Hello and welcome to Work Week, the podcast where we tackle one big question about the rapidly evolving workplace, explore what the research says about the issue, and explain what it all means for you. I’m Dr. Kelly Monahan, Managing Director of The Upwork Research Institute.

On today’s podcast, what you’ll hear are my thoughts and ideas, guided by insights from the Research Institute, and brought to you by a digital proxy of my voice that was created by our team with the help of AI.

In today’s episode, we’re going to look at an issue that’s on the minds of millions: Why does finding a job feel so hard right now? Maybe you’ve sent out hundreds of applications without getting a response. Perhaps the interviews you 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? And more importantly, what can job seekers do to navigate it?

We have yet to see what may come of the current discussions regarding tariffs and how they might affect the job market. But what we can say is that, throughout 2024 and in the first quarter of 2025, the job market existed in a paradox. 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 hand, job seekers have 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. First, job growth is concentrated in specific industries. Second, AI and automation are reshaping hiring needs. Third, employers are becoming increasingly selective. Fourth, remote work has broadened the labor pool. And finally, business leaders are having to make hiring decisions in an uncertain economy. 

Let's look at each point in a little more depth so that we can understand how, together, they are reshaping the labor market.

Issue number one, and these aren’t necessarily in order of importance, is that job growth is concentrated in specific industries. While some sectors, like healthcare and tech, are expanding, other sectors are experiencing hiring freezes or layoffs. Some journalists and even economists have argued that we are in the midst of a white collar recession.

Issue number two is that AI and automation are reshaping hiring needs, and most leaders today are looking for a combination of hard and soft skills. 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, critical thinking, and problem solving that enables collaboration with cross functional teams. People who excel in both areas are hard to find. 

This results in issue number three: Employers are being increasingly 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. Across industries, job openings are remaining unfilled longer than in previous years, as indicated by the increasing "time to hire" metrics. 

For one example, according to The Josh Bersin Company, in 2023 the average time to hire extended to 44 days, up from 43 days the year before. While this might not sound like a lot, this number has been steadily increasing. 

In 2015 the average time to fill, according to The Wall Street Journal, was twenty seven days. That's a nearly 63% increase in less than ten years. And we all know the pain when we are down headcount and still trying to get the same amount of work done.

A fourth reason that work can feel so hard to find even as unemployment rates remain low is that remote work has widened competition. Instead of competing with a local talent pool, candidates are now up against job seekers from all over the country—or even from around the world. In many respects, this is a good thing. As workers learn to navigate this world of work, they’ll find the scope of opportunity has increased exponentially. But, this increase in competition can make it difficult to find a job in their local market.

And finally, we of course can’t ignore the fact that economic fluctuations are causing instability in the job market. Many business leaders are concerned about inflation and a potential recession, and are hesitant to bring on new employees. And in turbulent economic conditions like these, they often look to an alternative talent pool—a talent pool that tends to grow in times of economic stress.

Taken together these five issues—from an unequal concentration of job growth to an uncertain business climate—mean that there is no simple answer to why the job market feels so tough. 

The harsh reality is that there is no one simple answer to these challenges. Instead, what is needed is a paradigm shift. We need to stop thinking of work as taking a job, and start thinking of it as bringing skills to the people who need those skills most.

The traditional approach to employment assumed that job seekers were looking for one stable, full-time role with benefits. But in a world of economic uncertainty, technological disruption, and corporate downsizing, that mindset is too limiting. It asks workers to put their faith in a single company, and it asks companies to rely heavily on the skills of a single worker.

Rather than focusing on full-time employment, the market is already shifting toward thinking about work as a marketplace of skills. This is part of the reason that the news reports that unemployment numbers are low, while many workers report struggling to find a job.

For people struggling to adjust to these new normals, one of the biggest barriers to embracing freelancing is the cultural narrative around work. For decades, a stable job with a single employer was seen as the gold standard of career success.

One reason this paradigm has such a tight hold on our collective imagination is that it’s the model many of our parents and grandparents aspired to, and 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. 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 personal and professional growth.

At the same time, autonomy has become more of a priority. A 2023 study by MBO Partners found that 77% of freelancers say having control over their work is their top motivation. They find the ability to choose projects, set schedules, and define success on their own terms deeply appealing.

They are also redefining security. While full-time employment offers stability, it also carries risk—for example, from layoffs, restructurings, and corporate downsizing. Freelancers, on the other hand, create security by diversifying income sources. If one client ends a contract, others are in motion, giving freelancers greater stability and control over their careers.

And younger generations are leading this shift. As we discussed in episode two, Gen Z and Millennials are driving the freelance economy. Many of them watched their parents struggle through the 2008 financial crisis or experienced job losses of their own during the pandemic. For them, traditional employment doesn’t feel as secure as it did for their parents and grandparents. 

To illustrate this shift, I want to tell you about a real-world success story. Pam Cheney was originally from Canada, where in 2013 she earned a degree in graphic design. At first her career looked fairly traditional; she held a job as an in-house graphic designer for a number of years. 

But this job was in Glasgow, Scotland—far from Pam’s home in Montreal. When that position ended, Pam found that she wasn’t ready for the experiences of living abroad to end with it. She returned to Canada briefly, but then found a new role in New Zealand, where she again stayed for a number of years.

Fast-forward to 2020, and Pam and her partner were just beginning to travel around the world when the pandemic hit. She found herself stuck in Australia with neither a valid work visa nor any job options.

Pam was able to return to New Zealand, but with the COVID lockdowns 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 herself working with clients from around the world, in industries that she felt gave her work meaning. She was not only able to set her own schedule, but was earning twice what she’d been making in her old office jobs.

For Pam and for millions of people like her, freelancing is no longer just a fallback option; it’s their primary career path. According to Upwork’s latest Work Innovator Report, 27% of organizations are combining distributed work, flexible talent strategies, and advanced technology into a 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 talent pool is enabling this shift by increasingly turning to freelance work. Workers are looking for more flexibility, and the kinds of control over their careers that freelance allows. The Upwork Research Institute has seen this shift, reporting that 52% of Gen Zers say they now freelance.

But of course, we must acknowledge that in the absence of traditional hiring practices, the traditional hiring tools and sources for finding talent are absent as well. So how can companies find and access these skilled workers, and vice versa? We've seen a rise in digital platforms that are designed to foster that connection. Marketplaces like Upwork make it easier than ever for freelancers to connect with 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.

As we wrap up this week’s episode of Work Week, I want to end like I always do: by giving you a question to reflect on and an actionable takeaway.

With the reflection question, I want to encourage job seekers who feel they are struggling to find full-time employment to ask themselves about their approach to work. Are you asking, Who will hire me? Or are you asking, What problems can I solve, and who needs my skills?

At the Upwork Research Institute, our data suggests there are a few simple, actionable steps you can take to help make the transition from someone who fills a role to someone who fills a need.

Start by identifying your marketable skills. Take inventory of your strengths. Consider skills you’ve used in previous jobs, hobbies, or volunteer work. Research in-demand freelance skills such as graphic design, copywriting, coding, and digital marketing. Online courses and certifications can help you refine and expand your expertise.

Once you’ve identified your skills, build a portfolio and create work samples that demonstrate them. Even if you’re new to freelancing, you can showcase case studies, passion projects, or pro bono work. A strong portfolio is your best marketing tool.

Showcase these skills on online marketplaces that have real reach. Join platforms like Upwork to connect with potential clients. For each platform, optimize your profile with relevant keywords, craft a compelling pitch, and start with smaller projects to build credibility.

As you get work, develop a professional brand. Your online presence matters. Build a strong LinkedIn profile, engage in industry discussions, and create content that highlights your expertise. A blog, podcast, or YouTube channel can establish you as a thought leader.

As your brand solidifies and work increases, expand your network. Networking is key to landing freelance opportunities. Attend industry events, join online communities, and connect with professionals in your field. Personal referrals often lead to high-quality clients.

And finally, think long term. Freelancing isn’t just about short-term gigs—it can be a sustainable career path. Set financial goals, develop client relationships, and continuously upskill to 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 isn’t the only path to success. Freelancing provides greater control over your career, higher earning potential, and career resilience.

While today’s job market feels frustrating, it’s also evolving. Those who stay adaptable, continue learning, and build strong professional networks will be best positioned for success.

But you don’t have to do it all at once. If you’ve felt frustrated in the current job market, but also feel intimidated at the idea of switching to a portfolio career like freelancing, I encourage you to take one simple action step: Reflect on your career goals and identify one step to adapt—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’s episode of Work Week. I’m Kelly Monahan, hoping you’ll tune in to next week’s episode, when we’ll have the first of a two-part series covering our new annual report, The Future Workforce Index. And if you found this helpful, share it with a friend or leave us a review. See you next time!