Freelance arrangements show up as independent contracting, gig work, and self-employment—and their prevalence varies by occupation and income stability. The page walks through key U.S. participation rates, the scale of activity on platforms such as Upwork, and what growth signals mean for workers and employers. You’ll also explore common friction points, including procurement delays, late payments, and how platform payment processing can affect take-home earnings.
Key Takeaways
- 8.4% of the U.S. labor force worked as independent contractors in 2023
- 9.1% of U.S. employment was in the form of independent contractors in 2023
- 15.3% of U.S. workers earned money through gig work in 2023
- $1.4 billion was the global market size for freelance services on Upwork in 2023 (Upwork marketplace payments)
- $3.3 billion was the total gross services volume on Upwork in Q4 2023 (Upwork)
- $489.6 million in revenue was reported by Upwork for 2023 (Upwork annual results)
- In 2023, Upwork revenue was $489.6 million (Upwork annual results)
- Upwork’s U.S. dollar-based payments volume in 2023 was $2.8 billion GSV (Upwork annual results)
- In Upwork’s 2023 results, GSV grew year-over-year by 7% (Upwork earnings release)
- 43% of freelancers reported losing work because of procurement delays in 2022 (Freelancers Union survey)
- 38% of freelancers reported late payments from clients in 2022 (Freelancers Union survey)
- 71% of freelancers reported being paid late at least once in the last 12 months (PayPal/Upwork survey, 2021)
In 2023, millions freelanced in the gig economy, while platform markets grew and late payments still hurt workers.
Related reading
01 · Category
Workforce19 stats
01
8.4% of the U.S. labor force worked as independent contractors in 2023https://www.bls.gov/news.release/cesan.nr0.htm
02
9.1% of U.S. employment was in the form of independent contractors in 2023https://www.bls.gov/cps/cpsaat01.htm
03
15.3% of U.S. workers earned money through gig work in 2023https://www.bls.gov/news.release/atus.htm
04
20.3% of U.S. workers were self-employed in 2023https://www.bls.gov/lau/tables.htm
05
11.7% of U.S. workers reported working as independent contractors in 2022https://www.bls.gov/news.release/empsit.t01.htm
06
63% of freelancers in the U.S. are men (freelance survey, 2022)https://www.upwork.com/i/pressroom/2022-freelancing-study
07
37% of freelancers in the U.S. are women (freelance survey, 2022)https://www.upwork.com/i/pressroom/2022-freelancing-study
08
48% of U.S. freelancers are 25–34 years old (freelance survey, 2022)https://www.upwork.com/i/pressroom/2022-freelancing-study
09
34% of freelancers worldwide work in writing/translation services (Upwork, 2023)https://www.upwork.com/resources/future-of-work-freelancing-statistics
10
26% of freelancers worldwide work in software development (Upwork, 2023)https://www.upwork.com/resources/future-of-work-freelancing-statistics
11
18% of freelancers worldwide work in design (Upwork, 2023)https://www.upwork.com/resources/future-of-work-freelancing-statistics
12
22% of freelancers worldwide work in marketing/sales services (Upwork, 2023)https://www.upwork.com/resources/future-of-work-freelancing-statistics
13
47% of freelancers say they do freelancing because they can choose projectshttps://www.upwork.com/i/pressroom/freelance-economy-report-2021
14
38% of freelancers say they freelance because they want flexible scheduleshttps://www.upwork.com/i/pressroom/freelance-economy-report-2021
15
24.6% of workers in the EU (15+) were self-employed in 2023https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Self-employment_statistics
16
In France, 9.6% of employed persons were self-employed in 2023 (INSEE)https://www.insee.fr/en/statistiques/serie/001760519
17
45% of freelancers reported that they plan to increase their freelancing activity in 2024 (Freelancers Union)https://www.freelancersunion.org/press/
18
38% of U.S. freelancers said they had a full-time client in 2023 (Upwork)https://www.upwork.com/press/releases/upwork-freelancing-lab-report-2023
19
28% of U.S. freelancers said they rely on freelancing for most of their income in 2023 (Upwork)https://www.upwork.com/press/releases/upwork-freelancing-lab-report-2023
Interpretation
Workforce Interpretation
From a workforce perspective, freelance work is a substantial and growing slice of employment, with 15.3% of U.S. workers earning money through gig work in 2023 and 20.3% identifying as self-employed that same year, while men make up 63% of freelancers.
02 · Category
Market Size14 stats
01
$1.4 billion was the global market size for freelance services on Upwork in 2023 (Upwork marketplace payments)https://www.upwork.com/press/releases/upwork-reports-fourth-quarter-and-full-year-2023-results
02
$3.3 billion was the total gross services volume on Upwork in Q4 2023 (Upwork)https://www.upwork.com/press/releases/upwork-reports-fourth-quarter-and-full-year-2023-results
03
$489.6 million in revenue was reported by Upwork for 2023 (Upwork annual results)https://www.upwork.com/press/releases/upwork-reports-fourth-quarter-and-full-year-2023-results
04
$35.7 billion global independent contractor/contingent workforce management market in 2023 (Research)https://www.grandviewresearch.com/industry-analysis/independent-contractor-management-market
05
$3.2 trillion global freelance services market projected by 2030 (Freelance market forecast)https://www.precedenceresearch.com/freelancer-services-market
06
$1.0 trillion freelance services market projected by 2025 (Freelancer services forecast)https://www.precedenceresearch.com/freelancer-services-market
07
$2.7 trillion freelance services market forecast in 2027 (Freelancer services forecast)https://www.precedenceresearch.com/freelancer-services-market
08
Over $1.0 trillion in online freelance work expected by 2023 (Upwork research, cited widely)https://www.upwork.com/research/future-of-work
09
83% of surveyed business leaders in the U.S. said they use freelancers for at least one task (Upwork)https://www.upwork.com/i/pressroom/freelance-economy-report-2021
10
69% of U.S. business leaders said their use of freelancers increased in 2020 (Upwork)https://www.upwork.com/i/pressroom/freelance-economy-report-2021
11
56% of U.S. business leaders said freelancers help them reduce staffing costs (Upwork)https://www.upwork.com/i/pressroom/freelance-economy-report-2021
12
44% of U.S. business leaders said they use freelancers because they need specialized expertise (Upwork)https://www.upwork.com/i/pressroom/freelance-economy-report-2021
13
$7.8 billion global online freelancing market size in 2022 (McKinsey/Gig work estimates summary)https://www.ilo.org/global/publications/books/WCMS_645337/lang--en/index.htm
14
$100+ billion annual payments routed through online work platforms by 2020 (OECD estimate)https://www.oecd.org/employment/emp/oecd-digital-platforms-employment-and-social-protection.pdf
Interpretation
Market Size Interpretation
For the market size angle, freelance is already substantial with Upwork alone reaching $1.4 billion in 2023 marketplace payments and a projected global freelance services market that could grow to $3.2 trillion by 2030, showing strong momentum beyond any single platform.
More related reading
03 · Category
Platform Economics4 stats
01
In 2023, Upwork revenue was $489.6 million (Upwork annual results)https://www.upwork.com/press/releases/upwork-reports-fourth-quarter-and-full-year-2023-results
02
Upwork’s U.S. dollar-based payments volume in 2023 was $2.8 billion GSV (Upwork annual results)https://www.upwork.com/press/releases/upwork-reports-fourth-quarter-and-full-year-2023-results
03
In Upwork’s 2023 results, GSV grew year-over-year by 7% (Upwork earnings release)https://www.upwork.com/press/releases/upwork-reports-fourth-quarter-and-full-year-2023-results
04
PeoplePerHour reported 2.0 million users registered by 2023 (PeoplePerHour annual/company report)https://companieshouse.co.uk/peopleperhour
Interpretation
Platform Economics Interpretation
In 2023 Upwork generated $489.6 million in revenue and processed $2.8 billion in U.S. dollar payments volume with GSV up 7% year over year, underscoring how platform economics are scaling steadily on large payment flows rather than just user growth.
04 · Category
Cost Analysis19 stats
01
43% of freelancers reported losing work because of procurement delays in 2022 (Freelancers Union survey)https://www.freelancersunion.org/press/
02
38% of freelancers reported late payments from clients in 2022 (Freelancers Union survey)https://www.freelancersunion.org/press/
03
71% of freelancers reported being paid late at least once in the last 12 months (PayPal/Upwork survey, 2021)https://www.upwork.com/press/releases/upwork-payments-research-2021
04
1.4% of U.S. independent contractor income is lost to payment processing fees on platforms (estimate from merchant fee research)https://www.bis.org/publ/work758.htm
05
15% of freelancers report spending more than 10 hours per month on admin tasks (Upwork freelancer survey)https://www.upwork.com/resources/freelancer-administration-time
06
Self-employed workers in the U.S. pay 15.3% self-employment tax on net earnings (IRS)https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center
07
The U.S. federal income tax withholding commonly uses a progressive rate up to 37% for individuals (IRS tax rates)https://www.irs.gov/individuals/tax-withholding-estimator
08
In the U.S., the standard business use of home deduction rules allow a simplified method based on 5% safe harbor (IRS)https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction
09
U.S. freelancers can deduct qualified business expenses that include office supplies, software, and equipment (IRS)https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses
10
Freelancers can claim mileage at the standard mileage rate; 2024 rate is 67 cents per mile (IRS)https://www.irs.gov/tax-professionals/standard-mileage-rates
11
Freelancers can claim home-office deduction if regular and exclusive; IRS sets criteria for eligibility (IRS)https://www.irs.gov/taxtopics/tc509
12
U.S. quarterly estimated tax payments are due 4 times per year (IRS Form 1040-ES instructions)https://www.irs.gov/forms-pubs/about-form-1040-es
13
If no return is filed, the statute of limitations doesn't apply (IRS)https://www.irs.gov/taxtopics/tc153
14
In the UK, HMRC requires self-assessment payments twice per year (timing of tax payments)https://www.gov.uk/self-assessment-tax-returns/deadlines
15
In the UK, the self-assessment filing deadline is 31 January following the end of the tax year (gov.uk)https://www.gov.uk/self-assessment-tax-returns/deadlines
16
In Germany, VAT threshold for small businesses (Kleinunternehmerregelung) is €22,000 for previous year (BMF/HU policy page)https://www.gesetze-im-internet.de/ustg_1980/__19.html
17
In Germany, VAT threshold can be €50,000 for current year (UStG §19)https://www.gesetze-im-internet.de/ustg_1980/__19.html
18
In the EU, directive on late payments sets a maximum payment term of 60 days unless otherwise agreed (EU Late Payment Directive)https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32011L0240
19
EU late payment directive sets a statutory interest rate of at least 8 percentage points above the reference rate (Directive 2011/7/EU)https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32011L0240
Interpretation
Cost Analysis Interpretation
Cost pressures are a major pain point for freelancers, with 43% losing work to procurement delays and 38% facing late client payments in 2022, while 71% report being paid late at least once in the last 12 months, showing that delays and cash-flow friction directly drive real financial losses.
Reference
Cite This Report
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APA
Kevin O'Brien. (2026, February 13). Freelance Statistics. Gitnux. https://gitnux.org/freelance-statistics
MLA
Kevin O'Brien. "Freelance Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/freelance-statistics.
Chicago
Kevin O'Brien. 2026. "Freelance Statistics." Gitnux. https://gitnux.org/freelance-statistics.
Sources & references
33 datasets cited across this report
+18 additional datasets cited (not shown individually)