Today’s independent workforce is strong and confident, finds MBO Partners’ 9th annual State of Independence in America Report, the longest-running, comprehensive look at the independent workforce.
Independents—the 41 million adult Americans who work as consultants, freelancers, contractors, temporary, or on-call workers—are a powerful economic force, generating $1.28 trillion of revenue for the U.S. economy last year.
1. The State of Independence
in America
2019 REPORT The Changing Nature of the American Workforce
2. About the Study
The 2019 MBO Partners State of Independence in America is
the 9th consecutive year this study has been conducted. Since
2011, independent workers have completed over 21,000 in-
depth surveys and over 1,400 independent workers have been
interviewed in-person as part of this study series.
For the 2019 study, Emergent Research and Rockbridge
Associates conducted an online survey in March of 2018. This
survey had responses from 3,584 residents of the U.S. (aged 21
and older); the results were used to size the independent
workforce and profile motivations among independent and
traditional workers (margin of error: +/-1.7 percent). The data
was weighted to reflect the demographics of the U.S. The 2019
results are generally statistically consistent with the survey
results from the prior 8 years.
View the report online: www.mbopartners.com/state-of-
independence
3. Key Findings
3
Full-Time Independents: A Solid Core Amidst a Very Strong Job Market
The Rise of Occasional Part-Time Independents
Youth Will Be Served: The Rise of the Millennials
Working in a Networked World: Technology, Platforms, and Globalization
The Financial Well-Being of Independents
4. Independence Remains a Viable Career Path for Many
4
Full-Time Independents declined by 3.1% to 15.3 million.
Strong traditional job market pulling people back to
traditional employment, especially reluctant independents
Part-Time Independents (less than 15 hours per week) declined
by 2.7% to 10.8 million from 11.1 million in 2018.
Number of occasional independent workers increased by 6.3% to
15 million, up from 14.1 million in 2018
Economic factors driving need for supplemental income
Side gigs have become more popular
Digital platforms make it easier to pick up work
TOTAL INDEPENDENCE REMAINS FLAT, EVEN AGAINST THE STRONGEST JOBS MARKET IN RECENT HISTORY
2014 2016 20182013 2015 2017 2019
FULL-TIME
INDEPENDENT
WORKERSINTHE
U.S.
20122011
16
Million
16.9
Million
17.7
Million
17.8
Million
17.8
Million
16.9
Million
16.2
Million
15.8
Million
15.3
Million
5. The Number of Occasional Independents Continues to
Grow Rapidly
5
10.5
12.9
14.1
15
2016 2017 2018 2019
NumberofOccasionalIndependentsin theUnitedStates
(in millions)
“For a large chunk of the American population, part-
time or occasional independentwork has become
crucial tomaking ends meet andshore upshaky
finances. Themarket issupplying a solution, in the form
of platforms and marketplaces that enableoccasional
work or sidegigs.”
- MBO Partners State of Independence
8. Independent Satisfaction is the Highest it has Ever Been
8
13% RESPONDED 7, SO ROUGHLY 9 OUT OF 10 ARE SATISFIED OR HIGHLY SATISFIED
4%
3%
3%
3%
2%
2%
2%
2%
1%
38%
27%
33%
34%
34%
33%
24%
26%
23%
58%
70%
64%
63%
63%
65%
74%
72%
76%
2011
2012
2013
2014
2015
2016
2017
2018
2019
Very Dissatisfied (1-3)
Neutral (4-7)
Very Satisfied (8-10)
9. Full-Time Independents Choose to Work this Way
9
55%
57%
56%
53%
58%
59%
65%
63%
67%
15%
13%
14%
13%
9%
10%
9%
8%
7%
30%
30%
30%
34%
32%
30%
26%
26%
26%
2011
2012
2013
2014
2015
2016
2017
2018
2019
My choice completely
A result of factors
beyond my control
A combination of both
EmploymentChoice
10. People Plan to Continue Working as Independents
10
PERCENTAGE OF RELUCTANT INDEPENDENTS AT LOWEST LEVEL IN 8 YEARS
Continue working as an
independent worker
Build a larger business
Seek a permanent, full-time job
Seek a permanent, part-time job
Retire
Stop working altogether
11%
18%
2%
3%
1%
16%
15%
2%
5%
2%
2011 2015
63%
15%
13%
2%
4%
1%
2016
61%
14%
10%
4%
6%
1%
64%
11%
3%
6%
3%
2017 2018
70%
12%
7%
1%
7%
2%
2019
12%
63% 58%
11. How Independents Find Work:
11
WORD OF MOUTH DOMINATES, BUT SOCIAL MEDIA & ONLINE TALENT MARKETPLACES ARE GROWING RAPIDLY
Top Methods of Finding Assignments
WordofMouth SocialMedia&
OnlineTalent
Marketplaces
OnlineCommerce
Marketplaces(eBay,Etsy,
Airbnb)
Agency/Broker FormerEmployer
Top Way
Top 3 Ways
46%
64%
17%
30%
9%
15%
8%
15%
6%
17%
12. Usage of Online Talent Marketplaces Continues to Expand
12
Online talent marketplaces increasingly becoming just another sales channel for many independent workers
Based on interviews and other research, the main uses of online marketplaces are to:
Fill in gaps in schedules
Find new clients, especially for those who are new or starting up
Learn new skills
Explore new markets
There is a lot of testing and experimentation with marketplaces going on
MANY INDEPENDENTS SUPPLEMENT TRADITIONAL CHANNELS FOR FINDING WORK WITH ONLINE MARKETPLACE
USE
Used an online talent platform to find
work over the past 12 months
Plan to use an online talent platform
to find work over the next 12 months
4% 8%
2012 2013
14%
16%
2014
15%
18%
15%
2015 2016
20%
25%
2017
18%
3% 5% 22%
2018
24%
29%
2019
24%
13. Millennials are Most Likely to Find Work Via an Online Talent
Marketplace
13
Boomers
Gen X
Millennials
13%
15%
38%
Use of talent marketplaces
by age cohort
14. Economic Contribution
14
Over the past year, independent workers generated roughly $1.28 trillion of revenue for the U.S. economy, equal to about
6.2 percent of U.S. GDP (2018), or the entire economic output of Spain.
16. Remote and Dispersed Work is on the Rise for All
16
47% of traditional, full time employees report
working remotely at least some of the time.
19% work remotely half of the time
12% work remotely full time
83% of full time independent workers report
working remotely at least some of the time.
51% work remotely more than half of the time
37% work remotely full time
17. Meet the Digital Nomad
17
A DEMOGRAPHIC PROFILE
Many keep costs down by combining
low-cost living with earning income at
the wage rates of higher cost
locations.
Geoarbitrage
report earning $75,000 or more
per year
790,000
are part-timers and many work only
part of the year. As a result, their
income from varies widely.
46%
are female and over half (54%) are
older than 38 years old
31%
18. By the Numbers
18
4.1 million
independent workers identify as digital nomads*
16.1 million
Americans say they will become digital nomads over the next 2-3 years
41 million
Americans say they may become digital nomads over the next 2-3 years
3.2 million
traditional workers identify as digital nomads*
19. Income Scales with Age: Boomers are the Big Earners
19
$52,200
$71,500
$84,000
Full-Time
Independent
Workers Average
Earnings by Age
Cohort
Millennials
Gen X
Boomers
20. Those with Traditional Jobs See the World Very Differently
than Independent Workers
20
Always wanted to be own boss
Don’t like answering to boss
Flexibility is more important than making the most money
Doing something I like is more important than making the most
money
Traditional jobs are more secure than independent work
I would rather have a permanent job than work on my own
38%
46%
56%
70%
58%
66%
72%
77%
53%
19%
TraditionalJob Holder IndependentWorker
44% 75%
21. Comparing Work Satisfaction Between Full-Time Independent
Workers and Traditional Job Holders
21
(ASKED OF RESPONDENTS WHO SCORED 6 OR HIGHER ON SATISFACTION)
WorkAttributes Satisfaction with Pay/ Income
Independent
Worker
TraditionalJob
Holder
I have control over where
and how I work
I have interesting work
My clients or employer appreciates
the quality of my work
Provides benefits
I get paid well
I have regular income
79% 24%
57% 37%
60% 39%
N/A 55%
38% 48%
32% 74%
Independent
Worker
TraditionalJob
Holder
Very satisfied or satisfied
Neither satisfied or dissatisfied
Very dissatisfied or dissatisfied
69% 66%
16% 16%
15% 18%
22. About MBO Partners
22
MBO Partners delivers solutions that make it safer and easier for
enterprise organizations and top independent professionals to work
together. Through its proprietary platform, MBO has built a
comprehensive workforce ecosystem that fuels both sides of the
independent economy. MBO strengthens relationships, minimizes
risk, and maximizes value for its clients. Its unmatched experience
and industry leadership enable it to operate on the forefront of the
independent economy and consistently advance the next way of
working.
To learn more, visit www.mbopartners.com.