t’s been a big month for the freelance economy. Last week, MBO Partners released their State of Independence in America Report for 2024, a 14 year running study that’s been the backbone of charting the rise in the independent workforce.

The report shows clear proof that the independent workforce isn’t a fad, but a seismic shift in how individuals choose to work.

We were fortunate to have Miles Everson, CEO of MBO Partners on the podcast last week to help us uncover the most important aspects of the report. Below is our summary. Enjoy 🙂

Miles is releasing Free Birds Revolution, The Future of Work and The Independent Mind in less than 100 days, preorder HERE.

Full Time Independents Are Here To Stay And Growing Faster Than The Total Labor Force

The data proves that the rise in independents is more than hype. Amidst an uncertain economy, a reduction in the “great resignation”, and a push back to the office, individuals are choosing a full time independent career path.

As the two charts below show, while occasional and part time independents have dipped, full time independents have doubled from 13.6m in 2020 to 27.7m today.

Even more impressive, at a time when baby boomers are exiting the workforce and experts agree that developed nations are in a talent shortage, the overall compound annual growth rate for the independent workforce is 5.5% higher than overall employment (excluding farm employment).

Independents Are Happier, Healthier, And Wealthier

Why is independent growth persisting while other future of work aspects like remote work experience strong pushback?

Individuals overwhelmingly choose self employment for three reasons.

1. Independents are happier, as 84% say they are happier working independently
2. Independents are healthier, as 79% say it’s better for their health to work for themself
3. Independents are wealthier, as 65% say they feel more secure working independently, and the number of independents making over $100,000 grew 2% to 4.7 million in 2024.

Independents Are Global

While the United States leads, the growth of the independent workforce is a global phenomenon. The World Bank estimates that there are over 400 million freelancers globally.

According to the report, 31% of independents said they provided goods and services to customers outside the U.S, compared to only 12% in 2012.

This is consistent across Human Cloud data, specifically Human Cloud’s global maturity and growth index below.

It’s Getting Easier For Independents

Working for yourself isn’t for the faint of heart. According to the most recent data, 90% of startups fail. While independent business failure isn’t as high, various external factors like benefits, healthcare, and vacation are only a few that make working for yourself difficult on someone’s lifestyle even if their independent business is doing well.

However, the report shows that this is changing, as the percentage of independents that stated the below top challenges has consistently decreased since 2012.

Independents Are Embracing AI

While the business case of AI is largely undetermined, independents are early adopters. They’re both using, and proving success of Generative AI in their workflow.

Today, 65% of Independents are using Gen AI in their work, up from 37% in 2023. They’re also learning how to be effective with Gen AI as 95% of independents say it makes them more competitive.

What Does This Mean For Companies? Embrace Or Be Left Behind

The implications are obvious, companies need to embrace the independent workforce. But what do companies need to do, and how can they get started?

According to Miles, “Enterprises must be programmatically looking at their total workforce strategy in a way that is encompassing and favorable to including Independents by Choice as part of that strategy. You cannot have a successful workforce strategy or meet the needs of a growth company without this critical source of talent.”

We couldn’t agree more.

If you want to learn more, or listen to Miles on the Human Cloud Podcast, check out below:

• Miles Everson Podcast Episode
• State of Independence in America Report for 2024

ABOUT HUMAN CLOUD

Human Cloud is the global advisory firm on the freelance economy. Fueled with over a decade of experience scaling digital first models across various environments, Human Cloud bridges the gap between technology promise and commercial realization for digital first work models that will become the global default by 2030.

Human Cloud helps three major segments of the global economy. First, Human Cloud helps large, Fortune 500 enterprises integrate digital first work models within their talent strategy so they can scale digital first workforces. Second, Human Cloud helps industry solutions like talent platforms, talent providers, and talent applications adapt to enterprise needs, connect with industry peers, and access market intelligence so they can grow sustainable businesses. Third, Human Cloud helps governments and investment firms make strategic decisions into how their portfolios and initiatives should embrace freelance solutions.

Along with a proprietary knowledge graph that enables prescriptive intelligence on the freelance economy, Human Cloud has the #1 global podcast on the freelance economy, contributes to major media publications like Forbes and Entrepreneur, and published The Human Cloud with HarperCollins.