Stronger
Together

State of Independence
in America 2023

State of Independence
in America 2023

Introduction: In 2023, the state of the independent worker is stronger.

In 2023, these factors worked in concert to support both an increase in supply and an increase in demand for independent workers. These developments are helping make independent work more prevalent, secure, and lucrative.

And in turn, the optimism, resilience, and skills of independent workers encourages the further growth of this vital sector which now encompasses some 72.1 million Americans, about 45% of the workforce.

Independents in America (by Type of Worker)

Independents in America
(by Type of Worker)

(Data in millions unless otherwise noted)

132%
Occasional Independent
91%
Full-Time Independent
8%
Part-Time Independent
28-SOI-Chart-No1-ai-values-bg1
28-SOI-Chart-No1-values (1)
2020-2023
89% Total Growth
72.1m Americans
132% Occasional Independent
91% Full-Time Independent
8% Part-Time Independent
2020-2023
89% Total Growth
72.1m Americans

We believe this is a result of three factors: demand, supply and technology.

Growing Demand

Eager to become more agile and flexible in their talent strategies, companies are becoming more careful and focused about adding headcount. As a result, corporations of all sizes are relying more on independent talent to fill both strategic and senior-level positions.

Expanding Supply

Baby boomers are aging out of full-time jobs and want or need to keep working. There is also a greater demand for flexibility and work-life balance. Meanwhile, inflation and underlying economic insecurity are pushing more people to pursue side gigs as ways to augment income.

Enabling Technology

Technology enables the growth of independent workers in both supply and demand. Hiring platforms and collaboration technologies make it easier for companies to find, hire, manage, and work with independents. Talent platforms and the ability to work remotely are making it easier to earn a good living as an independent.

We believe this is a result of three factors: demand, supply and technology.

Growing Demand

Eager to become more agile and flexible in their talent strategies, companies are becoming more careful and focused about adding headcount. As a result, corporations of all sizes are relying more on independent talent to fill both strategic and senior-level positions.

Expanding Supply

Baby boomers are aging out of full-time jobs and want or need to keep working. There is also a greater demand for flexibility and work-life balance. Meanwhile, inflation and underlying economic insecurity are pushing more people to pursue side gigs as ways to augment income.

Enabling Technology

Technology enables the growth of independent workers in both supply and demand. Hiring platforms and collaboration technologies make it easier for companies to find, hire, manage, and work with independents. Talent platforms and the ability to work remotely are making it easier to earn a good living as an independent.

These factors and shifts make up this year's theme, Stronger Together.

These factors and shifts make up this year's theme, Stronger Together.

The more people who work independently, the more who are empowered to keep doing so. The more they demonstrate the viability of this way of working to others, the more others want to do it. The more others want to do it, the more companies become comfortable engaging independents and reorienting their talent strategies.

Meet the Independents

The independent workforce closely resembles and reflects the American workforce and population at large. A reflection of the U.S. population, demographic trends are changing the shape of the workforce.

Older workers are increasingly aging out of the workforce.

Today, the oldest baby boomers are 77, and the youngest are 59. This cohort, which has been enormously influential on everything from politics to popular culture, is slowly declining and being replaced. We expect this number to continue its rapid decline.

Gen Xers (aged 44-58) are actively moving into independent work.

Generation X accounted for 29% of independent workers in 2023, up from 28% in 2022.

Millennials are moving into the prime of their careers and their influence in both the traditional and independent workforce is on the rise.

In 2023, millennials accounted for 33% of independents.

Gen Z are also on the rise and will grow in future years.

In 2023, Gen Z accounted for 19% of the independent workforce, up sharply from 15% in 2022.

In 2023, the gender breakdown of independents was 51% male and 48% female, a slight shift from 2022, when it was 49% male and 50% female. (The remaining 1% in both years is nonbinary.)

Independents by Cohort

(Seasonally adjusted)

2022

Male: 49% | Female: 50% | Nonbinary: 1%

28-SOI-Chart-No2-1
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2023

Male: 51% | Female: 48% | Nonbinary: 1%

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28-SOI-Chart-No2values-ai (1)
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Meet the Independents

The independent workforce closely resembles and reflects the American workforce and population at large. A reflection of the U.S. population, demographic trends are changing the shape of the workforce.

Older workers are increasingly aging out of the workforce.

Today, the oldest baby boomers are 77, and the youngest are 59. This cohort, which has been enormously influential on everything from politics to popular culture, is slowly declining and being replaced. We expect this number to continue its rapid decline.

Gen Xers (aged 44-58) are actively moving into independent work.

Generation X accounted for 29% of independent workers in 2023, up from 28% in 2022.

Millennials are moving into the prime of their careers and their influence in both the traditional and independent workforce is on the rise.

In 2023, millennials accounted for 33% of independents.

Gen Z are also on the rise and will grow in future years.

In 2023, Gen Z accounted for 19% of the independent workforce, up sharply from 15% in 2022.

In 2023, the gender breakdown of independents was 51% male and 48% female, a slight shift from 2022, when it was 49% male and 50% female. (The remaining 1% in both years is nonbinary.)

Independents by Cohort

(Seasonally adjusted)

2022

Male: 49% | Female: 50% | Nonbinary: 1%

28-SOI-Chart-No2-1
28-SOI-Chart-No2_values1

2023

Male: 51% | Female: 48% | Nonbinary: 1%

28-SOI-Chart-No2-ai
28-SOI-Chart-No2values-ai.png
soi_legends
soi_legends_mobile

Autonomy and Confidence Abound

Autonomy and
Confidence Abound

Attitudes towards independent work are changing, and more workers see it as a viable-and even preferred-alternative to traditional jobs.

Attitudes towards independent work are changing, and more workers see it as a viable-and even preferred-alternative to traditional jobs.

Wired Differently

To a degree, independent workers are simply wired differently. Working independently feeds an increasingly powerful impulse among people who want to be their own boss. In 2023, 80% of independent workers said they always wanted to be their own boss, and some 71% of independent workers say they don't like answering to a boss.

While money is a factor in the choice to work independently, most independents place higher priority on attributes like autonomy, flexibility, and control. For example, 70% of independents said, "doing something I like is important than making the most money", while 70% said, "flexibility is more important than making the most money".

Doing it By Choice

Doing it By Choice

In 2023, 63% said working independently was their choice entirely, and only 9% said it was due to factors outside their control, such as losing a job or not being able to find a job. In 2023, 72% of independents said it was easier to work as an independent than ever before, up from 70% in 2022.

Choice Consistent with 2022 and Back to Pre-Pandemic Levels

(Employment Choice)

  • 0%
%

2023

  • 0%
%
  • 0%
%
  • 0%
%

2020

  • 0%
%
  • 0%
%
  • 0%
%

2019

  • 0%
%
  • 0%
%
tabbed_4_legend

Highly Satisfied

Highly Satisfied

Independent workers have high levels of work satisfaction. In 2023, 77% of independent workers reported being very satisfied with independent work, and 78% plan to continue as an independent worker (59%) or build a bigger independent business (19%).

Satisfaction Remained Strong, 77% Reporting Being Very Satisfied with Independent Work

(Overall Satisfaction as an Independent Worker)

pbar_values
tabbed_legend_2

 

Safe and Secure

Safe and Secure

In 2011, only 32% of independents said they felt more secure working independently. But in 2023, fully 66% answered in the affirmative.

Independents Increasingly See Independence Being More Secure

(% of Independents Agreeing)

I Feel More Secure Working Independently

2015

32%

2016

38%

2017

43%

2018

49%

2019

53%

2020

66%

2021

68%

2022

67%

2023

66%


 

Happier and Healthier

Happier and Healthier

As workers place a greater focus on mental and physical health, the benefits of independent work are clear. In 2023, as in 2022, 87% of Full-Time Independents said they were happier working on their own and, 78% of Full-Time Independents said working on their own is better for their health.

Happier and Healthier Full-Time Independents

Wealthier, Too

Working independently can also help build healthy balance sheets. In 2023, 53% of Full-Time Independents reported that they earned more working on their own than they could at traditional jobs.

%

I am happier working
on my own

%

Working on my own is
better for my health

%

Enduring Challenges

Over the years of this study, the challenges cited by independents have remained consistent, but their prevalence has generally declined. In 2023, the combination of a somewhat weaker macroeconomic climate and higher inflation were weighing on independents.

The challenge cited most frequently is not enough predictable income. In 2023, nearly half of independents (49%) noted such a challenge. That's up notably from 43% in 2022. In a related finding, the next most cited challenge is worrying about their next job or project pipeline (33%). And in 2023, 29% said lack of job security was a challenge, up from 25% in 2022. In a sign that inflation, especially in health care, is front and center, 28% of independents cited concern about benefits as a challenge, up from 24% in 2022.

The Procyclical Effect

In 2023, 45% of independent workers and 41% of traditional workers said more of their friends are working independently. In 2020, by contrast, only 39% of independents and 25% of traditional workers agreed. And in 2015, the first year we asked this question, 31% of independents and 19% of traditional workers agreed that more of their friends were working as independents.

More of My Friends are Working Independently

(% agreeing)

  • 0%
  • 0%
  • 0%

Independent
Workers

  • 0%
  • 0%

Traditional
Workers

  • 0%
  • 0%
  • 0%
circle_pbar_legend
circular_legend

Wired Differently

To a degree, independent workers are simply wired differently. Working independently feeds an increasingly powerful impulse among people who want to be their own boss. In 2023, 80% of independent workers said they always wanted to be their own boss, and some 71% of independent workers say they don't like answering to a boss.

While money is a factor in the choice to work independently, most independents place higher priority on attributes like autonomy, flexibility, and control. For example, 70% of independents said, "doing something I like is important than making the most money", while 70% said, "flexibility is more important than making the most money".

Doing it By Choice

In 2023, 63% said working independently was their choice entirely, and only 9% said it was due to factors outside their control, such as losing a job or not being able to find a job. In 2023, 72% of independents said it was easier to work as an independent than ever before, up from 70% in 2022.

Choice Consistent with 2022 and Back to Pre-Pandemic Levels

(Employment Choice)

doing_it

Highly Satisfied

Independent workers have high levels of work satisfaction. In 2023, 77% of independent workers reported being very satisfied with independent work, and 78% plan to continue as an independent worker (59%) or build a bigger independent business (19%).

Satisfaction Remained Strong, 77% Reporting Being Very Satisfied with Independent Work

(Overall Satisfaction as an Independent Worker)

highly

Safe and Secure

In 2011, only 32% of independents said they felt more secure working independently. But in 2023, fully 66% answered in the affirmative.

Independents Increasingly See Independence Being More Secure
(% of Independents Agreeing)

I Feel More Secure Working Independently

tab_table_column

Happier and Healthier

As workers place a greater focus on mental and physical health, the benefits of independent work are clear. In 2023, as in 2022, 87% of Full-Time Independents said they were happier working on their own and, 78% of Full-Time Independents said working on their own is better for their health.

Happier and Healthier Full-Time Independents

tab_4_heart

Wealthier, Too

Working independently can also help build healthy balance sheets. In 2023, 53% of Full-Time Independents reported that they earned more working on their own than they could at traditional jobs.

Enduring Challenges

Over the years of this study, the challenges cited by independents have remained consistent, but their prevalence has generally declined. In 2023, the combination of a somewhat weaker macroeconomic climate and higher inflation were weighing on independents.

The challenge cited most frequently is not enough predictable income. In 2023, nearly half of independents (49%) noted such a challenge. That's up notably from 43% in 2022. In a related finding, the next most cited challenge is worrying about their next job or project pipeline (33%). And in 2023, 29% said lack of job security was a challenge, up from 25% in 2022. In a sign that inflation, especially in health care, is front and center, 28% of independents cited concern about benefits as a challenge, up from 24% in 2022.

The Procyclical Effect

In 2023, 45% of independent workers and 41% of traditional workers said more of their friends are working independently. In 2020, by contrast, only 39% of independents and 25% of traditional workers agreed. And in 2015, the first year we asked this question, 31% of independents and 19% of traditional workers agreed that more of their friends were working as independents.

More of My Friends are Working Independently

(% agreeing)

  • 0%
  • 0%
  • 0%

Independent
Workers

  • 0%
  • 0%

Traditional
Workers

  • 0%
  • 0%
  • 0%
circle_pbar_legend
circular_legend

Demand and Supply

Demand: Why Independents Fit in Better than Ever Before

Engaging with independents has thus emerged as a key enterprise strategy to access the best talent, regardless of location, full-time status or in-office presence. In short, skilled independent workers are increasingly calling the shots.

MBO's August 2022 Contingent Labor Imperative study, which surveyed HR leaders from 600 organizations, found that the average company reports that contingent labor (defined as independent workers and other forms of nonemployee labor) makes up 28% of their workforce and that the proportion was expected to grow to 38% by the end of 2027.

Deloitte and MIT's Workforce Ecosystem study series found that 82% of organizations are taking steps to improve how they integrate and manage independent workers as part of their workforces, with 1 in 5 (22%) being far along in this process.

Supply: More Income Streams Help Independents Test Passion Goals, As Well As Address Economic Uncertainty

The last several years have seen a significant increase in the number of Occasional Independents, from 15.8 million in 2020 to 36.6 million in 2023-an increase of 130% in three years.

One interesting subsegment of Occasional Independents are those who have side gigs providing freelancing or consulting services in addition to holding a traditional job. Just under 1 in 7 traditional job holders (15%) reported having this type of side gig in 2023. This group uses the skills they've developed in their primary job to tap into the growing demand for freelancers and consulting services.

Future Perfect

In general, the more people who do independent work and have success with it, the more they want to keep doing it.

In 2023, some 77% of Full-Time Independents said they are optimistic about the future of their career, up from 74% in 2022. By contrast, only 67% of traditional jobholders said they were optimistic.

In 2023, fully 78% of independents said they plan to keep working independently, as opposed to seeking a permanent full-time (12%) or part-time job, retiring, or doing something else. That's up from 73% in 2022.

Familial Responsibilities Drive Independent Work

Another significant driver toward independent work is the need to provide care-to parents, spouses, and partners, or children-while making a living. About 40% of independents are caregivers, and 62% said being a caregiver influenced their decision to work independently. That sentiment is especially strong among females (68%), especially female millennials (79%).

Contingent Labor's Current & Expected Share of Total Workforce

  • 0%

Current share of workforce, on average

  • 0%

Expected share of workforce in 18 months

  • 0%

Expected share of workforce in 5 years

More Workers are Choosing to Become Full-Time Independent Workers

The number of Full-Time Independents has also significantly grown, increasing by 20% in 2023, reaching 26 million. The growth since prior to the pandemic is even greater, up 73% since 2019. This is a substantial increase in the growth rate for Full-Time Independent workers, which averaged just 2% between 2011 and 2019.

Full-Time Independent Workers

(Data in millions)

  • 13.6
    0%
    2020
  • 17
    0%

    2021
  • 21.6
    0%
    2022
  • 26
    0%

    2023

High-Earning Independents and Business Builders Continue to Grow

One of the fastest growing segments of independents over the 13-year course of this study has been independents who report earning $100,000 or more in the prior year. The reasons are similar to the drivers of growth for Full-Time Independents: increased demand for highly skilled independent workers and the desire for greater work/life flexibility from workers who have these in-demand skills.

An important sub-finding brings a greater focus to the core confidence in the independent workforce. In 2023, 19% of independents said they plan to build a bigger business, consistent with post-pandemic norms. This compares to 11-12% between 2012 and 2020.

Number of $100k+ Independents Increased 5% to 4.6 Million

(Data in millions)

million_values_4.6
28-SOI-Chart-No10-ai
  • 0%
  • 0%
  • 0%
  • 0%
  • 0%
  • 0%
  • 0%
  • 0%
  • 0%
  • 0%
  • 0%
  • 0%
  • 0%
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Demand and Supply

Demand: Why Independents Fit in Better than Ever Before

Engaging with independents has thus emerged as a key enterprise strategy to access the best talent, regardless of location, full-time status or in-office presence. In short, skilled independent workers are increasingly calling the shots.

MBO's August 2022 Contingent Labor Imperative study, which surveyed HR leaders from 600 organizations, found that the average company reports that contingent labor (defined as independent workers and other forms of nonemployee labor) makes up 28% of their workforce and that the proportion was expected to grow to 38% by the end of 2027.

Deloitte and MIT's Workforce Ecosystem study series found that 82% of organizations are taking steps to improve how they integrate and manage independent workers as part of their workforces, with 1 in 5 (22%) being far along in this process.

Supply: More Income Streams Help Independents Test Passion Goals, As Well As Address Economic Uncertainty

The last several years have seen a significant increase in the number of Occasional Independents, from 15.8 million in 2020 to 36.6 million in 2023-an increase of 130% in three years.

One interesting subsegment of Occasional Independents are those who have side gigs providing freelancing or consulting services in addition to holding a traditional job. Just under 1 in 7 traditional job holders (15%) reported having this type of side gig in 2023. This group uses the skills they've developed in their primary job to tap into the growing demand for freelancers and consulting services.

Future Perfect

In general, the more people who do independent work and have success with it, the more they want to keep doing it.

In 2023, some 77% of Full-Time Independents said they are optimistic about the future of their career, up from 74% in 2022. By contrast, only 67% of traditional jobholders said they were optimistic.

In 2023, fully 78% of independents said they plan to keep working independently, as opposed to seeking a permanent full-time (12%) or part-time job, retiring, or doing something else. That's up from 73% in 2022

Familial Responsibilities Drive Independent Work
Another significant driver toward independent work is the need to provide care-to parents, spouses, and partners, or children-while making a living.
About 40% of independents are caregivers, and 62% said being a caregiver influenced their decision to work independently. That sentiment is especially strong among females (68%), especially female millennials (79%).

Contingent Labor's Current & Expected Share of Total Workforce

  • 0%

Current share of workforce, on average

  • 0%

Expected share of workforce in 18 months

  • 0%

Expected share
of workforce in
5 years

More Workers are Choosing to Become Full-Time Independent Workers

The number of Full-Time Independents has also significantly grown, increasing by 20% in 2023, reaching 26 million. The growth since prior to the pandemic is even greater, up 73% since 2019. This is a substantial increase in the growth rate for Full-Time Independent workers, which averaged just 2% between 2011 and 2019.

Full-Time Independent Workers

(Data in millions)

  • 13.6
    0%
    2020
  • 17
    0%

    2021
  • 21.6
    0%
    2022
  • 26
    0%

    2023

High-Earning Independents and Business Builders Continue to Grow

One of the fastest growing segments of independents over the 13-year course of this study has been independents who report earning $100,000 or more in the prior year. The reasons are similar to the drivers of growth for Full-Time Independents: increased demand for highly skilled independent workers and the desire for greater work/life flexibility from workers who have these in-demand skills.

An important sub-finding brings a greater focus to the core confidence in the independent workforce. In 2023, 19% of independents said they plan to build a bigger business, consistent with post-pandemic norms. This compares to 11-12% between 2012 and 2020.

Number of $100k+ Independents Increased 5% to 4.6 Million

(Data in millions)

millionin2023

Finding Work

In 2023, 40% of independents who provide services to businesses said they had used an online talent platform to find work in the past 12 months, and 47% said they planned to do so in the next 12 months.

The average user uses 3.2 platforms, and 34% of those using platforms say it is their primary source of work.

Used an online talent platform to find work over past 12 months

Plan to use online talent platform to find work over next 12 months
2012

3%

4%
2023

40%

47%

Finding Work

In 2023, 40% of independents who provide services to businesses said they had used an online talent platform to find work in the past 12 months, and 47% said they planned to do so in the next 12 months.

The average user uses 3.2 platforms, and 34% of those using platforms say it is their primary source of work.

Used an online talent platform to find work over past 12 months

Plan to use online talent platform to find work over next 12 months
2012

3%

4%
2023

40%

47%

Independents are Experimenting With AI, (Most) Don't Fear It

In these early days, it is unclear precisely how this powerful new technology will impact the workplace across the board. Our survey results show that independent and traditional workers have roughly the same familiarity with Generative AI and ChatGPT, with 18% of independents saying they are very familiar, 29% somewhat familiar, and 23% a little familiar.

Few independents are concerned about AI and ChatGPT taking their jobs, however.

Independents are Experimenting With AI, (Most) Don't Fear It

In these early days, it is unclear precisely how this powerful new technology will impact the workplace across the board. Our survey results show that independent and traditional workers have roughly the same familiarity with Generative AI and ChatGPT, with 18% of independents saying they are very familiar, 29% somewhat familiar, and 23% a little familiar.

Few independents are concerned about AI and ChatGPT taking their jobs, however.

Conclusion: A Stronger Future

Over the last decade the independent workforce has been building a strong track record, increasing its footprint, and solidifying its foundation. Independent work has emerged as an important source of talent for businesses and a vital source of energy for the U.S. economy.

The spirit, commitment, and talent of this growing legion of workers have a compounding effect. More people than ever are pursuing the path of

independent work and having success at it. They are becoming more integrated with the talent strategies of companies of all shapes and sizes. By proving their worth and reliability daily, they are both encouraging others to pursue the path and further shaping the system to be more conducive to independent work.

In a changed world-one driven by rising costs and macroeconomic shocks, one in which remote work has become commonplace, and one in which more people seek to align their values, purpose, and life goals with their jobs-we expect the share of the workforce working independently to continue to grow.

The spirit, commitment, and talent of this growing legion of workers have a compounding effect. More people than ever are pursuing the path of independent work and having success at it. They are becoming more integrated with the talent strategies of companies of all shapes and sizes. By proving their worth and reliability daily, they are both encouraging others to pursue the path and further shaping the system to be more conducive to independent work.

In a changed world-one driven by rising costs and macroeconomic shocks, one in which remote work has become commonplace, and one in which more people seek to align their values, purpose, and life goals with their jobs-we expect the share of the workforce working independently to continue to grow.

Four broad, long-term trends will drive this growth:

Workers increasingly want the autonomy, control, and flexibility independent work provides.

This is especially true for three groups:

(1) skilled professionals, who are in demand due to the strong economy and the growing number of areas experiencing talent shortages;

(2) aging Baby Boomers, who are looking for more flexible, independent encore careers; and

(3) younger workers and especially Gen Zers, many of whom are choosing the "work to live" rather than the "live to work" ethos of prior generations.

Organizations of all sizes are increasing their use of independent workers to improve business flexibility and agility.

Hiring independent workers also provides access to in-demand, scarce talent that is not easily hired on traditional terms. And because independent talent can be hired as needed, it often can lower employment costs.

The number of workers pursuing side gigs will continue to grow.

For many, the need for supplemental income due to increasing costs, especially for housing, health care, and education, will require multiple sources of income. For others, the desire to pursue a passion or explore new opportunities will lead to having more than one job.

Technology empowers independent workers, making becoming independent easier, cheaper, and less risky.

The Internet and digital technologies improve customer connections and independent worker efficiency; social media and online marketplaces make it easier to find new customers; and technology has made working remotely-a staple for many independent workers-more acceptable and commonly adopted.

Four broad, long-term trends will drive this growth:

Workers increasingly want the autonomy, control, and flexibility independent work provides.

This is especially true for three groups:
 

(1) skilled professionals, who are in demand due to the strong economy and the growing number of areas experiencing talent shortages;
 

(2) aging Baby Boomers, who are looking for more flexible, independent encore careers; and
 

(3) younger workers and especially Gen Zers, many of whom are choosing the "work to live" rather than the "live to work" ethos of prior generations.

Organizations of all sizes are increasing their use of independent workers to improve business flexibility and agility.
Hiring independent workers also provides access to in-demand, scarce talent that is not easily hired on traditional terms. And because independent talent can be hired as needed, it often can lower employment costs.

The number of workers pursuing side gigs will continue to grow.
For many, the need for supplemental income due to increasing costs, especially for housing, health care, and education, will require multiple sources of income. For others, the desire to pursue a passion or explore new opportunities will lead to having more than one job.

Technology empowers independent workers, making becoming independent easier, cheaper, and less risky.
The Internet and digital technologies improve customer connections and independent worker efficiency; social media and online marketplaces make it easier to find new customers; and technology has made working remotely-a staple for many independent workers-more acceptable and commonly adopted.

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Methodology

The findings in this research brief come from the 2023 MBO Partners State of Independence in America study survey, which was fielded in July 2023. This is the 13th consecutive year this study has been conducted. For the 2023 study, Emergent Research and Rockbridge surveyed 6,575 residents of the U.S. (aged 18 and older), including 1,132 independent workers. The results were used to size the independent workforce and profile work motivations and attitudes among independent and traditional workers. The survey results were weighted to reflect the demographics of the U.S.
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About MBO Partners

MBO Partners is a deep job platform that connects and enables independent professionals and microbusiness owners to do business safely and effectively with enterprise organizations. Its unmatched experience and industry leadership enable it to operate on the forefront of the independent economy and consistently advance the next way of working.

For more information, visit our website.