Contract work is surging as companies tighten return-to-office policies and trim payrolls, reshaping how many Americans approach their careers. With layoffs hitting white-collar sectors and remote flexibility shrinking, more professionals are considering freelance and contract roles for stability (and autonomy) in a shifting labor market.
Various studies have found that remote workers are often more productive than their in-office counterparts, with some reporting 40 percent higher productivity due to fewer distractions, less meetings and more time for deep or focused work. Yet, leaders argue that in-person work fosters faster decision-making, innovation, and team cohesion compared to fully remote setups.
Return-to-office mandates are now prompting many workers to weigh whether the traditional 9-to-5 still fits their lives or if independent contracts offer a better path forward.
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Being your own boss
According to a new report by HR platform Mellow, contract work is on the rise as a result of RTO mandates. These so-called RTO escapees cite time-heavy commutes (61 percent), lower on-site productivity (58 percent) and family commitments (45 percent) as their main reasons for going solo.
“The commute was becoming unsustainable. I was spending two hours a day and nearly $400 a month just to sit in an office doing work I could finish at home. When management announced a full return, I knew it was time to look for something better,” said one respondent.
Higher earnings
It is also affording workers more than flexibility: 68 percent of freelancers are now earning more than they did in full time corporate jobs and freelancers with multiple clients earn 127 percent more than those relying on a single employer.
And while layoffs may have induced 36 percent of respondents into freelancing out of necessity, 73 percent say flexibility is now the main reason they are choosing to stay self-employed, and 57 percent currently rely on it as their primary source of income.
“I realised I could raise my earnings substantially as a contractor without adding hours. For specialists with in-demand skills, the contract market often pays better than traditional employment,” said another survey participant.
Attitudes to freelancing as a viable career pathway are also tied to what generational cohort you belong to.
Mellow’s research found that Millennials and Gen Z are leading this trend, making up 74 percent of multi-client freelancers, with 23 percent of those aged 30–44 earning over $150K per year.
They’re also being wise with their money and nearly 60 percent are building top-up or emergency funds to actively fortify their finances.
The finer details
While men often cite career confidence as their reason for freelancing, women highlight flexibility and work-life balance. Overall, 88 percent of multi-client freelancers report greater financial stability and job satisfaction.
This is because freelancing also offers career autonomy, skills development, and schedule control, improving work-life balance – 51 percent are upgrading their skills and 41 percent are expanding their professional networks too.
And although time management (42 percent), irregular payments (35 percent), and contract/admin issues (29 percent) can be challenging to navigate, 82 percent of freelancers say they wouldn’t return to an office job, even for a pay raise.
Additionally, 61 percent shared that freelancing had brought a professional confidence they didn’t experience in their former corporate jobs.
“Freelancing is now a mainstream career choice, and businesses must acknowledge this shift,” says Pavel Shynkarenko, founder of Mellow.
“Our research shows that 63 percent of freelancers with multiple clients are thriving, enjoying both higher earnings and better work-life balance. At Mellow, we believe the future workforce will be defined by professionals who value flexibility and financial security.”