Are you curious about freelancing? Continue reading and explore the top 10 Upwork statistics that define Upwork's role in this ever-evolving ecosystem in 2023.
What is Upwork?
The platform was born of the merger between two freelancing pioneers, Elance and oDesk, culminating in the birth of Upwork in 2015.
Eight years later, with thousands of freelancers and clients, the platform empowers businesses of all sizes, from startups to Fortune 100 giants, to access the talent they need while offering workers the flexibility they crave.
Upwork Business Statistics
As gig jobs become more popular, Upwork is a big player in the game in an industry that in the U.S. is worth around $1.5 trillion.
The marketplace has been a public company for five years, with employees in 42 countries—350 total, and all about remote work.
Let's check out the numbers that tell us how Upwork has grown.
1. In 2022, Upwork generated $566.6 million in revenue
In 2022, Upwork reported $566.6 million in revenue. This significant stream was underpinned by the contribution of U.S. talent, accounting for 26% of the total earnings.
However, as the company outlined in a report, Upwork has acknowledged concerns about potential intellectual property issues linked to its users' use of generative artificial intelligence (AI) and how it would threaten its business.
2. Upwork's 2022 revenue reflected a 23% increase over 2021
10 Upwork Statistics to Explore the Freelancing Landscape in 2023
In 2023, platforms like Upwork have transformed how professionals connect with opportunities. This online marketplace bridges developers, writers, marketers, and clients seeking diverse talents.
Despite Upwork's 2022 revenue growing 23% over 2021, the company reported a net loss of $89.9 million for the year (a 60% increase compared to the previous one.)
However, transaction volume across the platform reached $4.1 billion, marking a 16% increase from 2021, suggesting potential pricing adjustments on Upwork's services to drive revenue growth.
3. Upwork operates in 178 countries
Today, Upwork is available across 178 countries, offering its marketplace for talent and clients to collaborate. However, due to the ongoing Ukraine conflict, the platform no longer operates in Russia and Belarus as it used to.
It's important to note that legal limitations apply on the platform, and that is why it cannot connect with individuals or businesses in specific regions such as:
- North Korea
- Cuba (individual nationals included)
- Luhansk People's Republic (LPR) residents
- Donetsk People's Republic (DPR).
Additionally, returning may not be an option if you've previously faced suspension on the platform, as new accounts will be swiftly closed.
4. The platform has 814,000 active buyers in 2023
As of 2023, Upwork boasts around 814,000 active buyers. These are individuals and businesses actively seeking freelancers for various projects on the platform.
For freelancers, the process is pretty simple. They create a profile, search for job listings that match their skills, send proposals for gigs they're interested in, and if they get the job, they complete it within the agreed deadlines and get paid.
Freelancing Statistics in 2023
The gig economy, powered by technology, has given a fresh spin to freelance work. Companies like Uber or TaskRabbit have transformed how people connect for work, making it easier to find jobs and earn money.
But it's not just about gig jobs. More professionals are branching out, looking for multiple ways to make extra income. In 2022, 37% of U.S. professionals had various jobs or contracts. That could mean having two part-time jobs or mixing a full-time position with freelancing.
Let's explore the stats that reveal this evolving work landscape.
5. Upwork has around 12 million freelancers in 2023
According to the Oxford Internet Institute, more than 163 million people earn income from digital labor platforms, showing a five-fold increase over the last decade.
Upwork, a popular platform among 12 million freelancers, where 54.77% are males and 45.23% females, plays a significant role in this trend.
6. 39.75% of Upwork's traffic comes from young adults between 25 and 34
When it comes to Upwork's user base, it's the young adults who are taking the lead. According to Similarweb data, a substantial 39.75% of the website's traffic is generated by individuals aged 25 to 34.
However, the platform also appeals to the 35 to 44-year-old demographic, comprising 20.16% of Upwork's site visits.
These tech-savvy young adults actively seek freelance opportunities on Upwork, making it a hotspot for those looking to kickstart their careers or find flexible work.
7. Over 60 million individuals in the U.S. have gone freelance in the last two years
Freelancing has become a booming trend among young professionals in a world where traditional 9-to-5 jobs are no longer the only path to career success.
Upwork's 2022 Freelance Forward survey shows that 39% of the U.S. labor force, roughly equivalent to 60 million individuals, delved into freelance work the previous year.
The rise of online platforms and remote work opportunities influence this scenario, making it easier than ever for young adults to tap into the world of freelancing, offering them a chance to create their schedules and work from anywhere.
A Pew Research Center study points out that at least 16% of U.S. adults have engaged in platform-based gig work at some point during the same period.
8. Upwork clients typically have around $5,000 to spend on their projects
In 2023, Upwork clients bring an average budget of $5,000 when seeking freelancers. That sets Upwork apart because clients often focus on more long-term projects, which can be an excellent opportunity for job hunters.
This dynamic offers freelancers valuable opportunities and opens doors to collaboration with major industry players like Coca-Cola, Microsoft, SoftBank, and more.
Business Insider has even reported instances where some freelancers on Upwork have generated earnings exceeding $1 million. However, this income potential responds to lasting partnerships with companies.
Upwork Performance Statistics
9. Upwork takes 5% to 20% of each payment as a fee
Upwork does take a service fee, ranging from 5% to 20% of the payment, depending on the circumstances.
It's 20% for projects up to $500, 10% for projects between $500 and $10,000, and 5% for projects over $10,000.
Many freelancers start with lower rates to attract their first clients, but as they gain experience and build a positive track record with good reviews, they can gradually increase their rates.
10. Women on Upwork set median hourly bill rates 13.5% lower than men
When comparing the median hourly bill rates workers set, a recent study revealed that women on Upwork set rates 13.5% lower than men. Even after considering factors like work experience, education, and job type, the wage difference remained.
The study involved data from 48,019 U.S. workers, nearly half of whom were women, revealing that female workers' median hourly bill rates were only 74% of their male counterparts.
Summary: Upwork Statistics
- In 2022, Upwork generated $566.6 million in revenue.
- Upwork's 2022 revenue reflected a 23% increase over 2021.
- Upwork operates in 178 countries.
- The platform has 814,000 active buyers in 2023.
- Upwork has around 12 million freelancers in 2023.
- 39.75% of Upwork's traffic comes from young adults between 25 and 34.
- Over 60 million individuals in the U.S. have gone freelance in the last two years.
- Upwork clients typically have around $5,000 to spend on their projects.
- Upwork takes 5% to 20% of each payment as a fee.
- Women on Upwork set median hourly bill rates 13.5% lower than men
The gig economy, epitomized by platforms like Upwork, is reshaping the future of work. For freelancers, it's a gateway to financial independence, while businesses embrace the agility it offers in managing their workforce. Upwork's role as a catalyst in this transformation is undeniable.
As we adapt to these work changes, one thing is sure: Upwork isn't just a website; it's a powerful driver taking us into a new era where work is more flexible and easier to find.
- Tech firms Eventbrite and Upwork prepare to go public - MarketWatch
- Freelance marketplace Upwork files to go public on Nasdaq as UPWK | TechCrunch
- Upwork co-founder launches Ergeon, a startup that builds fences | TechCrunch
- Upwork’s 2022 Financial Results
- Upwork’s 2022 Financial Results
- Stock Quote & Chart | Upwork Inc.
- Eligibility to Join and Use Upwork
- Fiverr or Upwork: When freelancers should use one over the other
- upwork.com Traffic Analytics, Ranking Stats & Tech Stack | Similarweb
- Women (Still) Ask For Less: Gender Differences in Hourly Rate in an Online Labor Marketplace
- The State of Gig Work in 2021 | Pew Research Center
- A freelancer's ultimate guide to Upwork: How to start your own business, work from anywhere in the world, and make seven figures
- Manage How You Get Paid – Upwork Customer Service & Support