Happier, Healthier & Wealthier

State of Independence
in America 2022

State of Independence
in America 2022

Americans in greater numbers are opting for the flexibility, autonomy, control, and balance that working independently can provide.

Introduction: Realizing Gains in the Independent Workforce

The global system continues to absorb and cope with shocks-ranging from a pandemic to war, from inflation to supply chain issues. But one feature has remained constant amid all this change and disruption: the strength of the U.S. labor market.

There have never been more people working independently.

There are 64.6 million independent workers in 2022, up 26% over 2021. The number of Full-Time Independents, those regularly working more than 15 hours per week, soared 27% to 21.6 million- up from 15.3 million in 2019.

Total Number of Independents
(in millions)

69% growth
1-Number-of-Full-Time-Indiependents-Bar-Chart_Desktop
  • 0%

38.2

2020
  • 0%

51.1

2021
  • 0%

64.6

2022

Independents are becoming larger in number, more centered in the economy, more connected to one another and to companies large and small.

They find work in different ways even from a few years ago and have a fundamentally optimistic view about their own prospects, their health, and their purpose.

Independents are becoming larger in number, more centered in the economy, more connected to one another and to companies large and small.

They find work in different ways even from a few years ago and have a fundamentally optimistic view about their own prospects, their health, and their purpose.

Continued Remarkable Top-Line Growth

Continued Remarkable
Top-Line Growth

From 2020 to 2022, the total number of independents grew 69%, and the number of Full-Time Independents grew an equally impressive 59%, from 13.6 million in 2020 to 21.6 million in 2022.

The number of Full-Time Independents is soaring because the macroeconomic climate, the infrastructure, and the attitudes surrounding independent work are more supportive.

The number of Occasional Independents- people who earn money periodically by working at least monthly as an independent-rose from 15.8 in 2020 to 31.9 million in 2022, more than doubling.

The Great Realization is a dual-sided trend. Enterprises now recognize independents as an imperative part of their strategic growth agenda and a competitive workforce edge, and independents see greater benefits than ever before in having the control to do the work they love, the way they want.

Meet the Independents

The more the independent workforce grows and expands, the more closely it resembles the American workforce at large. As Boomers age out of the traditional workforce, and in some cases, retire altogether, many continue their careers as independents.

At the same time, Millennials and Gen Z are growing sharply as a percentage of total independents and are widely interested in self-employment and entrepreneurship.

2022 Independent Worker Demographics

pie-chart_values
Group 1251
circle_legend

All In Their Feelings

Independents are satisfied and confident

Overwhelmingly, independents say they want to work in this way. In 2022, 64% of independents said working this way was their choice entirely.

Satisfaction and confidence remained high, with the number of independents who say they feel more secure independently virtually unchanged from last year at 67%. The proportion who see independent work as less risky than a traditional job rose from 29% in 2021 to 33% in 2022.

work_choice_mobile

64%

25%

10%

  • 0%
  • 0%

My choice
completely

Due to factors
beyond my control

  • 0%

A combo
of both

76%

23%

1%

  • 0%

Very satisfied

Neutral

  • 0%
  • 0%

Very
dissatisfied

allinfeelings
second_slide_mobile

third-slider
mobile-slider3

Finding Work

For independents, finding work has always been about leveraging the power of peers, communities, and connections.

What's changed is the form the word-of-mouth takes, the forums in which it takes place, and the folks who provide the relevant information.

The real boom has come from online marketplaces and social media. Online talent marketplaces have increasingly become a key sales channel for independent workers who sell services to businesses.

This year, four in ten (41%) independents who provide services to businesses report finding work on talent platforms in 2022, up from 15% in 2015 and just 3% in 2012.

Using social media to find work or customers has also substantially increased. This year, 36% of independents found work on social media, up from 17% in 2015. More broadly, given the fact that people relate to, refer to, celebrate, and acknowledge one another on Twitter and LinkedIn, social media is word of mouth in 2022.

Use and Projected Use of Online Talent Marketplaces

(Full and part-time independent workers providing services)
Part-Time and Occasional Independent Numbers

(Full and part-time independent workers providing services)

2020

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

27%

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

33%

2022

41%

46%

2012

Used an online talent platform to find work

over the past 12 months

3%
Plan to use online talent platform to find
work over the next 12 months

 

4%

2015

2018

2019

24%

29%

15%

18%

22%

24%

2020

2021

27%

33%

40%

43%

2022

41%

46%

The Side Hustle is Real … and Growing

By far, the fastest growing segment of independent work is Occasional Independents. Most do this work to supplement their income. They have other paid jobs or are busy with other primary activities such as caregiving, homemaking, or attending school.

Other reasons for becoming an Occasional Independent include starting a passion business, testing the prospect of going independent with part-time work, or developing new skills.

Part-Time and Occasional Independent Numbers

(in millions)

Use and Projected Use of Online Talent Marketplaces

part-time-legend
part-time-values
  • 0%

12.1

 9.1
  • 0%
  • 0%
 10.8

 

 15
  • 0%
  • 0%

11.1

31.9

  • 0%

Since we first started tracking Occasionals, their numbers have more than tripled, growing from 9.1 million in 2015 to 31.9 million in 2022.

High-Income Independents

The number of independents who reported high incomes is growing rapidly, up 16% from last year, and it comes on the heels of a 27% increase in 2021.

Now, nearly 20% of Full-Time independents earns more than $100,000 annually.

Several key shifts and trends are driving this growth. Organizations are increasingly turning to highly skilled or external expert talent to achieve their business objectives.

Number of Independents Reporting Annual Earnings of $100k+
(in millions)

5-Independents-Earning-100k-Line-Chart_Mobile-ai
5-Independents-Earning-100k-Line-Chart_Desktop-values

Working From the Road:
The Continued Growth of Digital Nomads

Another Year of Digital Nomad Growth

Digital Nomads-people who embrace a location-independent, technology-enabled lifestyle- have moved from being eccentrics to mainstream in less than a decade. In 2022, 16.9 million American workers currently describe themselves as digital nomads, up a staggering 131% from the pre-pandemic year 2019.

131_percent_growth (1)
  • 0%

7.3

  • 0%

10.9

  • 0%

15.5

  • 0%

16.9

Another Year of
Digital Nomad Growth

Increased Interest in Independent Work

The COVID pandemic changed how workers viewed their jobs and how work fits into their lives. With more people actively seeking better work/life balance, shorter commutes, greater flexibility, and the ability to pursue their passions, the number and proportion of Americans reporting they plan on becoming independent workers are on the rise.

Interest in Becoming Independent

(Share of non Independents saying they will become Independent over the next 2-3 years)

  • Luck

    0%

13%

  • Luck

    0%

17%

two_values_bar

A Strong Foundation for Continued Growth

After 12 years of tracking the size and sentiments of the independent economy, we have finally reached a tipping point: Independent work is now seen as mainstream, be it via a side hustle or a full-time professional career. In a world where top talent is in shortage, many leading organizations are turning strategically to engage independent talent alongside or in lieu of full-time, traditional labor.

Many strides have yet to be made by the government, which needs to do further work to accept the size and impact of independent workers on the U.S. economy, as well as to recognize this vital and growing portion of the American workforce as an important labor contributor who desires independence and autonomy as a status, rather than preferring the at-times uncertain protection of traditional employment.

And still, changes need to be made to the structure and nature of work overall, with enterprises clearly articulating the importance, mix, and strategic value of utilizing independent labor alongside traditional full-time employees and enabling their organizations to both recruit and retain independents in a holistic total talent management approach, a concept often discussed but too rarely performed at efficient scale.

As societal and economic factors continue to drive pressure on enterprises to compete effectively for top talent- and more workers opt for the freedom and empowerment of self-employment- this important segment of the American and global workforce will continue to grow.

A Strong Foundation for Continued Growth

After 12 years of tracking the size and sentiments of the independent economy, we have finally reached a tipping point: Independent work is now seen as mainstream, be it via a side hustle or a full-time professional career. In a world where top talent is in shortage, many leading organizations are turning strategically to engage independent talent alongside or in lieu of full-time, traditional labor.

Many strides have yet to be made by the government, which needs to do further work to accept the size and impact of independent workers on the U.S. economy, as well as to recognize this vital and growing portion of the American workforce as an important labor contributor who desires independence and autonomy as a status, rather than preferring the at-times uncertain protection of traditional employment.

And still, changes need to be made to the structure and nature of work overall, with enterprises clearly articulating the importance, mix, and strategic value of utilizing independent labor alongside traditional full-time employees and enabling their organizations to both recruit and retain independents in a holistic total talent management approach, a concept often discussed but too rarely performed at efficient scale.

As societal and economic factors continue to drive pressure on enterprises to compete effectively for top talent- and more workers opt for the freedom and empowerment of self-employment- this important segment of the American and global workforce will continue to grow.

Understand how findings from the 2022 State of Independence will impact your business.

Publication-Thumbnail

Understand how findings from the 2022 State of Independence will impact your business.

corner_triangle.png

Understand how findings from the 2022 State of Independence will impact your business.

Publication-Thumbnail

Understand how findings from the 2022 State of Independence will impact your business.

Path-5572.png

Methodology

The findings in this research brief come from the 2022 MBO Partners State of Independence in America study survey, which was fielded in July 2022. This is the 12th consecutive year this study has been conducted. For the 2022 study, Emergent Research and Rockbridge surveyed 6,488 residents of the U.S. (aged 18 and older), including 934 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.
Path-5573.png

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.