The American labor market is undergoing a profound transformation, as revealed by a new study from MBO Partners. The research shows a substantial 6.5% increase in full-time independent workers over the past year, bringing the total to 27.7 million Americans. This shift signifies a growing preference for self-employment and flexible work arrangements over traditional employment models.
The study, titled ‘The Independent by Choice Movement: Authentic and Intentional,’ is part of MBO’s annual State of Independence report, now in its 14th year. It paints a picture of a workforce increasingly drawn to independence, with nearly one in five independent workers now earning more than $100,000 annually. This trend highlights the expanding economic opportunities available to those who choose to forego traditional employment in favor of self-directed careers.
Miles Everson, CEO of MBO Partners, interprets this growth as a clear rejection of the traditional employer-employee social contract. ‘The concept of stable benefits, job security, and mutual loyalty is unraveling,’ Everson states. The study found that 65% of full-time independent workers feel more secure in their careers, reflecting a growing confidence in the viability of independent work as a career path.
The shift towards independent work is particularly pronounced among younger generations. Millennials and Gen Z now comprise 59% of the independent workforce, up from 52% in 2023. This demographic shift suggests a fundamental change in how younger workers view career success, prioritizing flexibility, purpose, and financial independence over conventional job structures.
The study also reveals a stark contrast in job satisfaction and security between independent workers and those in traditional employment. While 34% of traditional jobholders fear losing their jobs, and 42% are considering a career change this year, 65% of full-time independents report feeling more secure in their work. Moreover, nearly 60% of independent workers say their work aligns with their identity, compared to just 47% of traditional workers.
The rise of independent work is not merely a reaction to job market instability but increasingly a proactive choice. In 2024, 61% of independent workers chose this path by choice, with only 10% feeling forced into it. This trend is further evidenced by the growing number of high-earning independents, with 4.7 million now earning over $100,000 annually, up from 3 million in 2020.
Technology and globalization are playing crucial roles in fueling this growth. The study reports a 14% increase in the number of full-time and part-time independent professionals providing services to businesses, reaching 11.2 million. These workers are increasingly leveraging specialized skills and generative AI tools, with 65% now using AI, up from 37% in 2023. Additionally, the global reach of independent workers has expanded significantly, with 31% reporting services to customers outside the U.S., nearly triple the proportion from 2012.
This shift towards independent work has significant implications for both workers and businesses. For individuals, it offers the potential for greater autonomy, flexibility, and alignment between work and personal values. For businesses, it presents both challenges and opportunities in terms of talent acquisition and management strategies.
As the independent workforce continues to grow and evolve, it is likely to have far-reaching effects on the broader economy, labor laws, and social structures. The trend towards independent work represents not just a change in employment status, but a fundamental shift in how people view work, success, and personal fulfillment in their careers.
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