MBO Partners released their 2019 State of Independence study this week.
This is the 9th year of this ongoing study, which provides an in-depth look at American's independent workers (freelancers, independent contractors, self-employed, etc.). Emergent Research works with MBO Partners on this study.
The study covers a lot of ground, but we think one of the key findings is how independent workers view the security associated with independent work.
As the study chart below shows (click to enlarge), in 2019 a bit over half (53%) of full-time independent workers reported they feel more secure as independents than they would if they had a traditional job.
This is up from just 32% saying they felt more secure in 2011.
When we ask in interviews why independents in this group feel more secure, we consistently hear 3 things:
1. Because they are in control of their work and business, they feel more secure than being at the mercy of a employer and a boss.
2. They feel having multiple clients and/or streams of income is more secure than relying on a single source of income.
3. Due to layoffs, company failures, changes in corporate directions and a broader lack of corporate loyalty to their employees, they feel traditional jobs aren't secure and by comparison independent work is more secure.
In addition to the reasons above, there are several more reasons the percentage who feel more secure as independents has increased.
The strong economy has made is easier to be a successful independent worker. Independent work is also more socially and culturally acceptable than it was a decade ago. This makes independent work look better in general.
Another factor is the strong job market has allowed independent workers who would prefer a traditional job (we call them "reluctant independents") get a traditional job.
This has led to a decline in the share of full=time reluctant independents from 34% in 2012 to just 19% in 2019.
Reluctants are much less likely to feel independent work is more secure. So the reduction in their share increases the share who feel independent work is more secure.
One of the biggest reasons people don't pursue independent work is they consider it too risky and insecure. For the reasons listed above, this is starting to change - especially since traditional jobs are increasingly viewed as insecure.
We'll have much more on the MBO Partners State of Independence study findings over the next couple of weeks.
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