The American labor market is witnessing a significant transformation, with a 6.5% increase in full-time independent workers over the past year, totaling 27.7 million Americans, according to a study by MBO Partners. This trend underscores a growing preference for self-employment and flexible work arrangements, challenging traditional employment models.
The study, part of MBO's annual State of Independence report, reveals that nearly one in five independent workers now earns more than $100,000 annually, highlighting the economic opportunities available outside traditional employment. Miles Everson, CEO of MBO Partners, views this growth as a departure from the conventional employer-employee relationship, with 65% of full-time independent workers feeling more secure in their careers.
Younger generations are at the forefront of this shift, with Millennials and Gen Z making up 59% of the independent workforce. This demographic change reflects a redefinition of career success, emphasizing flexibility, purpose, and financial independence. Independent workers report higher job satisfaction and security, with 65% feeling more secure compared to traditional workers, and nearly 60% finding their work aligns with their identity.
Contrary to being a response to job market instability, 61% of independent workers in 2024 chose this path willingly, with only 10% feeling compelled. The rise of high-earning independents, now numbering 4.7 million, further illustrates this trend. Technology and globalization are key drivers, with a 14% increase in independent professionals serving businesses and 65% utilizing AI tools, up from 37% in 2023. Additionally, 31% of independents now serve clients outside the U.S., a significant increase from 2012.
This shift has wide-ranging implications, offering individuals greater autonomy and alignment with personal values, while presenting businesses with new challenges and opportunities in talent management. As the independent workforce grows, its impact on the economy, labor laws, and societal norms is expected to be profound, marking a fundamental change in perceptions of work and success.
