The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond

2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 1 of 14 https://www.upwork.com/research/future-workforce-index-2025 Resources Research The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Apr 23, 2025 By Gabby Burlacu and Kelly Monahan Executive summary 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. In this new annual report, The Upwork Research Institute surveyed 3,000 skilled knowledge workers 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 roles. This trend is poised to accelerate: 36% of knowledge workers who currently hold full-time jobs are considering freelancing, and Gen Z Share Future of Work Insights Research Resource Center New? Learn how to start freelancing or hire freelancers. Categories Content Types Featured More Pricing For enterprise My dashboard Hire freelancers Find work Why Upwork What's new -- 1 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 2 of 14 https://www.upwork.com/research/future-workforce-index-2025 is overwhelmingly choosing independent work. Skilled 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 non-traditional talent models, our 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 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: aging 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? Our 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, we find that more than one in four (28%) works in a freelance or non-traditional 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 USD in earnings in 2024, earned by the roughly 20 million workers who performed this kind of work in the United States. Across functions and occupations like writing, creative design, and IT and development, full- time freelancers out-earned their full-time employee (FTE) counterparts, earning a median income of $85,000. Skilled moonlighters, who performed 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, our data suggests they are finding value in reshaping their careers and working outside of the traditional organizational boundaries. 1 2 -- 2 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 3 of 14 https://www.upwork.com/research/future-workforce-index-2025 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, we need to point out that different skilled freelancers approach and manage their work differently. Our 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. -- 3 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 4 of 14 https://www.upwork.com/research/future-workforce-index-2025 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. -- 4 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 5 of 14 https://www.upwork.com/research/future-workforce-index-2025 Across these modes of working, skilled freelancers are finding a 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 working non-traditionally 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 tell us 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. 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 (a) has expertise in fast-growing areas, (b) continuously learns and applies new skills, (c) is proficient in using emerging technology like AI to enhance and amplify their work, (d) possesses uniquely human skillsets that are becoming increasingly critical as the workforce shifts to managing and working alongside AI agents, and (e) is motivated and energized to grow their career in a changing world of work. 3 -- 5 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 6 of 14 https://www.upwork.com/research/future-workforce-index-2025 We found that 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 one in three (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 three (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 -- 6 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 7 of 14 https://www.upwork.com/research/future-workforce-index-2025 (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 multi-modal 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 they are 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 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 one in two (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. -- 7 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 8 of 14 https://www.upwork.com/research/future-workforce-index-2025 Uniquely human skillsets 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. 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 skillset—notably, more are experts in problem solving (49%, vs. 44% of FTEs), clear communication (47%, vs. 40% of FTEs), critical thinking (43%, vs. 38%), 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, but the truth is, many workers are entering the future of work on fumes. Seventy-one percent of full-time employees report being burned out. Experience in key areas and proficiency in emerging skillsets 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— 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 skillsets are more in demand than ever. Figure 5. -- 8 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 9 of 14 https://www.upwork.com/research/future-workforce-index-2025 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, one in two 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 non-traditional talent pools both widens the net for accessing skilled talent and also grows revenue. In an analysis of publicly traded US-based organizations, we found that high revenue growth companies—those in the top 25% of year-over-year growth—are more likely to embed non-traditional 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. We’ve previously shared how 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. -- 9 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 10 of 14 https://www.upwork.com/research/future-workforce-index-2025 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 three (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 will make up 30% of the US 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. -- 10 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 11 of 14 https://www.upwork.com/research/future-workforce-index-2025 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 ten. 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 that we’ve entered a new era when it comes to our 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. Upwork Research Institute Quarterly B2B Pulse survey, n=500 C-level executives Please see Methodology section for more information The Future Workforce Index was developed through an extensive literature review and validated with internal subject matter experts Methodology The Upwork Research Institute conducted a survey of 3,000 skilled, US- based knowledge workers in December 2024-February 2025. Skilled workers were determined by first targeting a representative sample of US 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% 1 2 3 -- 11 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 12 of 14 https://www.upwork.com/research/future-workforce-index-2025 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 US 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 US 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 US-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. About The Upwork Research Institute The world of work is not the same as it was just a few years ago and leaders are facing brand new challenges as a result. The old work playbook is gone, and in its place, there are debates and decisions around workforce location, worker arrangements, and flexibility. However, leaders do not need to navigate this new world of work on their own. The Upwork Research Institute is committed to studying the fundamental shifts in the workforce and providing business leaders with the tools and insights they need to navigate the here and now while preparing their organization for the future. Using our proprietary platform data, global survey research, partnerships, and academic collaborations, we will produce evidence-based insights to create the blueprint for the new way of work. About the authors Gabby Burlacu Dr. Gabby Burlacu is Senior Research Manager at Upwork, where she studies how organizations are adjusting their cultures and talent practices to access skilled talent in a rapidly evolving world of work. Her research has been featured in a variety of peer-reviewed studies, articles, book chapters, and media outlets, and has informed strategy and technology development across a range of Fortune 500 companies. Gabby holds a Ph. D. in industrial-organizational psychology from Portland State University. Kelly Monahan Dr. Kelly Monahan is the Founder and Managing Director of the Upwork Research Institute, where she leads research on emerging technologies, remote workforce strategies, and fostering inclusive cultures for non- traditional talent like freelancers. With over a decade of experience in future of work research, her work focuses on delivering actionable -- 12 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 13 of 14 https://www.upwork.com/research/future-workforce-index-2025 insights to help organizations adapt to the evolving world of work. Kelly is the author of two books, including the USA Today bestseller Essential, and How Behavioral Economics Influences Management Decision-Making: A New Paradigm. She holds a B.S. from Rochester Institute of Technology, an M.S. from Roberts Wesleyan College, and a Ph.D. in organizational leadership from Regent University. Acknowledgements The Upwork Research Institute would like to thank our partners who have given their expertise to make this research possible. In particular, McGuire Research, Beresford Research, Ryan Clark, Melissa Hong, Keyola Panza, and Marcus Grimm. Recommended research -- 13 of 14 -- 2/16/26, 13:23 The Future Workforce Index: Evolving Talent Trends in 2025 and Beyond Page 14 of 14 https://www.upwork.com/research/future-workforce-index-2025 Join the world's work marketplace Find great talent. Find great work. Are you ready to move your business or career forward? 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