The American labor market transformation accelerated over the past year with a 6.5% increase in full-time independent workers, bringing the total to 27.7 million Americans according to MBO Partners' annual State of Independence report. This 14th edition of the study, titled "The Independent by Choice Movement: Authentic and Intentional," documents a workforce increasingly rejecting traditional employment models in favor of self-directed careers offering greater flexibility and purpose.
Miles Everson, CEO of MBO Partners, interprets this growth as a clear rejection of the traditional employer-employee social contract. "The concept of stable benefits, job security, and mutual loyalty is unraveling," Everson states. The research shows 65% of full-time independent workers feel more secure in their careers than traditional employees, with only 34% of traditional jobholders expressing similar confidence despite their formal employment arrangements.
The demographic shift toward independent work is particularly pronounced among younger generations, with Millennials and Gen Z now comprising 59% of the independent workforce, up from 52% in 2023. This suggests a fundamental change in how younger workers define career success, prioritizing flexibility, purpose, and financial independence over conventional job structures. The study found nearly 60% of independent workers say their work aligns with their identity, compared to just 47% of traditional workers.
Financial viability of independent work continues to strengthen, with nearly one in five independent workers now earning more than $100,000 annually. The number of high-earning independents has grown to 4.7 million earning over $100,000 annually, up from 3 million in 2020. This economic success reflects the growing professionalization of independent work, with 61% of independent workers choosing this path by choice in 2024, and only 10% feeling forced into it.
Technology and globalization are accelerating independent workforce growth, with a 14% increase in full-time and part-time independent professionals providing services to businesses, reaching 11.2 million. These workers are increasingly leveraging specialized skills and generative AI tools, with 65% now using AI according to the State of Independence report available at https://www.mbopartners.com/state-of-independence, up from 37% in 2023. The global reach of independent workers has expanded significantly, with 31% reporting services to customers outside the U.S., nearly triple the proportion from 2012.
For HR vendors serving the human resources industry, this shift presents both challenges and opportunities in talent acquisition and management strategies. The growing preference for independent work requires vendors to develop new approaches to engage and manage non-traditional talent while addressing the needs of businesses adapting to this workforce transformation. The expansion of independent professionals providing business services suggests growing demand for vendor solutions that support contingent workforce management and independent contractor engagement.
As the independent workforce continues to grow, implications extend to labor laws, benefits structures, and social safety nets traditionally tied to employer relationships. The trend represents not just a change in employment status but a fundamental shift in how people view work, success, and personal fulfillment in their careers. With 42% of traditional workers considering career changes this year according to the research, the movement toward independent work appears poised for continued expansion, reshaping how HR vendors must approach talent ecosystems and workforce solutions.
