unincorporated workers (nonagricultural)

Private surveys cast a wider net. The MBO Partners State of Independence 2025 counts about 72.9 million independent workers, or nearly 45% of the labor force. That is slightly higher than the 72.7 million recorded in 2024 and far above pre-pandemic levels.

📝 Note: BLS numbers and private surveys use different methods and definitions, so they are not interchangeable.

Economic Weight

Even under conservative definitions, independent workers represent a meaningful slice of the U.S. workforce. BLS data serves as the official baseline, but private surveys provide a broader picture that includes incorporated owners, contractors, and side-gig earners. 

Looking at both together helps policymakers, businesses, and workers understand the full scope of independent work. 

Outlook Through 2028

Private forecasts suggest that freelancing will continue to expand. If recent adoption trends hold, the number of independent workers may reach 90 million by 2028 under the broad definition.

Bar chart of U.S. freelance workforce size, 2019–2025 actuals and projections to 2028. Show steady rise from ~41M in 2019 → ~73M in 2025 → ~90M in 2028.

References:

Who Makes Up Today’s Freelance Workforce?

Freelancing in the U.S. continues to be driven by younger generations, with most independent workers now concentrated in knowledge-based roles. These include consulting, marketing, coding, and financial services, which tend to provide higher and more stable income opportunities compared to short-term gig work.

📌 Also read: What Kind of Freelancers Can Open a Solo 401k?

Freelancer Demographics (2025)

Sources: MBO Partners 2025 State of Independence; Recruiting Headlines summary

  • Millennials (ages 28–43): 34%
    This group remains the largest share of freelancers. Many entered the independent workforce during the Great Recession and now dominate mid-career consulting and professional service roles.
  • Gen Z (ages 18–27): 28%
    The youngest cohort has more than doubled the share of Boomers. Many started freelancing as side projects while still in school and have since expanded into full-time careers.
  • Gen X (ages 44–59): 27%
    These mid-to-late career professionals are often concentrated in higher-value niches such as consulting, financial services, and leadership-oriented contract work.
  • Boomers (60+): 11%
    Their presence is shrinking as more transition toward retirement or scale back their independent practices.

Overall, more than seven in ten freelancers are under age 45, showing how independent work has become a primary career path rather than just a fallback. Many in this group are building long-term businesses in consulting, tech, and professional services, which helps explain why freelancing now contributes such a large share to the U.S. economy.

Who’s Driving Freelance Growth in 2025

Freelancing is evolving quickly, shaped by education levels, income expectations, and new ways of structuring independent work. Below are the biggest demographic and preference shifts and what they may mean for the future of freelancing.

Key Trends and Preferences

According to Upwork’s 2025 research, several patterns stand out:

Knowledge work share. About 47% of all freelancers provided knowledge (skilled) services (e.g., programming, IT, marketing, consulting).

Education levels are high. About 37% of skilled freelancers hold postgraduate degrees, compared to roughly 20% of salaried employees.

Freelancers operate under multiple models.

  • 43% work under an agency or collective. 
  • 33% identify as business owners managing a client portfolio.
  • 33% are part of managed service teams.
  • 31% use AI tools in their work, and 36% expect to rely on them even more in the next five years.

Income and satisfaction skew higher. About 78% of skilled freelancers report being satisfied with their pay, compared to 64% of employees.

Earnings often outpace W-2 roles. Full-time freelancers reported a median income of about $85,000 in 2024.

Opportunities keep expanding. Around 82% believe they have more work options in 2025 than they did a year ago.

What the Numbers Suggest

These trends reveal deeper shifts in how people structure freelance work and how the market is evolving:

Freelancing as a Professional Path

Freelancing is increasingly a professional career path, not just a side activity. A growing share of independent workers focus on skilled services that require advanced education, specialized knowledge, or strategic expertise. This shift reflects a move away from gig-style tasks into higher-value roles in areas such as consulting, technology, and financial services. 

At the same time, freelancers are no longer limited to working alone. Many now operate as business owners, collaborate under agencies or collectives, or blend their work with AI tools. These hybrid models highlight how the structure of freelancing is expanding beyond the traditional “solo operator.”

Expanding Operating Models

Because there is no single freelancer profile, diverse operating models are likely to become more common. Companies that want to tap independent talent will need to adapt, engaging with individuals who may present themselves as solo specialists, agency partners, or team contributors. This variety is reshaping how firms approach outsourcing and project-based work.

Income as a Driver

Earnings also play an important role in the growth of freelancing. Median incomes for full-time freelancers, reported at around $85,000 in 2024, exceed those of many traditional roles. This income edge helps explain why skilled employees are exploring freelancing as an alternative to standard employment. 

However, higher earnings depend heavily on access to strong networks, specialized expertise, and client relationships. Not every freelancer is positioned to capture the same rewards.

Opportunities and Competition

Another factor driving momentum is the perception of opportunity. With more than 80% of freelancers reporting increased work options in 2025 compared to the prior year, the outlook appears favorable. This trend points to continued entry into the market, though it may also intensify competition. 

Those who refine their branding, develop niche skills, or leverage digital platforms are more likely to stand out, while others may face pricing pressure.

The Role of Education

Education continues to play a role, especially in high-value niches like consulting or advanced technology. Postgraduate degrees remain common among top earners, but traditional credentials are no longer the only gateway. 

The growth of AI, no-code solutions, and microcredentialing is lowering barriers, giving more people the chance to demonstrate skills directly through their work portfolios rather than relying solely on formal qualifications.

Leading Industries and Skills

Here’s where demand is strongest right now, based on Upwork and MBO Partners data:

SectorFast-Growing / High-Value Skills2024–25 MomentumKey Insight
Tech & DataGenerative AI modeling, full-stack development, data engineeringAI-related roles earn ≈ 22% more per hour than traditional tech workShortage of AI expertise drives premium rates.
Marketing & CreativePaid media campaign management, social content, UX/UI design3 of Upwork’s top 5 fastest-growing skills fall in this categoryBrands rely on freelancers for always-on content pipelines.
Professional & Financial ServicesAccounting, FP&A, management consulting, career coaching5.6M independents earn $100K+, up 19% YoYFractional CFOs and high-ticket consultants command premium retainers.
Customer Success & AdminCRM support, virtual assistance, onboardingHigh-value contracts (>$1K) up 31% among large firms (Aug 2025)Firms outsource non-core ops to reduce permanent headcount.
Education & TrainingE-learning design, tutoring, AI-powered micro-coursesGrowth in online learning spend as employers reskill staffTutors and course creators leverage platforms to reach global audiences.

References:

Key Takeaway

The freelance workforce in 2025 is shaped by younger generations and a strong focus on high-skill, knowledge-based roles. Millennials and Gen Z now represent the majority of independent workers, many of whom are building careers in consulting, technology, and creative services.

Earnings potential is rising, especially in areas like AI-driven projects and professional consulting, where six-figure incomes are increasingly common. At the same time, businesses are relying more on independent talent to access expertise without adding to long-term payroll costs.

As remote work, digital tools, and flexible platforms evolve, freelancing is likely to play an even greater role in how Americans work and how companies compete for talent.

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