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The State of Independence
in America
2019 REPORT The Changing Nature of the American Workforce
About the Study
The 2019 MBO Partners State of Independence in America is
the 9th consecutive year this study has been conducted. Since
2011, independent workers have completed over 21,000 in-
depth surveys and over 1,400 independent workers have been
interviewed in-person as part of this study series.
For the 2019 study, Emergent Research and Rockbridge
Associates conducted an online survey in March of 2018. This
survey had responses from 3,584 residents of the U.S. (aged 21
and older); the results were used to size the independent
workforce and profile motivations among independent and
traditional workers (margin of error: +/-1.7 percent). The data
was weighted to reflect the demographics of the U.S. The 2019
results are generally statistically consistent with the survey
results from the prior 8 years.
View the report online: www.mbopartners.com/state-of-
independence
Key Findings
3
 Full-Time Independents: A Solid Core Amidst a Very Strong Job Market
 The Rise of Occasional Part-Time Independents
 Youth Will Be Served: The Rise of the Millennials
 Working in a Networked World: Technology, Platforms, and Globalization
 The Financial Well-Being of Independents
Independence Remains a Viable Career Path for Many
4
 Full-Time Independents declined by 3.1% to 15.3 million.
 Strong traditional job market pulling people back to
traditional employment, especially reluctant independents
 Part-Time Independents (less than 15 hours per week) declined
by 2.7% to 10.8 million from 11.1 million in 2018.
 Number of occasional independent workers increased by 6.3% to
15 million, up from 14.1 million in 2018
 Economic factors driving need for supplemental income
 Side gigs have become more popular
 Digital platforms make it easier to pick up work
TOTAL INDEPENDENCE REMAINS FLAT, EVEN AGAINST THE STRONGEST JOBS MARKET IN RECENT HISTORY
2014 2016 20182013 2015 2017 2019
FULL-TIME
INDEPENDENT
WORKERSINTHE
U.S.
20122011
16
Million
16.9
Million
17.7
Million
17.8
Million
17.8
Million
16.9
Million
16.2
Million
15.8
Million
15.3
Million
The Number of Occasional Independents Continues to
Grow Rapidly
5
10.5
12.9
14.1
15
2016 2017 2018 2019
NumberofOccasionalIndependentsin theUnitedStates
(in millions)
“For a large chunk of the American population, part-
time or occasional independentwork has become
crucial tomaking ends meet andshore upshaky
finances. Themarket issupplying a solution, in the form
of platforms and marketplaces that enableoccasional
work or sidegigs.”
- MBO Partners State of Independence
Reluctant Independents are Leaving
6
Full-Time Independent Workers Declines Slightly as Baby
Boomers Age out of the Workforce
7
Independent Satisfaction is the Highest it has Ever Been
8
13% RESPONDED 7, SO ROUGHLY 9 OUT OF 10 ARE SATISFIED OR HIGHLY SATISFIED
4%
3%
3%
3%
2%
2%
2%
2%
1%
38%
27%
33%
34%
34%
33%
24%
26%
23%
58%
70%
64%
63%
63%
65%
74%
72%
76%
2011
2012
2013
2014
2015
2016
2017
2018
2019
Very Dissatisfied (1-3)
Neutral (4-7)
Very Satisfied (8-10)
Full-Time Independents Choose to Work this Way
9
55%
57%
56%
53%
58%
59%
65%
63%
67%
15%
13%
14%
13%
9%
10%
9%
8%
7%
30%
30%
30%
34%
32%
30%
26%
26%
26%
2011
2012
2013
2014
2015
2016
2017
2018
2019
My choice completely
A result of factors
beyond my control
A combination of both
EmploymentChoice
People Plan to Continue Working as Independents
10
PERCENTAGE OF RELUCTANT INDEPENDENTS AT LOWEST LEVEL IN 8 YEARS
Continue working as an
independent worker
Build a larger business
Seek a permanent, full-time job
Seek a permanent, part-time job
Retire
Stop working altogether
11%
18%
2%
3%
1%
16%
15%
2%
5%
2%
2011 2015
63%
15%
13%
2%
4%
1%
2016
61%
14%
10%
4%
6%
1%
64%
11%
3%
6%
3%
2017 2018
70%
12%
7%
1%
7%
2%
2019
12%
63% 58%
How Independents Find Work:
11
WORD OF MOUTH DOMINATES, BUT SOCIAL MEDIA & ONLINE TALENT MARKETPLACES ARE GROWING RAPIDLY
Top Methods of Finding Assignments
WordofMouth SocialMedia&
OnlineTalent
Marketplaces
OnlineCommerce
Marketplaces(eBay,Etsy,
Airbnb)
Agency/Broker FormerEmployer
Top Way
Top 3 Ways
46%
64%
17%
30%
9%
15%
8%
15%
6%
17%
Usage of Online Talent Marketplaces Continues to Expand
12
 Online talent marketplaces increasingly becoming just another sales channel for many independent workers
 Based on interviews and other research, the main uses of online marketplaces are to:
 Fill in gaps in schedules
 Find new clients, especially for those who are new or starting up
 Learn new skills
 Explore new markets
 There is a lot of testing and experimentation with marketplaces going on
MANY INDEPENDENTS SUPPLEMENT TRADITIONAL CHANNELS FOR FINDING WORK WITH ONLINE MARKETPLACE
USE
Used an online talent platform to find
work over the past 12 months
Plan to use an online talent platform
to find work over the next 12 months
4% 8%
2012 2013
14%
16%
2014
15%
18%
15%
2015 2016
20%
25%
2017
18%
3% 5% 22%
2018
24%
29%
2019
24%
Millennials are Most Likely to Find Work Via an Online Talent
Marketplace
13
Boomers
Gen X
Millennials
13%
15%
38%
Use of talent marketplaces
by age cohort
Economic Contribution
14
Over the past year, independent workers generated roughly $1.28 trillion of revenue for the U.S. economy, equal to about
6.2 percent of U.S. GDP (2018), or the entire economic output of Spain.
Independents Contribute Significantly to the Global Economy
15
=INDEPENDENTSWHO PROVIDEGOODS/ SERVICES TOCUSTOMERSOUTSIDEOF THE U.S.
Remote and Dispersed Work is on the Rise for All
16
47% of traditional, full time employees report
working remotely at least some of the time.
 19% work remotely half of the time
 12% work remotely full time
83% of full time independent workers report
working remotely at least some of the time.
 51% work remotely more than half of the time
 37% work remotely full time
Meet the Digital Nomad
17
A DEMOGRAPHIC PROFILE
Many keep costs down by combining
low-cost living with earning income at
the wage rates of higher cost
locations.
Geoarbitrage
report earning $75,000 or more
per year
790,000
are part-timers and many work only
part of the year. As a result, their
income from varies widely.
46%
are female and over half (54%) are
older than 38 years old
31%
By the Numbers
18
4.1 million
independent workers identify as digital nomads*
16.1 million
Americans say they will become digital nomads over the next 2-3 years
41 million
Americans say they may become digital nomads over the next 2-3 years
3.2 million
traditional workers identify as digital nomads*
Income Scales with Age: Boomers are the Big Earners
19
$52,200
$71,500
$84,000
Full-Time
Independent
Workers Average
Earnings by Age
Cohort
Millennials
Gen X
Boomers
Those with Traditional Jobs See the World Very Differently
than Independent Workers
20
Always wanted to be own boss
Don’t like answering to boss
Flexibility is more important than making the most money
Doing something I like is more important than making the most
money
Traditional jobs are more secure than independent work
I would rather have a permanent job than work on my own
38%
46%
56%
70%
58%
66%
72%
77%
53%
19%
TraditionalJob Holder IndependentWorker
44% 75%
Comparing Work Satisfaction Between Full-Time Independent
Workers and Traditional Job Holders
21
(ASKED OF RESPONDENTS WHO SCORED 6 OR HIGHER ON SATISFACTION)
WorkAttributes Satisfaction with Pay/ Income
Independent
Worker
TraditionalJob
Holder
I have control over where
and how I work
I have interesting work
My clients or employer appreciates
the quality of my work
Provides benefits
I get paid well
I have regular income
79% 24%
57% 37%
60% 39%
N/A 55%
38% 48%
32% 74%
Independent
Worker
TraditionalJob
Holder
Very satisfied or satisfied
Neither satisfied or dissatisfied
Very dissatisfied or dissatisfied
69% 66%
16% 16%
15% 18%
About MBO Partners
22
MBO Partners delivers solutions that make it safer and easier for
enterprise organizations and top independent professionals to work
together. Through its proprietary platform, MBO has built a
comprehensive workforce ecosystem that fuels both sides of the
independent economy. MBO strengthens relationships, minimizes
risk, and maximizes value for its clients. 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.
To learn more, visit www.mbopartners.com.
Contact mrobbins@mbopartners.com
Questions?

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MBO Partners State of Independence 2019

  • 1. The State of Independence in America 2019 REPORT The Changing Nature of the American Workforce
  • 2. About the Study The 2019 MBO Partners State of Independence in America is the 9th consecutive year this study has been conducted. Since 2011, independent workers have completed over 21,000 in- depth surveys and over 1,400 independent workers have been interviewed in-person as part of this study series. For the 2019 study, Emergent Research and Rockbridge Associates conducted an online survey in March of 2018. This survey had responses from 3,584 residents of the U.S. (aged 21 and older); the results were used to size the independent workforce and profile motivations among independent and traditional workers (margin of error: +/-1.7 percent). The data was weighted to reflect the demographics of the U.S. The 2019 results are generally statistically consistent with the survey results from the prior 8 years. View the report online: www.mbopartners.com/state-of- independence
  • 3. Key Findings 3  Full-Time Independents: A Solid Core Amidst a Very Strong Job Market  The Rise of Occasional Part-Time Independents  Youth Will Be Served: The Rise of the Millennials  Working in a Networked World: Technology, Platforms, and Globalization  The Financial Well-Being of Independents
  • 4. Independence Remains a Viable Career Path for Many 4  Full-Time Independents declined by 3.1% to 15.3 million.  Strong traditional job market pulling people back to traditional employment, especially reluctant independents  Part-Time Independents (less than 15 hours per week) declined by 2.7% to 10.8 million from 11.1 million in 2018.  Number of occasional independent workers increased by 6.3% to 15 million, up from 14.1 million in 2018  Economic factors driving need for supplemental income  Side gigs have become more popular  Digital platforms make it easier to pick up work TOTAL INDEPENDENCE REMAINS FLAT, EVEN AGAINST THE STRONGEST JOBS MARKET IN RECENT HISTORY 2014 2016 20182013 2015 2017 2019 FULL-TIME INDEPENDENT WORKERSINTHE U.S. 20122011 16 Million 16.9 Million 17.7 Million 17.8 Million 17.8 Million 16.9 Million 16.2 Million 15.8 Million 15.3 Million
  • 5. The Number of Occasional Independents Continues to Grow Rapidly 5 10.5 12.9 14.1 15 2016 2017 2018 2019 NumberofOccasionalIndependentsin theUnitedStates (in millions) “For a large chunk of the American population, part- time or occasional independentwork has become crucial tomaking ends meet andshore upshaky finances. Themarket issupplying a solution, in the form of platforms and marketplaces that enableoccasional work or sidegigs.” - MBO Partners State of Independence
  • 7. Full-Time Independent Workers Declines Slightly as Baby Boomers Age out of the Workforce 7
  • 8. Independent Satisfaction is the Highest it has Ever Been 8 13% RESPONDED 7, SO ROUGHLY 9 OUT OF 10 ARE SATISFIED OR HIGHLY SATISFIED 4% 3% 3% 3% 2% 2% 2% 2% 1% 38% 27% 33% 34% 34% 33% 24% 26% 23% 58% 70% 64% 63% 63% 65% 74% 72% 76% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Very Dissatisfied (1-3) Neutral (4-7) Very Satisfied (8-10)
  • 9. Full-Time Independents Choose to Work this Way 9 55% 57% 56% 53% 58% 59% 65% 63% 67% 15% 13% 14% 13% 9% 10% 9% 8% 7% 30% 30% 30% 34% 32% 30% 26% 26% 26% 2011 2012 2013 2014 2015 2016 2017 2018 2019 My choice completely A result of factors beyond my control A combination of both EmploymentChoice
  • 10. People Plan to Continue Working as Independents 10 PERCENTAGE OF RELUCTANT INDEPENDENTS AT LOWEST LEVEL IN 8 YEARS Continue working as an independent worker Build a larger business Seek a permanent, full-time job Seek a permanent, part-time job Retire Stop working altogether 11% 18% 2% 3% 1% 16% 15% 2% 5% 2% 2011 2015 63% 15% 13% 2% 4% 1% 2016 61% 14% 10% 4% 6% 1% 64% 11% 3% 6% 3% 2017 2018 70% 12% 7% 1% 7% 2% 2019 12% 63% 58%
  • 11. How Independents Find Work: 11 WORD OF MOUTH DOMINATES, BUT SOCIAL MEDIA & ONLINE TALENT MARKETPLACES ARE GROWING RAPIDLY Top Methods of Finding Assignments WordofMouth SocialMedia& OnlineTalent Marketplaces OnlineCommerce Marketplaces(eBay,Etsy, Airbnb) Agency/Broker FormerEmployer Top Way Top 3 Ways 46% 64% 17% 30% 9% 15% 8% 15% 6% 17%
  • 12. Usage of Online Talent Marketplaces Continues to Expand 12  Online talent marketplaces increasingly becoming just another sales channel for many independent workers  Based on interviews and other research, the main uses of online marketplaces are to:  Fill in gaps in schedules  Find new clients, especially for those who are new or starting up  Learn new skills  Explore new markets  There is a lot of testing and experimentation with marketplaces going on MANY INDEPENDENTS SUPPLEMENT TRADITIONAL CHANNELS FOR FINDING WORK WITH ONLINE MARKETPLACE USE Used an online talent platform to find work over the past 12 months Plan to use an online talent platform to find work over the next 12 months 4% 8% 2012 2013 14% 16% 2014 15% 18% 15% 2015 2016 20% 25% 2017 18% 3% 5% 22% 2018 24% 29% 2019 24%
  • 13. Millennials are Most Likely to Find Work Via an Online Talent Marketplace 13 Boomers Gen X Millennials 13% 15% 38% Use of talent marketplaces by age cohort
  • 14. Economic Contribution 14 Over the past year, independent workers generated roughly $1.28 trillion of revenue for the U.S. economy, equal to about 6.2 percent of U.S. GDP (2018), or the entire economic output of Spain.
  • 15. Independents Contribute Significantly to the Global Economy 15 =INDEPENDENTSWHO PROVIDEGOODS/ SERVICES TOCUSTOMERSOUTSIDEOF THE U.S.
  • 16. Remote and Dispersed Work is on the Rise for All 16 47% of traditional, full time employees report working remotely at least some of the time.  19% work remotely half of the time  12% work remotely full time 83% of full time independent workers report working remotely at least some of the time.  51% work remotely more than half of the time  37% work remotely full time
  • 17. Meet the Digital Nomad 17 A DEMOGRAPHIC PROFILE Many keep costs down by combining low-cost living with earning income at the wage rates of higher cost locations. Geoarbitrage report earning $75,000 or more per year 790,000 are part-timers and many work only part of the year. As a result, their income from varies widely. 46% are female and over half (54%) are older than 38 years old 31%
  • 18. By the Numbers 18 4.1 million independent workers identify as digital nomads* 16.1 million Americans say they will become digital nomads over the next 2-3 years 41 million Americans say they may become digital nomads over the next 2-3 years 3.2 million traditional workers identify as digital nomads*
  • 19. Income Scales with Age: Boomers are the Big Earners 19 $52,200 $71,500 $84,000 Full-Time Independent Workers Average Earnings by Age Cohort Millennials Gen X Boomers
  • 20. Those with Traditional Jobs See the World Very Differently than Independent Workers 20 Always wanted to be own boss Don’t like answering to boss Flexibility is more important than making the most money Doing something I like is more important than making the most money Traditional jobs are more secure than independent work I would rather have a permanent job than work on my own 38% 46% 56% 70% 58% 66% 72% 77% 53% 19% TraditionalJob Holder IndependentWorker 44% 75%
  • 21. Comparing Work Satisfaction Between Full-Time Independent Workers and Traditional Job Holders 21 (ASKED OF RESPONDENTS WHO SCORED 6 OR HIGHER ON SATISFACTION) WorkAttributes Satisfaction with Pay/ Income Independent Worker TraditionalJob Holder I have control over where and how I work I have interesting work My clients or employer appreciates the quality of my work Provides benefits I get paid well I have regular income 79% 24% 57% 37% 60% 39% N/A 55% 38% 48% 32% 74% Independent Worker TraditionalJob Holder Very satisfied or satisfied Neither satisfied or dissatisfied Very dissatisfied or dissatisfied 69% 66% 16% 16% 15% 18%
  • 22. About MBO Partners 22 MBO Partners delivers solutions that make it safer and easier for enterprise organizations and top independent professionals to work together. Through its proprietary platform, MBO has built a comprehensive workforce ecosystem that fuels both sides of the independent economy. MBO strengthens relationships, minimizes risk, and maximizes value for its clients. 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. To learn more, visit www.mbopartners.com.