Founder decisions

Nearly Half the Workforce Freelances Now

You're staffing a project and the talent pool looks different. Close to half the people who can do the work now sell it by the project, not the job.

Nearly Half the Workforce Freelances Now
Illustration · Deimar Gutiérrez

The full-time hire stopped being the default, and most owners have not updated their staffing model to match. Upwork reported that 41.8% of the US workforce freelanced in the past year. That is close to half the labor pool selling work by the project instead of the salary. The pond shrank. If your only tool for getting work done is a job posting, you're fishing in the smaller half of it.

What changed

Three shifts matter for anyone hiring or selling gig work.

Remote work went from perk to baseline. Distance stopped mattering. The tools let a specialist deliver from anywhere with a connection. That widens your talent map to the whole country, and often past it. It also means your competitors reach the same people.

Soft skills climbed the list. LinkedIn's 2021 report ranked creativity, persuasion, collaboration, adaptability, and emotional intelligence as the top in-demand soft skills. A contractor who communicates cleanly and adapts fast beats one with a slightly better portfolio and no follow-through.

Personal brand turned into table stakes. A freelancer now sells through a site, a portfolio, and a visible track record. A FreshBooks survey found that most freelancers rate a strong web presence as very important to their work. When you vet a contractor, that presence is your first data point. The same logic runs the other way for your own company, which is the case for telling your brand's story well.

How to work with it

Two moves carry most of the weight, whether you're hiring gig talent or running as one.

Diversify the work. A freelancer who leans on one client is one email away from zero revenue. An owner who leans on one contractor is one dropout away from a stalled project. Spread the risk on both sides.

Protect the relationships. Clear scope, frequent updates, and delivery on the promised date are what turn a one-off gig into a standing arrangement. Upwork's 2022 report found that freelancers with strong client relationships hold better rates and steadier work. The reverse is true too. Contractors talk, and a fair client gets first call on the good ones. The screening problem starts earlier, which is why common hiring mistakes apply to contractors as much as to staff.

Brian Chesky is the outsized version of the pattern. He and his co-founders could not make San Francisco rent in 2008, so they rented out air mattresses to conference-goers. That side gig became Airbnb. By the time it went public, its valuation ran into the hundreds of billions. The lesson is smaller than the number. Start where you are. A real need, met with an odd solution, can outrun the job it replaced.

Where to find the talent

The marketplaces sort roughly by how much they screen. Pick by how much vetting you want to do yourself.

  • Upwork and Freelancer.com: broad pools across development, design, writing, and support, with time tracking and invoicing built in. You do the vetting.
  • Fiverr: productized services at fixed prices, ranked by buyer feedback. Good for small, well-defined jobs.
  • Toptal: pre-screened developers, designers, and finance talent. You pay more and skip most of the vetting.
  • Guru and PeoplePerHour: mid-sized pools for web, design, writing, and marketing, with milestone payments and feedback scores.
  • 99designs: a design-only pool for logos, sites, and packaging, run as briefs and contests.
  • SimplyHired: a search engine for freelance and part-time listings, useful for scanning the market rather than hiring inside a platform.

Step back and the trend is not about freelancers at its core. It's about how work gets priced and bought. The salary bundled a person's time, loyalty, and availability into one number. The gig market unbundles all three and prices them apart. Whether you hire that way or sell that way, the model you inherited assumed a pool that is now half the size. Build for the pool that exists.