April 16, 2025 • 15 mins
Is freelancing your solution to meeting the challenges of the modern job market? Data shows a job market paradox: despite strong employment numbers, job seekers are struggling. In this episode of Work Week, Dr. Kelly Monahan, Managing Director at The Upwork Research Institute, takes a close look at the numbers, breaking down the data to uncover key challenges. We explore why freelancing is becoming a viable and often preferable alternative to traditional employment. From individual success stories to Gen Z’s freelance surge, this episode offers insight into how today’s workers are redefining job security and career success, as well as practical steps to grow your freelance career.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
(inquisitive music)
- Hello and welcome to "Workweek,"
the podcast where wetackle one big question
about the rapidly evolving workplace,
explore what the researchsays about the issue
and explain what it all means for you.
(00:21):
I'm Dr. Kelly Monahan,
managing director of theUpwork Research Institute.
On today's podcast,
what you'll hear are my thoughts and ideas
guided by insights fromthe Research Institute
and brought to you by adigital proxy of my voice
that was created by ourteam with the help of AI.
In today's episode, we'regoing to look at an issue
(00:42):
that's on the minds of millions.
Why does finding a jobfeel so hard right now?
Maybe you've sent outhundreds of applications
without getting a response.
Perhaps the interviewsyou do land go nowhere.
If you feel like the job market
is tougher than ever, you're not alone.
What's behind this hiring slowdown?
(01:02):
And more importantly,
what can job seekers do to navigate it?
We have yet to see what maycome of the current discussions
regarding tariffs and how theymight affect the job market.
But what we can say isthat throughout 2024
and in the first quarter of 2025,
the job market existed in a paradox.
(01:22):
On the one hand, the news has been replete
with stories about strong employment rates
and businesses struggling to find talent,
but on the other seekershave reported months
of applying for roles with little success.
How could both things be true?
And what will that mean moving forward?
Studies reveal five underlying issues.
(01:42):
First, job growth is concentratedin specific industries.
Second, AI and automationare reshaping hiring needs.
Third, employers are becomingincreasingly selective.
Fourth, remote work hasbroadened the labor pool,
and finally, business leaders are having
to make hiring decisionsin an uncertain economy.
(02:05):
Let's look at each pointin a little more depth
so that we can understand
how, together, they arereshaping the labor market.
Issue number one,
and these aren't necessarilyin order of importance,
is that job growth is concentratedin specific industries.
While some sectors,
like healthcare and tech,are expanding, other sectors
(02:26):
are experiencing hiringfreezes or layoffs.
Some journalists and eveneconomists have argued
that we are in the midst ofa white collar recession.
Issue number two is that AI and automation
are reshaping hiring needs.
And most leaders today arelooking for a combination
of hard and soft skills.
(02:47):
Increasingly, candidates need to show
that they have the highly specialized
and technical skills, the hard skills,
that will allow them to leverage AI
to succeed in their role,
but they also need to show
they have the human-centric soft skills
like communication, criticalthinking, and problem-solving
that enables collaborationwith cross-functional teams.
(03:10):
People who excel in bothareas are hard to find.
This results in issue number three,
employers are beingincreasingly selective.
Despite the need to fill open roles,
many companies are looking for candidates
with highly specific skill sets
and are willing to take their time
to make a hiring decision.
(03:30):
Across industries, jobopenings are remaining unfilled
longer than in previous years,
as indicated by the increasingtime-to-hire metrics.
For one example, accordingto the Josh Bersin Company,
in 2023, the average time-to-hire
extended to 44 days up from43 days the year before.
(03:51):
While this might not sound like a lot,
this number has been steadily increasing.
In 2015, the average time-to-fill,
according to the "WallStreet Journal," was 27 days.
That's a nearly 63% increasein less than 10 years.
And we all know the painwhen we are down head count
and still trying to get thesame amount of work done.
(04:12):
A fourth reason that workcan feel so hard to find
even as unemployment rates remain low,
is that remote work haswidened competition.
Instead of competingwith a local talent pool,
candidates are now up against job seekers
from all over the country oreven from around the world.
In many respects, this is a good thing.
(04:34):
As workers learn tonavigate this world of work,
they'll find the scope of opportunity
has increased exponentially,
but this increase in competitioncan make it difficult
to find a job in their local market.
And finally, we of coursecan't ignore the fact
that economic fluctuations
are causing instability in the job market.
Many business leaders are concerned
(04:55):
about inflation and a potential recession
and are hesitant tobring on new employees.
And in turbulent economicconditions like these,
they often look to analternative talent pool,
a talent pool that tends to grow
in times of economic stress.
Taken together, these five issues,
from an unequalconcentration of job growth
(05:15):
to an uncertain business climate,
mean that there is no simple answer
to why the job market feels so tough.
The harsh reality is thatthere is no one simple answer
to these challenges.
Instead, what is neededis a paradigm shift.
We need to stop thinkingof work as taking a job
and start thinking ofit as bringing skills
(05:36):
to the people who need those skills most.
The traditional approachto employment assumed
that job seekers were looking
for one stable full-timerole with benefits.
But in a world of economic uncertainty,
technological disruption,and corporate downsizing,
that mindset is too limiting.
It asks workers to put theirfaith in a single company,
(05:58):
and it asks companies to rely heavily
on the skills of a single worker.
Rather than focusing onfull-time employment,
the market is already shifting
toward thinking about workas a marketplace of skills.
This is part of the reason
that the news reports thatunemployment numbers are low
while many workers reportstruggling to find a job.
(06:19):
For people struggling toadjust to these new normals,
one of the biggest barriersto embracing freelancing
is the cultural narrative around work.
For decades, a stable jobwith a single employer
was seen as the goldstandard of career success.
One reason this paradigm
has such a tight hold onour collective imagination
is that it's the model many of our parents
(06:41):
and grandparents aspired toand that we saw on TV and film.
And the model still holds true
for many well-respected roles,
including in education, medicine,
and the public service sector.
But that narrative is changing.
The rise of freelancing reflects
a larger psychological and social shift
in how people define work and success.
(07:03):
Work identity is becoming more fluid
than it was for older generations.
People no longer see themselves
as employees of one company for life.
Instead, they view their careers
as a series of evolving opportunities
that align with their personaland professional growth.
At the same time, autonomyhas become more of a priority.
(07:25):
A 2023 study by MBO Partners
found that 77% of freelancers
say having control over theirwork is their top motivation.
They find the ability tochoose projects, set schedules,
and define success on theirown terms deeply appealing.
They are also redefining security.
While full-time employmentoffers stability,
(07:47):
it also carries risk, forexample, from layoffs,
restructurings, and corporate downsizing.
Freelancers, on the other hand,
create security bydiversifying income sources.
If one client ends a contract,others are in motion,
giving freelancers greater stability
and control over their careers.
(08:09):
And younger generationsare leading this shift.
As we discussed in episode two,
Gen Z and millennials aredriving the freelance economy.
Many of them watchedtheir parents struggle
through the 2008 financial crisis
or experienced job losses oftheir own during the pandemic.
For them, traditional employmentdoesn't feel as secure
as it did for theirparents and grandparents.
(08:31):
To illustrate this shift,
I wanna tell you about areal-world success story.
Pam Cheney was originally from Canada,
where in 2013, she earneda degree in graphic design.
At first, her careerlooked fairly traditional.
She held a job as anin-house graphic designer
for a number of years.
But this job was in Glasgow, Scotland,
far from Pam's home in Montreal.
(08:52):
When that position ended, Pamfound that she wasn't ready
for the experiences ofliving abroad to end with it.
She returned to Canada briefly,
but then found a new role in New Zealand
where she, again, stayedfor a number of years.
Fast forward to 2020,and Pam and her partner
were just beginning totravel around the world
when the pandemic hit.
She found herself stuck in Australia
(09:14):
with neither a valid workvisa nor any job options.
Pam was able to return to New Zealand,
but with the COVIDlockdowns firmly in place,
she still had no job prospects
and couldn't even really leave the house,
which is when she began to freelance.
Pam soon found herselfworking with clients
from around the world
(09:34):
in industries that shefelt gave her work meaning.
She was not only ableto set her own schedule,
but was earning twicewhat she'd been making
in her old office jobs.
For Pam, and for millionsof people like her,
freelancing is no longerjust a fallback option.
It's their primary career path.
According to Upwork's latestWork Innovator Report,
(09:55):
27% of organizations arecombining distributed work,
flexible talent strategies,
and advanced technology intoa unified operating model.
In part, they're taking this strategy
because it helps them reach
the specialized skills they need.
Rather than hiring full-time employees,
businesses are increasingly turning
to freelancers to fill skill gaps.
At the same time, the talentpool is enabling this shift
(10:18):
by increasingly turning to freelance work.
Workers are looking for more flexibility
and the kinds of controlover their careers
that freelance allows.
The Upwork ResearchInstitute has seen this shift
reporting that 52% of Gen Zerssaying they now freelance.
But of course, we must acknowledge
that in the absence oftraditional hiring practices,
(10:41):
the traditional hiring tools
and sources for findingtalent are absent as well.
So how can companies find andaccess these skilled workers
and vice versa?
We've seen a rise in digital platforms
that are designed tofoster that connection.
Marketplaces like Upworkmake it easier than ever
(11:01):
for freelancers to connectwith clients globally.
Companies are no longer bound
to their local market to find talent.
And the workforce is no longer restricted
to their local market to find work.
(inquisitive music)
As we wrap up this week'sepisode of "Work Week,"
I wanna end like I always do,
(11:23):
by giving you a question to reflect on
and an actionable takeaway.
With the reflection question Iwant to encourage job seekers
who feel they are strugglingto find full-time employment
to ask themselves abouttheir approach to work.
Are you asking, "Who will hire me?"
Or are you asking, "Whatproblems can I solve
(11:44):
and who needs my skills?"
At the Upwork Research Institute,
our data suggests there area few simple actionable steps
you can take to help make the transition
from someone who fills a roleto someone who fills a need.
Start by identifyingyour marketable skills.
Take inventory of your strengths.
Consider skills you've used
(12:04):
in previous jobs, hobbies,or volunteer work.
Research in-demand freelanceskills such as graphic design,
copywriting, coding,and digital marketing.
Online courses and certifications
can help you refine andexpand your expertise.
Once you've identified yourskills, build a portfolio
and create work samplesthat demonstrate them.
(12:24):
Even if you're new to freelancing,
you can showcase casestudies, passion projects,
or pro-bono work.
A strong portfolio isyour best marketing tool.
Showcase these skillson online marketplaces
that have real reach.
Join platforms like Upwork
to connect with potential clients.
For each platform, optimize your profile
(12:45):
with relevant keywords,craft a compelling pitch,
and start with smallerprojects to build credibility.
As you get work, developa professional brand.
Your online presence matters.
Build a strong LinkedIn profile,
engage in industry discussions,
and create content thathighlights your expertise.
A blog, podcast, or YouTube channel
(13:07):
can establish you as a thought leader.
As your brand solidifiesand work increases,
expand your network.
Networking is key to landingfreelance opportunities.
Attend industry events,join online communities,
and connect withprofessionals in your field.
Personal referrals oftenlead to high-quality clients.
(13:29):
And finally, think long-term.
Freelancing isn't justabout short-term gigs,
it can be a sustainable career path.
Set financial goals, developclient relationships,
and continuously upskillto stay competitive
in a rapidly evolving market.
As the job market continues to evolve,
more and more professionals are realizing
that traditional full-time employment
(13:50):
isn't the only path to success.
Freelancing provides greatercontrol over your career,
higher earning potential,and career resilience.
While today's job marketfeels frustrating,
it's also evolving.
Those who stay adaptable,continue learning,
and build strong, professional networks
will be best positioned for success.
(14:10):
But you don't have to do it all at once.
If you felt frustrated inthe current job market,
but also feel intimidated at the idea
of switching to a portfoliocareer like freelancing,
I encourage you to takeone simple action step:
reflect on your career goalsand identify one step to adapt.
(14:30):
Whether it's upskilling,building a freelance profile,
or networking with industry leaders.
Start wherever you feel most comfortable
and grow your career from there.
That's it for today'sepisode of "Work Week."
I'm Kelly Monahan, hoping you'll tune in
to next week's episode
when we'll have the firstof a two-part series
covering our new annual report,
(14:51):
the Future Workforce Index.
And if you found this helpful,
share it with a friendor leave us a review.
See you next time.
(inquisitive music)
- Hello and welcome to "Workweek,"
the podcast where wetackle one big question
about the rapidly evolving workplace,
explore what the researchsays about the issue
and explain what it all means for you.
(00:21):
I'm Dr. Kelly Monahan,
managing director of theUpwork Research Institute.
On today's podcast,
what you'll hear are my thoughts and ideas
guided by insights fromthe Research Institute
and brought to you by adigital proxy of my voice
that was created by ourteam with the help of AI.
In today's episode, we'regoing to look at an issue
(00:42):
that's on the minds of millions.
Why does finding a jobfeel so hard right now?
Maybe you've sent outhundreds of applications
without getting a response.
Perhaps the interviewsyou do land go nowhere.
If you feel like the job market
is tougher than ever, you're not alone.
What's behind this hiring slowdown?
(01:02):
And more importantly,
what can job seekers do to navigate it?
We have yet to see what maycome of the current discussions
regarding tariffs and how theymight affect the job market.
But what we can say isthat throughout 2024
and in the first quarter of 2025,
the job market existed in a paradox.
(01:22):
On the one hand, the news has been replete
with stories about strong employment rates
and businesses struggling to find talent,
but on the other seekershave reported months
of applying for roles with little success.
How could both things be true?
And what will that mean moving forward?
Studies reveal five underlying issues.
(01:42):
First, job growth is concentratedin specific industries.
Second, AI and automationare reshaping hiring needs.
Third, employers are becomingincreasingly selective.
Fourth, remote work hasbroadened the labor pool,
and finally, business leaders are having
to make hiring decisionsin an uncertain economy.
(02:05):
Let's look at each pointin a little more depth
so that we can understand
how, together, they arereshaping the labor market.
Issue number one,
and these aren't necessarilyin order of importance,
is that job growth is concentratedin specific industries.
While some sectors,
like healthcare and tech,are expanding, other sectors
(02:26):
are experiencing hiringfreezes or layoffs.
Some journalists and eveneconomists have argued
that we are in the midst ofa white collar recession.
Issue number two is that AI and automation
are reshaping hiring needs.
And most leaders today arelooking for a combination
of hard and soft skills.
(02:47):
Increasingly, candidates need to show
that they have the highly specialized
and technical skills, the hard skills,
that will allow them to leverage AI
to succeed in their role,
but they also need to show
they have the human-centric soft skills
like communication, criticalthinking, and problem-solving
that enables collaborationwith cross-functional teams.
(03:10):
People who excel in bothareas are hard to find.
This results in issue number three,
employers are beingincreasingly selective.
Despite the need to fill open roles,
many companies are looking for candidates
with highly specific skill sets
and are willing to take their time
to make a hiring decision.
(03:30):
Across industries, jobopenings are remaining unfilled
longer than in previous years,
as indicated by the increasingtime-to-hire metrics.
For one example, accordingto the Josh Bersin Company,
in 2023, the average time-to-hire
extended to 44 days up from43 days the year before.
(03:51):
While this might not sound like a lot,
this number has been steadily increasing.
In 2015, the average time-to-fill,
according to the "WallStreet Journal," was 27 days.
That's a nearly 63% increasein less than 10 years.
And we all know the painwhen we are down head count
and still trying to get thesame amount of work done.
(04:12):
A fourth reason that workcan feel so hard to find
even as unemployment rates remain low,
is that remote work haswidened competition.
Instead of competingwith a local talent pool,
candidates are now up against job seekers
from all over the country oreven from around the world.
In many respects, this is a good thing.
(04:34):
As workers learn tonavigate this world of work,
they'll find the scope of opportunity
has increased exponentially,
but this increase in competitioncan make it difficult
to find a job in their local market.
And finally, we of coursecan't ignore the fact
that economic fluctuations
are causing instability in the job market.
Many business leaders are concerned
(04:55):
about inflation and a potential recession
and are hesitant tobring on new employees.
And in turbulent economicconditions like these,
they often look to analternative talent pool,
a talent pool that tends to grow
in times of economic stress.
Taken together, these five issues,
from an unequalconcentration of job growth
(05:15):
to an uncertain business climate,
mean that there is no simple answer
to why the job market feels so tough.
The harsh reality is thatthere is no one simple answer
to these challenges.
Instead, what is neededis a paradigm shift.
We need to stop thinkingof work as taking a job
and start thinking ofit as bringing skills
(05:36):
to the people who need those skills most.
The traditional approachto employment assumed
that job seekers were looking
for one stable full-timerole with benefits.
But in a world of economic uncertainty,
technological disruption,and corporate downsizing,
that mindset is too limiting.
It asks workers to put theirfaith in a single company,
(05:58):
and it asks companies to rely heavily
on the skills of a single worker.
Rather than focusing onfull-time employment,
the market is already shifting
toward thinking about workas a marketplace of skills.
This is part of the reason
that the news reports thatunemployment numbers are low
while many workers reportstruggling to find a job.
(06:19):
For people struggling toadjust to these new normals,
one of the biggest barriersto embracing freelancing
is the cultural narrative around work.
For decades, a stable jobwith a single employer
was seen as the goldstandard of career success.
One reason this paradigm
has such a tight hold onour collective imagination
is that it's the model many of our parents
(06:41):
and grandparents aspired toand that we saw on TV and film.
And the model still holds true
for many well-respected roles,
including in education, medicine,
and the public service sector.
But that narrative is changing.
The rise of freelancing reflects
a larger psychological and social shift
in how people define work and success.
(07:03):
Work identity is becoming more fluid
than it was for older generations.
People no longer see themselves
as employees of one company for life.
Instead, they view their careers
as a series of evolving opportunities
that align with their personaland professional growth.
At the same time, autonomyhas become more of a priority.
(07:25):
A 2023 study by MBO Partners
found that 77% of freelancers
say having control over theirwork is their top motivation.
They find the ability tochoose projects, set schedules,
and define success on theirown terms deeply appealing.
They are also redefining security.
While full-time employmentoffers stability,
(07:47):
it also carries risk, forexample, from layoffs,
restructurings, and corporate downsizing.
Freelancers, on the other hand,
create security bydiversifying income sources.
If one client ends a contract,others are in motion,
giving freelancers greater stability
and control over their careers.
(08:09):
And younger generationsare leading this shift.
As we discussed in episode two,
Gen Z and millennials aredriving the freelance economy.
Many of them watchedtheir parents struggle
through the 2008 financial crisis
or experienced job losses oftheir own during the pandemic.
For them, traditional employmentdoesn't feel as secure
as it did for theirparents and grandparents.
(08:31):
To illustrate this shift,
I wanna tell you about areal-world success story.
Pam Cheney was originally from Canada,
where in 2013, she earneda degree in graphic design.
At first, her careerlooked fairly traditional.
She held a job as anin-house graphic designer
for a number of years.
But this job was in Glasgow, Scotland,
far from Pam's home in Montreal.
(08:52):
When that position ended, Pamfound that she wasn't ready
for the experiences ofliving abroad to end with it.
She returned to Canada briefly,
but then found a new role in New Zealand
where she, again, stayedfor a number of years.
Fast forward to 2020,and Pam and her partner
were just beginning totravel around the world
when the pandemic hit.
She found herself stuck in Australia
(09:14):
with neither a valid workvisa nor any job options.
Pam was able to return to New Zealand,
but with the COVIDlockdowns firmly in place,
she still had no job prospects
and couldn't even really leave the house,
which is when she began to freelance.
Pam soon found herselfworking with clients
from around the world
(09:34):
in industries that shefelt gave her work meaning.
She was not only ableto set her own schedule,
but was earning twicewhat she'd been making
in her old office jobs.
For Pam, and for millionsof people like her,
freelancing is no longerjust a fallback option.
It's their primary career path.
According to Upwork's latestWork Innovator Report,
(09:55):
27% of organizations arecombining distributed work,
flexible talent strategies,
and advanced technology intoa unified operating model.
In part, they're taking this strategy
because it helps them reach
the specialized skills they need.
Rather than hiring full-time employees,
businesses are increasingly turning
to freelancers to fill skill gaps.
At the same time, the talentpool is enabling this shift
(10:18):
by increasingly turning to freelance work.
Workers are looking for more flexibility
and the kinds of controlover their careers
that freelance allows.
The Upwork ResearchInstitute has seen this shift
reporting that 52% of Gen Zerssaying they now freelance.
But of course, we must acknowledge
that in the absence oftraditional hiring practices,
(10:41):
the traditional hiring tools
and sources for findingtalent are absent as well.
So how can companies find andaccess these skilled workers
and vice versa?
We've seen a rise in digital platforms
that are designed tofoster that connection.
Marketplaces like Upworkmake it easier than ever
(11:01):
for freelancers to connectwith clients globally.
Companies are no longer bound
to their local market to find talent.
And the workforce is no longer restricted
to their local market to find work.
(inquisitive music)
As we wrap up this week'sepisode of "Work Week,"
I wanna end like I always do,
(11:23):
by giving you a question to reflect on
and an actionable takeaway.
With the reflection question Iwant to encourage job seekers
who feel they are strugglingto find full-time employment
to ask themselves abouttheir approach to work.
Are you asking, "Who will hire me?"
Or are you asking, "Whatproblems can I solve
(11:44):
and who needs my skills?"
At the Upwork Research Institute,
our data suggests there area few simple actionable steps
you can take to help make the transition
from someone who fills a roleto someone who fills a need.
Start by identifyingyour marketable skills.
Take inventory of your strengths.
Consider skills you've used
(12:04):
in previous jobs, hobbies,or volunteer work.
Research in-demand freelanceskills such as graphic design,
copywriting, coding,and digital marketing.
Online courses and certifications
can help you refine andexpand your expertise.
Once you've identified yourskills, build a portfolio
and create work samplesthat demonstrate them.
(12:24):
Even if you're new to freelancing,
you can showcase casestudies, passion projects,
or pro-bono work.
A strong portfolio isyour best marketing tool.
Showcase these skillson online marketplaces
that have real reach.
Join platforms like Upwork
to connect with potential clients.
For each platform, optimize your profile
(12:45):
with relevant keywords,craft a compelling pitch,
and start with smallerprojects to build credibility.
As you get work, developa professional brand.
Your online presence matters.
Build a strong LinkedIn profile,
engage in industry discussions,
and create content thathighlights your expertise.
A blog, podcast, or YouTube channel
(13:07):
can establish you as a thought leader.
As your brand solidifiesand work increases,
expand your network.
Networking is key to landingfreelance opportunities.
Attend industry events,join online communities,
and connect withprofessionals in your field.
Personal referrals oftenlead to high-quality clients.
(13:29):
And finally, think long-term.
Freelancing isn't justabout short-term gigs,
it can be a sustainable career path.
Set financial goals, developclient relationships,
and continuously upskillto stay competitive
in a rapidly evolving market.
As the job market continues to evolve,
more and more professionals are realizing
that traditional full-time employment
(13:50):
isn't the only path to success.
Freelancing provides greatercontrol over your career,
higher earning potential,and career resilience.
While today's job marketfeels frustrating,
it's also evolving.
Those who stay adaptable,continue learning,
and build strong, professional networks
will be best positioned for success.
(14:10):
But you don't have to do it all at once.
If you felt frustrated inthe current job market,
but also feel intimidated at the idea
of switching to a portfoliocareer like freelancing,
I encourage you to takeone simple action step:
reflect on your career goalsand identify one step to adapt.
(14:30):
Whether it's upskilling,building a freelance profile,
or networking with industry leaders.
Start wherever you feel most comfortable
and grow your career from there.
That's it for today'sepisode of "Work Week."
I'm Kelly Monahan, hoping you'll tune in
to next week's episode
when we'll have the firstof a two-part series
covering our new annual report,
(14:51):
the Future Workforce Index.
And if you found this helpful,
share it with a friendor leave us a review.
See you next time.
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