Why Freelancing Is the Answer in a Tough Job Market

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Despite headlines touting low unemployment and strong demand for talent, many people are sending out applications by the dozen — with little to no response. Interviews go nowhere. Rejections feel endless. The disconnect is real, and it’s leaving workers to wonder: Why are so many companies advertising job openings, but hiring so few people?

Why finding a job feels so hard right now

If you’re one of the countless people struggling to find work in an economy that supposedly has strong demand, know that you aren’t alone in your frustration. We’re living in a job-market paradox … and the reasons why are complex.

1. Opportunity varies by industry

Different industries are experiencing the economy differently. Some fields, like healthcare and tech, are growing. But others are freezing hiring or implementing layoffs while employers navigate the economic uncertainty and technological disruption driven by artificial intelligence (AI). 

If you’re looking for work in a sector experiencing disruption, landing a job may feel like a Sysiphean task — you send out application after application day in and day out, only to face rejection. This is fueling talk of a “white-collar recession,” where qualified professionals struggle to find roles in the midst of an otherwise healthy economy.

2. Economic anxiety is creating slowdowns

Many companies are worried about inflation and possible wide-scale recession — even those firms that are in booming industries. This makes some hiring managers reluctant to commit to full-time hires that they may not be able to financially support in six months to a year.

3. There’s a new standard for skills

This economic uncertainty leads to a desire for agility. Companies want to find hires who, on paper, might seem like a unicorn: professionals who have strong soft skills, good collaboration techniques, relevant technical or industry skills, and a growing comfort with AI. 

As a result, anyone looking for a new job needs a strong blend of technical know-how and skills in critical thinking and problem solving. And you need to be able to communicate all of this succinctly in a job interview or through your professional portfolio. 

4. Remote work is creating opportunity and competition

When you do find a job you’d like to apply to, the competition is often tougher than before. With so many companies hiring remote workers, it means that you might be up against talent from around the world versus right in your home city. 

On the bright side, though, this means that you can apply to roles in a wider range of locations — without worrying about relocation costs.

5. It’s a hiring manager’s market

Hiring managers are taking longer to make their decision when filling a role, too. Companies are being cautious because they know that they can hold out for a “perfect fit,” even if it means leaving roles unfilled for months. A recent survey revealed that 93% of hiring managers find the hiring process takes longer now than it did in 2023.

Rethinking work: From finding a job to marketing your skills

If today’s hiring landscape feels bleak, or you’re simply tired of the job search grind, it might be time to flip the script. Instead of asking, “Who will hire me?” start asking, “What problems can I solve, and who needs my skills?”

For decades, there was a clear path to career success: Get a full-time job with benefits, stay loyal to the company, and climb the ladder. But that model is losing traction. Between corporate downsizing, rapid automation, and economic unpredictability, many professionals are realizing that placing their career security in one employer’s hands is needlessly risky.

Freelancing offers an alternative — one where you are in control. Rather than relying on a single job, freelancers market their skills directly to the clients who need them. 

Research from The Upwork Research Institute shows that 28% of skilled knowledge workers now operate as freelancers, and 81% of C-suite executives are interested in taking a skills-based approach to hiring.

How one designer built a successful freelance career 

Making the transition from traditional employment to freelancing can feel daunting, but many professionals have found the switch to be worthwhile. 

Pam Cheney, a graphic designer and Squarespace website specialist, went through this process a few years ago. After completing her education in Canada, Pam took an in-house design role in Glasgow, Scotland. She later moved to New Zealand for another full-time role. 

And then the pandemic hit. 

With no office to return to and no local job prospects, Pam made a decision that changed everything: She started freelancing. 

While Pam initially turned to freelance work out of necessity, she soon found that it suited her lifestyle perfectly. She began connecting with clients all around the world and choosing meaningful projects that she felt passionate about working on.

“I’m able to choose the clients that I want to work with and just plan my schedule the way that I want it,” Pam said. “I didn’t think I’d be able to earn as much as I did in an office job, but now I’m earning double what I used to.” 

How to start freelancing

Pam’s story is proof that it’s possible to make the leap into freelancing — especially when traditional paths feel like they’ve stopped working. 

But if the idea still feels daunting, try breaking the process down into smaller steps. You don’t have to figure it all out overnight — but you can start building a more flexible and resilient career today. Here’s how:

1. Identify your most marketable skills

First, take inventory of what you’re good at. Think beyond job titles and focus on what you’ve actually done in past roles, hobbies, or volunteer work. 

Skills like writing, design, coding, marketing, and customer support are always in demand. But so are less obvious strengths, like project management, data analysis, or training. Soft skills are even more important than hard skills in today’s job market. So much so, in fact, that traditional soft skills like communication are now considered “power skills” held by the most in-demand workers and consultants.

2. Build a portfolio

Next, you need a way to show clients what kind of work and results you can produce. If you’re able to, building a portfolio of past projects you’ve done for employers (or in volunteer roles) is a great place to start. 

But if you’re just starting out or you aren’t able to share your past work for confidentiality reasons, you can create specific samples that show off your expertise. Case studies, industry reports, and visuals go a long way in showing clients the kind of results that you can deliver.

3. Join a freelance platform

While there are lots of ways to find freelance work, including through your local and online networks, joining a work marketplace like Upwork makes it easy to build out your project pipeline. Be sure to create a profile that highlights your strengths, uses relevant keywords, and includes a clear, compelling summary of what you offer. 

4. Strengthen your personal brand

At the same time you’re building out your Upwork profile, take a moment to update your other online profiles too. It’s a good idea to:

• Make sure your LinkedIn profile is up-to-date and includes a headline that reflects your new freelance role
• Update your personal social media accounts and create professional profiles specifically for displaying your freelance work 
• Join industry groups online where you can chat with like-minded professionals and grow your network 
• Start a personal website or YouTube channel where you can publish content that highlights your expertise and experience

5. Think long term

As Pam’s story shows, freelancing isn’t just a short-term fix — it can be a sustainable and long-lasting career option. If you’re interested in making a living as a freelancer, remember to:

• Set financial goals and figure out how much you need to earn
• Track your progress — both financially and through the feedback that clients give you 
• Keep learning new skills and techniques that can enhance the ways you support your clients 

As you continue to build your profile as a reliable freelancer, you’ll keep gaining control over your time, income, and professional future.

Make freelancing your path forward

Above all else, remember that you don’t need to have everything figured out in order to start freelancing. You just need to take the first step — and Upwork is a great place to do that. Get started by creating your Upwork account and exploring freelance job opportunities in your industry.