There was a time when freelancing was considered a niche career path or something that workers did on the side to bring in extra cash. In 2026, however, that’s no longer the case. Recent data shows that independent work represents a meaningful share of the U.S. labor market, and those trends are likely to continue.

We took a look at stats from outlets like Upwork, MBO Partners, the Federal Reserve, the U.S. Census Bureau, and the U.S. Bureau of Labor Statistics to compile what experts are seeing as the self-employment movement continues to gain traction.   

The big picture is clear: Self-employment and freelancing remain a major part of how Americans work, earn money, and prioritize flexibility. The statistics below break down what current data says about freelance work, income, work-life balance, demographics, and where the independent workforce may be headed next.

Freelance Workforce Statistics

1. 64 Million Americans Freelanced in 2023

Upwork’s Freelance Forward 2023 study found that 64 million Americans had done freelance work in the past year.

2. That Represented 38% of the U.S. Workforce

According to that same Upwork study, more than one-third of the entire U.S. workforce freelanced in 2023.

3. MBO Partners Counted 72.7 Million Independent Workers in 2024

MBO Partners uses a slightly different definition of “freelancer” than Upwork because it includes a broader pool of independent workers, not just people who freelanced in the past year. The firm found that in 2024, the total freelance market was even larger.

4. Full-Time Independent Work Kept Growing in 2024

MBO also reported that there were 27.7 million full-time independents in 2024, up 6.5% from 2023.

5. The U.S. Had 29.8 Million Nonemployer Businesses in 2022

Per the U.S. Census Bureau, these are businesses with no paid employees that are still subject to federal income tax.

6. Those Nonemployer Businesses Generated $1.7 Trillion in Receipts

The Census Bureau also noted that this amounted to about 6.8% of the U.S. economy in 2022.

7. There Were 9.1 Million Unincorporated Self-Employed Nonagricultural Workers in 2023

The BLS reported this data from the fourth quarter of 2023.

8. The Nonagricultural Self-Employment Rate Was 5.7% in Q4 2023

Per the BLS, that was similar to the 5.8% rate at the end of 2022.

Taken together, these figures show that independent work is no longer on the fringes. It is a large and durable part of the labor market, even if different datasets capture different slices of it.

Freelancer Income Statistics

9. Freelancers Contributed $1.27 Trillion to the U.S. Economy in 2023

That number comes from Upwork’s Freelance Forward 2023 research.

10. Skilled Knowledge Freelancers Generated Over $1.5 Trillion in 2024

This is according to Upwork’s 2025 Future Workforce Index.

11. More Than 1 in 4 U.S. Skilled Knowledge Workers Now Work Independently

Upwork put that figure at 28% in 2024.

12. Full-Time Skilled Knowledge Freelancers Report a Median Income of $85,000

Upwork notes that this was higher than the $80,000 median for comparable full-time employees in 2024.

13. Income Can Be More Volatile for Self-Employed Workers

The Federal Reserve found that 56% of self-employed adults said their income varied from month to month, compared with 26% of employees who worked for someone else.

Volatility is one of the biggest financial tradeoffs in self-employment. The ceiling can be higher, but the month-to-month experience may be less predictable.

Work-Life Balance and Quality-of-Life Statistics

14. 84% of Full-Time Independents Say They Are Happier Working on Their Own

That comes from MBO Partners’ 2024 State of Independence report.

15. 79% Say Independent Work Is Better for Their Health

MBO reported that nearly eight in 10 full-time independents felt working on their own was better for their health.

16. 65% Say They Feel More Secure Working Independently

That is notable because independent work has historically been seen as less secure than payroll employment.

17. 35% of Self-Employed Workers Worked Entirely From Home in 2024

The Federal Reserve compared that with 16% of employees who worked entirely from home.

These numbers suggest that flexibility is a key draw in self-employment and is tied to real improvements in mental and physical well-being. At the same time, those benefits exist alongside more variable income and the loss of employer-sponsored benefits.

Demographic Statistics on Who Freelances

18. 52% of Gen Z Professionals Freelanced in 2023

Upwork reported that Gen Z had the highest freelance participation rate of any generation in its survey.

19. 44% of Millennials Freelanced in 2023

Millennials remained a large part of the freelance workforce as well, per Upwork.

20. 30% of Gen X Professionals Freelanced in 2023

Upwork found that participation dropped with age, but freelance work still spans multiple generations.

21. 26% of Baby Boomers Freelanced in 2023

Though it’s a smaller percentage, this shows that freelance work is far from being only a Gen Z or millennial phenomenon.

22. 38% of Workers Over 65 Who Are Still in the Workforce Are Independent Workers

MBO’s 2024 report highlights how common independence is among older workers as well.

23. 42.7% of Nonemployer Businesses Were Women-Owned in 2022

The Census Bureau reported that women owned 12.7 million of the nation’s 29.8 million nonemployer businesses.

These numbers show that freelancing is not limited to one life stage. It is attracting younger workers looking for flexibility and older workers who want more control over how they earn.

Why People Choose Self-Employment

24. 61% of Independent Workers Said Working Independently Was Completely Their Choice in 2024

MBO reported that only 10% said independent work was the result of factors beyond their control.

25. 54% of Full-Time Independents Said They Would Not Go Back to a Traditional Job

That suggests independent work is not just a fallback for many workers, but a preferred long-term path.

This may be one of the most important takeaways in the whole round-up. While freelance work is often discussed as a backup plan or side hustle, a large share of independent workers appear to see it as a career choice they actively want to keep.

AI and Future-of-Work Statistics for Freelancers

26. AI-Related Freelance Work Is Growing Quickly

Upwork reported that AI-related work gross services volume grew 60% year over year in 2024.

27. Independent Workers Are Also Using AI More Often

MBO said 65% of independents used AI tools in 2024, up from 37% in 2023.

The takeaway here is more nuanced than “AI is replacing freelancers.” This data suggests many independent workers are using AI to become more productive and stay competitive in a market that’s changing quickly.

Final Thoughts

Freelancing and self-employment continue to grow not just in legitimacy, but in economic impact, too. Recent statistics show a workforce that is large, increasingly skilled, and often happier with the tradeoffs than outside observers might expect. But they also show why personal finance is such an important part of the conversation. When your income is more flexible, your financial systems have to be stronger, too. 

FAQ

How Many People Freelance in the U.S.?

Different outlets report different numbers. Upwork reported that 64 million Americans freelanced in 2023, which represented 38% of the U.S. workforce. Other reports show higher totals because they use broader definitions of independent work. For example, MBO Partners reported 72.7 million independent workers in 2024.

What Is the Self-Employment Rate in the U.S.?

The Bureau of Labor Statistics reported a 5.7% nonagricultural self-employment rate in the fourth quarter of 2023. That figure refers specifically to unincorporated self-employed workers in nonagricultural jobs, so it is narrower than broader freelance and independent-work estimates. 

Do Freelancers Earn More Than Employees?

It really depends on the kind of work, but Upwork found that people earning exclusively through freelance knowledge work reported a median income of $85,000, compared with $80,000 for full-time employees. At the same time, the Federal Reserve found that self-employed adults were much more likely than employees to report month-to-month income variation. 

Are Freelancers Happier Than Traditional Employees?

Recent survey data suggests many are. MBO Partners found that 84% of full-time independents said they were happier working independently, 79% said it was better for their health, and 65% said they felt more secure working that way.

Is Freelancing Growing?

Yes. MBO Partners reported 27.7 million full-time independents in 2024, up 6.5% from 2023, and Upwork found that skilled knowledge freelancers generated more than $1.5 trillion in earnings in 2024.

Why Do People Choose Self-Employment?

It mostly comes down to autonomy and flexibility. MBO Partners found that 61% of independent workers said working independently was completely their choice, and 54% of full-time independents said they would not go back to a traditional job. 

What Are the Biggest Financial Downsides of Freelancing?

The biggest challenge is usually living on a variable income. The Federal Reserve found that 59% of self-employed adults said their income varied from month to month, compared with 28% of employees. Freelancers also have to cover their own taxes, health insurance, retirement contributions, and time off.

Is Gen Z Freelancing More Than Older Generations?

Yes. Upwork reported that 52% of Gen Z professionals freelanced in 2023, compared with 44% of millennials, 30% of Gen X, and 26% of baby boomers.

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