Independent Workforce Surges as 27.7 Million Americans Choose Self-Employment Over Traditional Jobs

The American labor market is undergoing a transformative shift as new research from MBO Partners reveals a 6.5% increase in full-time independent workers, now reaching 27.7 million Americans. This growth represents a clear rejection of traditional employment models, with nearly one in five independent workers earning more than $100,000 annually, demonstrating the expanding economic opportunities available outside conventional job structures.

According to Miles Everson, CEO of MBO Partners, this movement signals the unraveling of the traditional employer-employee social contract. The study found that 65% of full-time independent workers feel more secure in their careers than they did in traditional jobs, with their confidence reflected in their decision to pursue autonomy and forge their own professional paths. The 14th annual State of Independence report, titled The Independent by Choice Movement: Authentic and Intentional, shows that 72.7 million Americans are choosing independent work in 2024.

Millennials and Gen Z are driving this transformation, with their combined share of the independent workforce rising from 52% in 2023 to 59% in 2024. These younger generations are redefining career success by prioritizing flexibility, purpose, and financial independence over conventional job structures. The study reveals concerning trends for traditional employment, with 34% of traditional jobholders fearing job loss and 42% considering career changes this year.

In stark contrast to traditional workers' anxieties, 65% of full-time independents feel more secure, and nearly 60% report that their work aligns with their personal identity, compared to just 47% of traditional workers. The research indicates that independent work has evolved from a necessity to a conscious choice, with 61% of independent workers choosing this path voluntarily and only 10% feeling forced into it. Confidence in independent work continues to grow, with 54% of independents stating they wouldn't return to payroll employment.

Technology plays a crucial role in this expansion, as the number of independent professionals providing services to businesses surged by 14% to reach 11.2 million. These professionals are leveraging specialized skills and generative AI tools, with 65% now using AI compared to just 37% in 2023. The global reach of independent workers is also expanding dramatically, with 31% reporting services to customers outside the U.S., nearly triple the proportion from 2012. This technological advancement, combined with platform accessibility, has created 4.7 million independents earning over $100,000 annually, up from 3 million in 2020.