The Independent Workforce Is 64.6 Million Strong: Are You Prepared?

MBO’s 12th Annual State of Independence in America Report , a yearly pulse check of the independent workforce as a part of the future of work, reveals a vast workforce nearly 65 million strong whose shape and focus are constantly changing.

We have reached a tipping point: independent work is seen as mainstream, and more than 50% of Americans are, or have been independent at some point in their careers. In a marketplace where top skillsets are hard to find, many organizations—including leading enterprises—are strategically engaging independent talent alongside or instead of full-time, traditional labor.

But today, too many enterprises still see independents as a commodity or a ‘have to use,’ rather than what they are: a strategic, powerful, and necessary part of today’s workforce mix.

Making the case about why to use independents as part of your 2023 workforce strategy? Here are 5 facts you need to know, today, fresh from the new report:

Talent Are in Control. The number of Full-Time Independents, those regularly working 15 hours or more weekly, increased by 27% to 21.6 million, up from 15.3 million in 2019. These workers are earning more than ever before, with fully one in five making more than $100,000 annually, with in-demand skills in areas like technology, marketing, and project management. In a world where open jobs outnumber job seekers, and where organizations often declare critical skills gaps, talent still has the upper hand.

Satisfaction is High. Even amidst a turbulent economy, self-reported feelings on happiness, health, and perceived financial security are on par with or the highest they’ve been in MBO’s 12 years of data. Seventy-six percent of respondents indicated that they are “very satisfied,” happier (87%), in better health (80%), and more financially secure (67%) than their traditionally employed counterparts.

The Side Hustle Is Real. Occasional Independents— people who earn money periodically by working at least once a month as an independent— doubled in number from 2020 (15.9 million) to 2022 (31.9 million). Motivations cited by these side hustlers included supplementing income, pursuing a passion that may not work as a profession, and getting a feel for the independent working life before committing full-time. What does that mean for enterprises? Even your full-time population is likely testing the independent waters.

Gen Z is Coming in Hot. Boomers and Gen Xers make up just over half of independent workers, while Millennials (the largest cohort) and Gen Z make up 49%. This offers companies a wide range of options in terms of depth of expertise and cost-effectiveness. That said, we expect to see Gen Z (ages 18-26), a generation defined by independence, enter the independent workforce in high numbers over the next few years.

Diversity is On the Rise. Between 2019 and 2022, the proportion of white independents fell from 84% to 77% while African Americans doubled from 7% to 14%. In the subset called the creator economy, those who earn money by creating and distributing digital content, the percentage of African Americans is higher at 20%.

Recognition that this population is far from one-size-fits-all is also necessary. Many strides have yet to be made by the government to address and support the size and impact of independent workers on the U.S. economy. Changes need to be made to prepare for the Future of Work, with the strategic value of incorporating independent labor with traditional full-time employees recognized as a key value proposition in the business world.

Further, enterprises must enable their organizations to both recruit and retain independents using a total talent management approach, a concept often discussed but too rarely performed effectively at scale.

As market factors continue to increase the value of independent talent, this important segment of the American workforce will keep growing.

Want more information??Download?the 2022 report to gain the full picture.

Trending Topics:

●?????Even though layoffs in the U.S. remain historically low, the news of massive layoffs in the tech industry have had a “chilling effect on everybody.” Why? According to one observer, there has been a noticeable decrease in hiring intentions and the desire to switch jobs. Despite this, business experts and economists are in agreement that the mass layoffs in tech won’t affect the rest of the labor market anytime soon .

●?????In a survey conducted with 250 business leaders at U.S. tech companies, it has been found that most tech executives are willing to invest in remote work to cut costs and increase efficiency during any future recession . This comes amidst concerns of a possible U.S. recession.

●?????According to a New Zealand non-profit’s research, it has been found that a 4-day work week has led to an increase in revenue, lower resignations, and higher employee engagement . Thirty-three (33) companies from the U.S., Australia, Ireland, and the United Kingdom participated in the study.

●?????Remote work surged in popularity and adoption due to the pandemic. Even though businesses have opened their doors for on-site work, economists argue that remote work is here to stay and will likely endure as a fixture in the U.S. job market moving forward .

●?????The era of remote work has given birth to remote micromanagers, say experts. According to them, these micromanagers tend to frequently ask employees for task updates and check-in calls. The effect? Workers who feel micromanaged tend to be less engaged, less motivated, and less productive, which could lead to an uptick in resignations .

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