The Independent by Choice Movement:
Authentic
and Intentional
State of Independence in America 2024
Why do people work?
In the 21st century, they do so for the same reason they have done so for millennia: to make a living, to pay the bills, to support their families, to build their career, to follow their passion. Because they must.
In 2024, we live in a much more complex time. The nature of work is changing, the social contract between employers and employees, and the relationships between clients and service providers, are constantly shifting. Choices about a job, a place of work, or even a mode of work can be subordinate to a desire to live in a different place - or to feel a certain way about what you do.
These motivations are among many that inspire and drive one of the most dynamic and rapidly growing segments of the American labor force: the independent worker.
At MBO Partners, we have been charting the rise of independent workers for 14 years. The annual State of Independence research gives us a window into the hearts, minds, and wallets of the 72.7 million people who practice their trades, crafts, and professions outside the confines of a traditional payroll job. The number of independent workers has grown exponentially.
Independents in America (by Type of Worker)
(data in millions unless otherwise noted)
Authentically Independent.
Among our new findings is that, for more people, working independently allows them to be who they really are: to make work add up to more than a paycheck, and to build a sense of security, purpose, and personal growth.
The Constant is Change
The Federal Reserve has tried to rein in inflation by raising rates to 23-year highs and keeping them at elevated levels with the intention of cooling the labor market. But with 53 straight months of job creation, the unemployment rate stayed below 4% for a record 27 straight months and rose to 4.3% in July. In June, there were 8.2 million jobs open in the U.S., compared with only 5.6 million people in July who said they were unemployed and wanted a job. Employers have had to increase wages at above the rate of inflation to attract and retain workers.
Structural changes supporting independent work, from online talent exchanges to platforms like MBO Partners, provide a significant tailwind. After several years of extraordinary growth, the number of independent workers was essentially flat in 2024, growing from 72.1 million in 2023 to 72.7 million. (In 2020, there were only 38.2 million total independents.)
The number of Occasional Independents, defined as those who do earn money periodically and irregularly, but at least monthly by working independently, fell marginally to 36.5 million.
The number of Part-Time Independents, those who work independently 15 or fewer hours weekly, fell by 10%, from 9.5 million in 2023 to 8.5 million in 2024.
Full-Time Independents, those who work independently more than 15 hours per week, grew an impressive 6.5% to 27.7 million in 2024 from 26 million in 2023. That makes them 16.7% of the 165 million Americans in the workforce. The share of reluctant Full-Time Independent workers - those who would prefer a traditional payroll job - held steady at 28%.
Full-Time Independent Workers
(in millions)
Meet the Independents
Historically, the faces of the independent workforce tend to change slowly. But 2024 saw significant changes.
For years, the desire of the vast Baby Boomer+ cohort (ages 60 and older) to keep working as they aged out of full-time payroll employment propelled growth in the sector. But increasingly, older Americans are leaving the workforce entirely.
The independent workforce is getting younger, and, by definition, more diverse, thanks in part to the decline of the heavily white (90%) Boomer cohort. The rise of the Creator economy - 29% of creators in our survey are African-American - is another important factor. The independents surveyed identify as:
White 72%; African-American 18%; Hispanic 9%; Asian 5%
Male 54%; Female 45%; Non-binary 1%
Independent Workforce by Age Cohort
Autonomy and Confidence
Just as the demographic profile of independent workers is changing, so, too is their psychological profile.
Most independents work this way because they want to. In 2024, roughly in line with the findings from the last 10 years, 61% said working independently was their choice completely, while only 10% said it was a result of factors beyond their control, and 27% said it was a combination of both.
Happier. More Secure. Healthier.
The responses also speak to a greater sense of agency and fulfillment among Full-Time Independent workers.
84% of Full-Time Independents say they are happier working on their own.
Fully two-thirds say they feel more secure working independently (65%).
79% say working on my own is better for my health.
Happier and Healthier
Full-Time Independents
I am happier working
on my own
Working on my own is
better for my health
I feel more secure
working independently
Historically, independent work has been viewed as inherently less secure than traditional payroll jobs.
But confidence is growing as the support network and infrastructure surrounding independent work continues to broaden: 65% of Full-Time Independents say they feel more secure working independently, and 54% say they will not go back to a traditional job.
One of the significant findings of this year's survey is that for Full-Time Independents, it's not just about the money. While only 52% say they make more money working on their own, 84% say they are happy doing it, and nearly three quarters (72%) are optimistic about the future.
Happier and Healthier
Full-Time Independents
I am happier working
on my own
Working on my own is
Better for my health
I feel more secure
working independently
Historically, independent work has been viewed as inherently less secure than traditional payroll jobs.
But confidence is growing as the support network and infrastructure surrounding independent work continues to broaden; 65% of Full-Time Independents say they feel more secure working independently, and 54% say they will not go back to a traditional job.
One of the significant findings of this year's survey is that for Full-Time Independents, it's not just about the money. While only 52% say they make more money working on their own, 84% say they are happy doing it, and nearly three quarters (72%) are optimistic about the future.
Life Goals
When asked about their life goals, in areas like helping others (62%), spending time with family (61%), and ensuring life has purpose (59%), independents' response was similar to those of traditional payroll workers. But there were a few significant divergences.
Drivers for Independent Workers
Continued personal growth
Creating wealth
Being healthy
Continued personal growth
Creating wealth
Being healthy
Over the past decade, the traditional social contract between firms and workers has undergone significant changes. The traditional social contract was an implicit agreement in which employees exchanged loyalty for job security, stable career progression, and benefits, often including a guaranteed pension.
However, job security no longer exists, benefits ,including retirement and health benefits, have been cut back or eliminated,
However, job security no longer exists, benefits, including retirement and health benefits, have been cut back or eliminated, and the mutual loyalty between organizations and their employees has eroded.
and the mutual loyalty between organizations and their employees has eroded.
Workers are also prioritizing flexibility and work that aligns with their personal values - and less than half (47%) of traditional job holders report their job fits with who they are as an individual. As a result, many workers are no longer as attached to their employers as they were in the past.
The deterioration of the social contract is reflected in our 2024 survey data. About one-third (34%) of traditional jobholders are worried about losing their jobs, and two-thirds (65%) report that having multiple sources of income is important. Also, only 63% of traditional jobholders believe their employer is committed to retaining talent.
The Social Contract Between Employees and Employers is Fraying
"Enterprises must be programmatically looking at their total workforce strategy in a way that is encompassing and favorable to including Independents by Choice as part of that strategy. You cannot have a successful workforce strategy or meet the needs of a growth company without this critical source of talent."
Overcoming Challenges
Some of the higher satisfaction with independent work can be ascribed to the positive attributes of work-life balance and purpose. But there's also strong evidence that many of the stresses and negatives historically associated with independent work are abating. Full-time Independents tell us their path is less risky because their lived experience has shown it to be the case.
Top Challenges as Reported by Independents (2012 vs 2024)
(by percentage)
The positive feelings and confidence surrounding independent work are contagious. In 2024, 31% of those with traditional jobs said working independently is less risky than permanent employment; only 18% agreed with that statement in 2018.
"More of my friends are working independently": 48% Independents; 42% Traditional
"Independent by Choice workers are confident and embrace innovation, such as Generative AI as a means to augment their human intellect and elevate their strategic value to clients."
Independents' confidence carries over into their sanguine approach to a new technology that has taken the world by storm, and that many view as a threat to their livelihoods and the very existence of work.
59% of independents say Gen AI makes them more competitive.
59% of independents say Gen AI
makes them more competitive.
For the large majority of independents, the experience has been positive: 62% say it complements their work. Fifty-nine percent of independents say GenAI makes them more competitive, while 66% said it increased their productivity/efficiency.
Independents overwhelmingly view AI as a tool to help them work and conduct business better rather than as a threat. Asked whether their work is at risk of being replaced over the next three years by AI, only 7% of independents strongly agree and 17% somewhat agree.
Use of Generative AI by Independent Workers
| I use Gen AI in my work | 37% | 65% |
| Incorporating Gen AI into my work is extremely useful | 51% | 69% |
| I use Gen AI for writing | 33% | 43% |
| I use Gen AI for research | 31% | 42% |
| I use Gen AI for creative tasks | 27% | 36% |
Finding Work
Independents might be optimistic about the latest technological force because they have proven able to use recent developments in information technology - the internet, social media, online platforms, remote work - to such great effect.
When it comes to finding work, the oldest form of referral - word of mouth - remains the most frequently cited, at 53%. But asked about ways in which they found work, 43% said social media, and 29% said they used online talent marketplaces (up from 15% in 2020.)
Side Gigs Are Mainstream
Over one-third (37%) of those with a traditional job report also having an independent side gig. The top reason for having a side gig is to supplement income, with 42% of side giggers citing this reason. But a sizeable share of those with side gigs report having them for entrepreneurial reasons - to build a business (27%) or pursue a passion (30%).
Interestingly, a large share of side giggers (44%) say they are worried about losing their primary job, and about one in four traditional workers with a side gig (24%) say their side gig provides them with a back-up in case job loss happens. This reflects the continuing erosion of the social contract between employers and employees and the growing lack of traditional job security.
Echoing the mainstreaming of side gigs, most traditional jobholders (53%) without a side gig report planning to have one in the future.
The Creator Economy Returns to Growth
After a plateau in growth in 2023, the number of independent content creators who produce and monetize digital content grew 9.9% in 2024, to 8.9 million from 8.1 million. Not surprisingly independent creators skew young: 51% are millennials and 28% are Gen Z.
As in prior years, about two-thirds (65%) of independent creators report doing so on a part-time basis; about one-third (35%) are full-time creators. One reason for the large share of part-timers is the creator economy is a popular side gig.
Number of Independent Creators
(in millions)
Climbing the Value Chain
The nature of independent work is changing. Of course, many independents are working side gigs, driving Uber, making deliveries, or working for a few hours on the weekends to make extra money. But with each passing year, a rising number of independent professionals are earning higher incomes, and building connections to other businesses - in the U.S. and abroad.
Serving Businesses: The number of Full-Time and Part-Time Independent Service Professionals, people who provide services to businesses, increased 14% in 2024 to 11.2 million, and is up 50% since 2020.
Independents Providing Services to Businesses
(in millions)
Number of $100k+ Independents Increased 2% to 4.7 Million
(in millions)
Inside the Mind of High Earners
Earning More: The number of independents making more than $100,000 annually rose slightly in 2024 to 4.7 million from 4.6 million – that’s up sharply from 3 million in 2020.
The interest in self-realization and self-actualization is particularly high among higher earning independents: 79% of $100K + earners say they always wanted to be their own boss and almost three quarters (73%) say their work fits well with who they are as a person. $100k+ earners also report high levels of satisfaction with their work (88%) and most feel optimistic (83%) about the future of their career.
Going global: Thanks to platforms, marketplaces and social media, the global reach of independent workers is growing. In 2024, 31% said they provided goods and services to customers outside the U.S. That's up from 28% in 2023, and nearly triple the proportion who said so in 2012 (12%).
Independents Who Provided Goods
and Services Outside the U.S.
2012
2023
2024
Digital Nomads
Even as more employees return to offices in the post-Covid era, the number of digital nomads continues to grow. In 2024, 18.1 million said they were digital nomads, people who embrace a location-independent, technology-enabled lifestyle that allows them to combine travel and working remotely. Some of the growth was due to the enforced rise of
remote work in the pandemic - which is now being partially unwound. In 2024 the number of independent digital nomads rose 20% while the number of traditional digital nomads fell 5%.
Even as more employees return to offices in the post-Covid era, the number of digital nomads continues to grow. In 2024, 18.1 million said they were digital nomads, people who embrace a location-independent, technology-enabled lifestyle that allows them to combine travel and working remotely. Some of the growth was due to the enforced rise of remote work in the pandemic - which is now being partially unwound. In 2024 the number of independent digital nomads rose 20% while the number of traditional digital nomads fell 5%.
For more details on digital nomads, see the Digital Nomad research brief
Working in Retirement
In 2024, for the first time we asked questions related to working in retirement.
A key finding is that retirement is more fluid and often includes work. Almost half (45%) of those who say they are retired also report engaging in some form of paid work. Also, 35% of those saying they are retired report they may go back to work at some point, and 15% of those over 50 report that they retired and then went back to work at some point.
Working independently is popular with older workers. Almost four in ten (38%) of workers over age 65 who report being in the workforce are independent workers, and half (51%) of those who report being retired and having some form of paid work are independents. Independent work provides the flexibility, autonomy and control many older workers seek. And due to the reluctance of traditional employers to keep older workers on the payroll, it is often their only choice.
Independents Working in Retirement
Independents Working
in Retirement
Report engaging in some form of paid work
Report they may go back to work at some point
Those over 50 years old who retired and went back to work
Conclusion
The motivations for pursuing independent work are a complex lattice of emotional and practical ones. Across the board, as faith in the social contract between employers and employees declines, people with jobs are generally more concerned than they were a decade ago about the prospects and consequences of losing their jobs.
And many people in traditional employment face continuing challenges in getting higher wages - especially younger people. In 2024, 37% of traditional workers report having an Independent side gig. Of those, 81% say that it's important to have multiple sources of income.
Full-Time Independents continue to pursue their path with clear eyes and full hearts, with a sense of purpose and a belief that work should align with their values and self-perceptions - as professionals, family members, and as people.
After 14 years of studying this dynamic segment of the workforce, our hope is that, as this continues to become mainstream, companies will move towards even greater adoption of the independent workforce, recognizing the great value in this pool of talent. We believe that it will soon become as normal to hire an independent as a full-time employee, and that is the future we are actively working to shape.
Methodology
The findings in this research brief come from the 2024 MBO Partners State of Independence in America study survey, which was fielded in June 2024. This is the 14th consecutive year this study has been conducted. For the 2024 study, Emergent Research and Illuminas surveyed 6,575 residents of the U.S. (aged 18 and older), including 1,132 independent workers. The results were used to size the independent workforce and profile work motivations and attitudes among independent and traditional workers. The survey results were weighted to reflect the demographics of the U.S.
To find out more about out how to apply the insights and findings from this year's report into your own workforce strategy, or develop compliant practices for your hybrid workforce, schedule a consultation with an MBO Partners expert today.
