Forget going back to the office: we live in the age of side hustles

According to Upwork’s new survey of 3,000 adults, 39% of American professionals were freelancers last year, either part-time or full-time. That equates to 60 million Americans, up 3 percentage points since 2021 and a record high since Upwork began conducting this survey from 2014.

In 2021, only 36% of the workforce was freelance. But in 2022, as people continued to want flexibility, freelancing became more appealing and essential. All of this represents a shift in the mindset of the workforce, says Margaret Lilani, vice president of talent solutions at Upwork Wealth.

“Now more than ever, professionals are questioning the old and traditional aspects of work and looking for something better,” she says. “People want to do what they love, have more control over their careers and choose where, when and how they work.”

The autonomous nature of freelancing is becoming more apparent as more and more companies herald a return to office. Even as remote work opportunities dwindle, the desire for the freedom that working from home affords remains appealing – 73% of respondents said flexibility with their schedule was a top reason for taking up freelance work, and 69% reported the same for site flexibility. The idea of ​​being your own boss also appealed to many (0%).

But the real appeal of freelancing is quite simple: money. A majority of respondents (83%) cited making extra money as the top reason for freelancing, and 73% cited being in control of their financial goals and future. With inflation and stagnant wages, more and more Americans are looking for part-time jobs to keep themselves afloat. A Bankrate survey last summer found that more part-time workers were relying on their extra income to pay for their day-to-day expenses than in 2019.

Freelancers are also more likely to be satisfied with their pay than their non-freelance counterparts; Upwork found that while 57% of freelancers were happy with their salary, only 42% of non-freelancers felt the same way.

Perhaps the youngest generations are most likely to engage in freelance work because of their financial situation; 43% of Gen Z and 46% of Millennials said they will be freelancing this year. That makes sense since these generations are more likely to work in entry-level jobs that simply don’t pay enough for current living expenses. While older millennials are midway through their careers and earning more money, they’re also in a high-ticket spending stage of life, from marriages to homeownership. Financial anxiety runs high among these groups, as many do not believe they will ever be able to afford their dream lifestyle.

And Gen Z has proven particularly nervous about a looming recession, likely because the majority of them are experiencing a real downfall for the first time. The youngest generation is best prepared for a potential recession by cutting spending, putting off purchases, finding another job, and working harder and harder than any other generation.

Sure, freelancing is about control and a shift in mindset—but it’s also about being able to pay the bills.

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