Gen Z Is Abandoning Conventional 9-to-5 Corporate Jobs for More Diverse, Flexible Careers in Freelancing, According to New Upwork Research
May 14 2024 - 9:00AM
Upwork Inc. (Nasdaq: UPWK), the world’s work marketplace that
connects businesses with independent talent, today released new
research from The Upwork Research Institute revealing the ongoing
growth of freelancing among Gen Z professionals along with their
shifting priorities, expectations, and motivations for work.
A staggering 38% of the U.S. workforce, or 64 million Americans,
performed freelance work in 2023. More than half (52%) of all Gen Z
professionals surveyed freelanced, compared to 44% of Millennials,
30% of Gen X, and 26% of Boomers. As graduation season approaches
and Gen Z represents the fastest-growing generation of workers, the
new study, part of Upwork’s UpNext 2024 campaign, indicates that
this generation is increasingly rejecting conventional 9-to-5 jobs
and fully embracing freelancing as a career choice. The findings
highlight Gen Z’s motivations behind freelancing and career
expectations, helping businesses understand where this talent is
concentrated so they can adapt and effectively leverage top
talent.
For the first time, the research outlines five distinct modes of
freelancing, or “freelance career types”: Portfolio Careerist,
Independent Consultant, Moonlighter, Temporary “Gig” Worker, and
Company Founder. The largest cohort of Gen Z freelancers identifies
as Portfolio Careerists (39%), skilled professionals who manage a
multifaceted portfolio of different types of work across various
clients, industries, and projects.
“Our research shows that the next generation of talent sees the
modern career as much more diversified and dynamic than generations
past. They want freedom, control, and autonomy that allows them to
take advantage of new, distributed ways of working that ultimately
impact their performance and financial stability,” said Kelly
Monahan, managing director of The Upwork Research Institute. “Many
business leaders and professionals associate freelancing solely
with short-term, transactional work; however, it’s much more
complex than that. The five distinct modes of freelancing show us
that each of these work arrangements and preferences has unique
underlying motivators, which inform clear implications for the
evolving hiring landscape.”
Key findings from the report include:
- Majority of Gen Z professionals are choosing freelance
careers over traditional 9-to-5 jobs: More than half (53%)
of Gen Z freelancers are performing freelance work for at least 40
hours per week across a portfolio of different types of work. A
third of Gen Z freelancers who are working these hours have been
doing so for over two years.
- Gen Z has an entrepreneurial mindset when it comes to
work, building more diverse, flexible careers by choice, not
necessity: Although Gen Z professionals across all modes
of freelancing are motivated by financial stability, 70% of Gen Z
freelancers say they freelance to have flexibility in their
schedule; 64% to work in an environment not restricted by the
limitations of age, race, or gender expectations; 64% to work from
the location of their choosing; 62% to be able to pursue work they
are passionate about or find meaningful; and 61% to take more
control over their personal development and career path.
- Gen Z freelancers are prioritizing learning and
adopting new technologies like AI at the highest rate: 51%
of Gen Z professionals overall are adopting generative AI; however,
Gen Z freelancers are adopting at even greater rates (61%),
compared to their Gen Z full-time employee counterparts (41%).
Notably, 39% of Gen Z freelancers have already obtained a specific
certification for AI training.
- “Portfolio Careerist” is the most favored mode of
freelancing among Gen Z freelancers: Across all Gen Z
freelancers, 39% identify as Portfolio Careerists, 26% as
Independent Consultants, 24% as Moonlighters, 7% as Temporary “Gig”
Workers, and 3% as Company Founders.
- Majority of Gen Z freelancers perform skilled
work: Gen Z freelancers are highly skilled, with 45%
performing specialized tasks like computer programming, writing,
and design, while 24% excel as social media experts and
influencers, creating content for others.
For full findings and insights, visit:
https://www.upwork.com/research/gen-z-work-requirements.
For more research from The Upwork Research Institute, visit:
https://www.upwork.com/research.
About the SurveyThe Upwork Research Institute
partnered with Edelman DXI to survey 1,070 U.S. Generation Z
workers, with 560 Gen Zers reporting freelance work and 510
reporting full-time or part-time employment. The survey was fielded
online from October 24, 2023 to November 9, 2023. Correlational
statistical analysis was conducted to determine significant
differences between Gen Z freelancers and their full-time
counterparts. In addition, this dataset was collected as part of
Upwork’s broader Freelance Forward 2023 survey efforts, enabling
comparisons across all generations of workers.
About UpworkUpwork is the world’s work
marketplace that connects businesses with independent talent from
across the globe. We serve everyone from one-person startups to
large, Fortune 100 enterprises with a powerful, trust-driven
platform that enables companies and talent to work together in new
ways that unlock their potential. Our talent community earned over
$3.8 billion on Upwork in 2023 across more than 10,000 skills in
categories including website & app development, creative &
design, data science & analytics, customer support, finance
& accounting, consulting, and operations. Learn more at
upwork.com and join us on LinkedIn, Facebook, Instagram, TikTok and
X.
Contact:Christine Kimpress@upwork.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/9e5ed64a-edfd-416c-a41f-8ed027e48c34
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