There are 38.2 million independent workers, nearly a quarter of the total U.S. workforce, and they generated $1.21 trillion in revenue over the past year.
Further, independent workers have shown consistent growth in their ability to tap into global markets. In 2020, 28% reported that they did business outside of the U.S., up from 12% in 2013.
THE FULL REPORT IS FOUND HERE
While they’ve felt the pain of the COVID-19 economic fallout, they remain happy, healthy and secure, according to new research from MBO Partners.
The company released its 10th annual State of Independence in America report, a found five key emerging trends.
No. 1: Independent work the new American dream
There is no question that the pandemic forced many people who prefer full-time payroll jobs into independent work. Between 2011 and 2019, the percentage of independent workers saying it was their choice completely rose from 55% to 67%.
In 2020 this trend was disrupted with 59% saying it was completely their choice. One in 11 Americans says they want to go independent.
No. 2: There’s a sinkhole in the workforce, it’s swallowing women
The share of women independents fell from averaging around 50% throughout the study to 42% in 2020. This was likely because a significant number of women work in roles impacted by COVID-19, the company said. They were also more likely to leave or cut back on work due to COVID-induced caretaking requirements.
No. 3: Underground independence has tunneled into the mainstream
Over the past decade, workers up and down the income ladder have found that their compensation simply hasn’t kept up with rising costs. In 2020, the number of those with side-gigs rose 5.3% to 15.8 million, up 51% from 10.5 million in 2016.
No. 4: ‘Hiving’ and nomadism are COVID survival strategies
Staffing and the office will never be the same, MBO Partners claims. Independent workers are banding together in hive-like setups or teams, with some 19% of full-time independents and 12% of traditional job workers indicating that they have teamed up with other independent workers or microbusiness, in the past 12 months.
The office is also being redefined with 10.9 million American workers describing themselves as digital nomads, an increase of 49% from 2019. Further, in 2020, the number of traditional workers working as digital nomads grew 96%, from 3.2 million to 6.3 million.
No. 5: Skilled independents are on the rise
Skilled professionals are one of the fastest-growing segments of the independent workforce, with their numbers rising in each of the past 10 years. In 2011, there were 4.5 million skilled independents and in 2020 there are 7.7 million, representing a 71% increase.
In 2011, when MBO Partners launched this research, independent work was still something of a novelty, often a necessity driven by economic circumstances. Today some 48% of U.S. adults report either currently working or having worked as an independent during their career, and 54% will do so by 2025.
“Independent work has grown from a novelty to a mainstream way of working,” Miles Everson, CEO of MBO Partners, said in a statement. “We’ve reached an important inflection point in the American workforce, where workers not only desire to control their own careers, but businesses increasingly realize that accessing top talent and skills means needing to re-think how they structure their workforces and that in order to be competitive, they must leverage independent professionals as part of this modern business model.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
