The era of degree-based hiring is fast fading. As workforce demands evolve, 81% of C-suite executives are turning to skills-based hiring practices to fill critical roles, shifting the focus from academic credentials to proven capabilities. In this new talent economy skills are the new currency of success.
AI is rewriting the playbook for workforce priorities. The boom in generative AI modeling and data annotation is creating high demand for specialized skills indispensable to the full lifecycle of AI solutions. These roles command premium rates and are at the heart of advancing AI-driven workflows.
At the same time, the growing emphasis on career coaching and development signals a critical need for workers to reskill, adapt and thrive alongside AI. Despite rapid technological advances, human guidance and empathy remain irreplaceable as companies seek to build a workforce resilient enough to navigate constant disruption.
Freelancers are shaping the backbone of the workforce revolution. Nearly 50 percent of full-time workers now rely on freelancers for key skills such as website design, generative AI and product management. CEOs in high-tech sector are following suit with 48% planning to boost freelance hiring in the coming year, leveraging agile talent to close skill gaps and stay competitive in an unpredictable world.
The Shift to Skills-Based Hiring and the Rise of Freelancers
The dynamics of today’s labor market are shifting rapidly, reshaping how organizations assess talent and approach hiring. Business leaders increasingly recognize that yesterday’s talent playbook no longer works to meet today’s need for an effective, skilled, and flexible workforce. A significant 81% of C-suite executives report that their organizations are taking deliberate steps to adopt skills-based hiring practices, including removing degree requirements and emphasizing skills assessments.
The move to skills-based talent practices is impacting both incoming workers and existing employees. In fact, 35% of leaders acknowledge that in the past 12 months, they have required their companies’ people to expand their skillsets, in addition to performing their day-to-day work. Still, major skill gaps persist. Leaders estimate that only a quarter of their current employees can effectively work alongside AI solutions today, and even fewer (19%) can proactively leverage AI to solve problems.
For many, skilled freelancers have offered a solution. According to research fielded by the Upwork Research Institute in the summer of 2024, nearly half (49%) of full-time workers now rely on freelancers to address critical gaps to help them do their work, with 41% turning to freelancers for technical skills such as web design, data analytics, product management, generative AI, and video production.
CEOs are responding accordingly, with 48% planning to increase freelance hiring over the next 12 months. In fact, nearly one in three C-suite executives (29%) say that freelancers are highly essential to their business operations and that they couldn’t get by without all of their freelancers. Another 51% of the C-suite said that it would be difficult to conduct their business without their freelancer support.
Moreover, 76% of executives—and 78% of CEOs—assert that their top freelancers contribute more value than degree-holding employees. This view is supported by the fact that 74% of executives say degrees are irrelevant when hiring freelancers, focusing instead on proven expertise.
Because businesses are increasingly looking to freelancers to bring specific skills into their workforce, examining the most in-demand skills at scale illuminates what skills organizations are most seeking, which carry the greatest value, and what may be coming next.
Upwork’s Top 3 Fastest Growing Skills by Category for 2025
Accounting and Consulting
- Personal coaching
- Career coaching
- Training & development
Coding & Web Development
- Scripting & automation
- Web design
- UX/UI design
Customer Service & Admin Support
- Supply chain & logistics project management
- Construction & engineering project management
- Qualitative research
Data Science & Analytics
- AI Data Annotation & Labeling
- Knowledge representation
- Generative AI modeling
Design & Creative
- Pattern design
- Product & industrial design
- Video production
Sales & Marketing
- Display advertising
- Campaign management
- Email marketing
Upwork’s Top 10 Most In-Demand Skills by Category for 2025
Accounting & Consulting
- Accounting
- Bookkeeping
- Recruiting & Talent Sourcing
- Financial Analysis & Modeling
- Management Consulting
- HR Administration
- Tax Preparation
- Instructional Design
- Business Analysis & Strategy
- Financial Management/CFO
Coding & Web Development
- Full Stack Development
- Front-End Development
- Web Design
- Mobile App Development
- Back-End Development
- Ecommerce Website Development
- UX/UI Design
- Scripting & Automation
- CMS Development
- Manual Testing
Customer Service & Admin Support
- General Virtual Assistance
- Data Entry
- Digital Project Management
- General Research Services
- Executive Virtual Assistance
- Ecommerce Management
- Market Research
- Manual Transcription
- Medical Virtual Assistance
- Business Project Management
Data Science & Analytics
- Data Analytics
- Machine Learning
- Data Visualization
- Data Extraction
- Data Engineering
- Data Processing
- Data Mining
- Experimentation & Testing
- Deep Learning
- Generative AI Modeling
Design & Creative
- Graphic Design
- Video Editing
- Presentation Design
- 2D Animation
- 3D Animation
- Video Production
- Product & Industrial Design
- Cartoons & Comics
- Brand Identity Design
Sales & Marketing
- Social Media Marketing
- SEO
- Sales & Business Development
- Lead Generation
- Search Engine Marketing
- Telemarketing
- Email Marketing
- Marketing Automation
- Marketing Analytics
- Campaign Management
The Growing Need for Learning Skills: Coaching and Development
As workplaces everywhere undergo seismic shifts, one thing has become clear: workers need more than skills—they need guidance. Our data reveals a compelling trend: career coaching, training, and development are among the fastest-growing skills within their category on the platform.
This surge speaks to a deeper truth about the future of work in 2025. With industries evolving at breakneck speed, the ability to adapt, reskill, and navigate ambiguity has become essential. The very essence of learning how to learn is becoming a critical and growing skill set. And while technology is transforming how we work, it is the human-to-human connection that is proving irreplaceable in helping workers find their footing.
Ironically, in an age dominated by AI, the most valuable form of support lies in the lived experience and empathy that only a skilled coach can provide. The power of coaching isn’t only about learning new skills; it’s also about fostering confidence, perspective, and resilience—qualities that machines simply can’t replicate.
Conclusion: Navigating Skills-Based Hiring in 2025
As businesses focus on future-proofing their workforce, investing in coaching and development is no longer optional: it’s a strategic imperative. Organizations that prioritize these human connections will build a workforce that is both highly skilled and deeply engaged, capable of thriving in an unpredictable and rapidly changing world.
By aligning hiring strategies with the most in-demand skills, companies can stay ahead in the evolving job market while professionals can position themselves for success in a skills-driven economy.