As artificial intelligence reshapes the workforce and replaces some entry-level roles, more young workers are turning to freelancing as a first career choice, according to a report by Forbes.
For the first time on record, unemployment among recent college graduates has remained higher than the overall jobless rate. The U.S. Bureau of Labor Statistics reported an 8.5% unemployment rate for bachelor’s degree holders aged 20 to 24 in July 2025 — nearly double the national average. LinkedIn data also show that entry-level job postings in technology, finance and consulting have fallen more than 18% over the past year.
“AI is fundamentally reshaping entry-level roles by automating routine tasks and raising the bar for required skills,” said Kelly Monahan, managing director of the Upwork Research Institute. “This shift is both a challenge and an opportunity, requiring proactive upskilling from job seekers and a commitment to future-ready talent from organizations.”
Monahan said Gen Z workers are adapting by leaning into freelancing. “For young people struggling to break into a tough job market, freelancing offers a way to earn income, build real-world skills, and take ownership of their careers right away,” she said.
Changing Entry-Level Dynamics
Traditional entry-level jobs, once viewed as career stepping stones, are now evolving into roles that demand digital fluency and collaboration with AI tools. Monahan noted that early-career professionals can stand out by developing foundational AI skills and showcasing problem-solving and communication abilities.
The shift, she added, is pushing young professionals toward higher-value, human-centric work in areas like generative AI, system integration and prompt design.
Gen Z’s Freelance Pivot
More than half of Gen Z professionals—about 53%—are now freelancing full time by choice rather than pursuing traditional 9-to-5 jobs, according to Upwork research. Monahan said freelancing offers control, flexibility and autonomy that younger workers value.
She added that freelancers often gain a wider range of skills, from client communication to self-management, which traditional jobs may not offer. AI, while automating some roles, is also expanding opportunities for freelancers to enhance productivity. Upwork data show that freelancers use AI to augment human work 71% of the time, freeing them to focus on more strategic and creative projects.
Freelancing is not limited to Gen Z. About 28% of U.S. knowledge workers are now freelancing or working independently — a sign that the model is becoming a long-term career option rather than a temporary fix.
A Freelance Future
Monahan advised aspiring freelancers to start small, build a portfolio, and take on projects that develop both skills and confidence. “Every project you complete not only builds your expertise but also your resilience and personal brand,” she said.
Gen Z freelancers are also leading in tech adoption, with 61% self-training in generative AI tools, compared to 41% of traditional employees. Monahan said that advantage gives them a competitive edge in a rapidly changing job market.
While the loss of traditional entry-level jobs may appear discouraging, experts say the shift could be a catalyst for empowerment. “More professionals are choosing freelancing as a full-time career, not just a side hustle,” Monahan said. “Gen Z is leading that change.”