Traditional Employment Declines as Freelance and Fractional Work Rise

U.S. Zoomers in 2025 said they believe traditional employment will disappear. Thirty-nine percent of the same group said they freelance or plan to do so. Freelancing platform Upwork found that 36 percent of full-time workers are considering leaving for independent work. Gen Z made up 28 percent of the freelance workforce as of 2025.

CEOs are planning to increase freelance hiring, according to Fiverr. Fractional job postings, in which professionals divide time across multiple companies, are also increasing. Online gig workers account for 12 percent of the global labor market, the World Bank Group reported.

Vernon, vice president of coaching development at HR firm INTOO, said years of layoffs, reorganizations, AI disruptions, budget cuts and return-to-office mandates have changed worker expectations. "After years of layoffs, reorganizations, AI disruptions, budget cuts and return-to-office mandates, many workers are now realizing that being a W2 employee does not mean they are protected," Vernon said.

Jan Hendrik von Ahlen, founder of JobLeads, said permanent full-time roles still make up the majority of listings on his company's job board. Jason Leverant, president of AtWork, said companies are becoming more flexible in how they access talent. Mike Peditto, founder of Realistic Recruiting, said many senior-level employees have decided to work for themselves after repeated layoffs.

Sam DeMase of ZipRecruiter said employers want to hire based on skills rather than headcount, leading to more specialized roles. "For employees, while fractional, freelance, and consulting career paths can offer freedom and higher earning potential, they also come with the risk of unstable income, no PTO, no benefits and no employer matching retirement support," Vernon said.