A new study from MBO Partners reveals a significant transformation in the American labor market, highlighting a 6.5% increase in full-time independent workers, now totaling 27.7 million. This growth signals a shift away from traditional employment, as nearly one in five independent workers earn over $100,000 annually, reflecting expanding economic opportunities that offer Americans greater freedom and flexibility in their careers.
Rejection of Traditional Employment
“This 6.5% growth in full-time independents signals a clear rejection of the traditional employer-employee social contract,” stated Miles Everson, CEO of MBO Partners. He noted that the concepts of stable benefits, job security, and mutual loyalty are unraveling. The study indicates that 65% of full-time independent workers feel more secure in their careers, a sentiment that underscores their choice to pursue autonomy and forge their own paths.
Key Findings from the 2024 State of Independence Report
Now in its 14th year, MBO’s 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 leading this movement, with their combined share of the independent workforce rising from 52% in 2023 to 59% in 2024. As traditional employment becomes less appealing, these younger generations are redefining career success by prioritizing flexibility, purpose, and financial independence over conventional job structures.
Traditional Employment Under Pressure
The report reveals concerning trends in traditional employment:
- 34% of traditional jobholders fear job loss.
- 42% are contemplating a career change this year.
- In contrast, 65% of full-time independents feel more secure, and nearly 60% say their work aligns with their identity, compared to just 47% of traditional workers.
As the employer-employee social contract weakens, many workers are switching jobs more frequently or moving to independent work, leading to a steady decline in job tenure.
Independent by Choice: A New Era
In 2024, 61% of independent workers chose this path by preference rather than necessity, with only 10% feeling compelled to become independent. Confidence in independent work is growing, with 65% of full-time independents feeling more secure than they did in traditional jobs. Notably, 54% would not consider returning to payroll employment. The number of independents earning over $100,000 annually has also risen to 4.7 million, up from 3 million in 2020, illustrating the shift toward viewing independent work as a viable career strategy.
AI and Global Reach Propel Independent Growth
The number of full-time and part-time independent professionals providing services to businesses surged by 14% in 2024, reaching 11.2 million. Independents are climbing the value chain by leveraging specialized skills and generative AI, with 65% now using AI tools, a significant increase from 37% in 2023. AI has become a game changer, enhancing productivity and competitiveness, contributing to the rise in six-figure earners. Furthermore, thanks to platforms, marketplaces, and social media, independent workers are expanding their global reach, with 31% reporting they provide services to customers outside the U.S., nearly tripling the proportion from 2012.
“More people are turning to independent work,” Everson added. “This is not just a trend; it’s an inspiring shift, with a workforce determined to redefine success on its own terms.” As the landscape of employment continues to evolve, independent work presents a compelling alternative for those seeking greater control over their careers and livelihoods.
