After falling by 7% in 2020 due to the pandemic, the number of independent workers (freelancers, independent contractors, gig workers, etc.) rose to 51.1 million in 2021, an unprecedented 34% increase.
This is the key finding from MBO Partners 2021 State of Independence research study. This is the 11th year this study has been conducted.
As the study chart below shows (click to enlarge), the number of full-time independent workers increased by 25%. By labor market standards, this is a huge increase.
But there was even a bigger surge in those working as independents part-time, but occasionally (regularly, but without set hours per week) as independents. Their ranks grew from 15.8 million in 2020 to 23.9 million in 2021, a 51% increase.
Most occasional independents work this way to supplement their income or pursue a passion or a hobby.
For example, many rideshare and delivery drivers are occasionals. They fit in their driving work hours when they can, usually around other obligations (caregiving, school, a traditional job, etc.).
Another example is a craftsperson who sells their work on Etsy as a side gig. When their schedule permits or demand for their product is high, they may work 10 or 20 hours, or even more in a single week. But other weeks, they may not work at all or spend very little time on their side gig.
There is a mix of reasons for the surge in independent workers:
- The pandemic has many people rethinking what work means to them and reevaluating how they want to live and the type of work they want to do. This has more people turning to independent work for the autonomy, control, and flexibility it provides.
- Many lost their jobs or had their work hours cut due to the pandemic. This accelerated the existing trend towards people needing to take on 2nd and even 3rd jobs to supplement their income.
- Online platforms, marketplaces, and social media have made it cheaper and easier to become an independent worker. The burgeoning creator economy is an example.
- The pandemic has reinforced a growing view that traditional jobs are riskier and less secure than they once were. This makes going independent more attractive.
See MBO Partners' research brief for more details.
Emergent Research worked with MBO Partners on this study.