Independent work: choice, necessity, and the gig economy

Economic and labor market context
Independent workforce: Government statistics
▪
Unemployment has steadily declined in Germany over the past decade.
▪
Both overall and youth unemployment rates are now lower than the corresponding rates in the EU-15.
▪
But 14 million want more work: 2 million unemployed, 1 million part-time involuntary workers, and 
11 million who are inactive.
GDP growth and median household income growth
Total and youth unemployment rate
% of labor force
20
0
0
-15
15
5
-5
-10
10
8
6
4
2
-4
-2
-6
14
13
11
10
09
08
2015
07
2005
12
06
GDP growth
% change, constant prices, 
2010 $
Median household 
income growth
%
0
10
20
4
16
22
8
6
18
24
2
12
14
11 12
07 08
06
09 10
13
2005
2015
14
EU total
EU youth
Germany youth
Germany total
GDP
$ trillion
3.05
3.30
3.50
70.1 million
working-age population
42.2 million
people in the labor force
14.0 million
people who want to work more
Key highlights
NOTE: Numbers may not sum due to rounding. 
SOURCE: Eurostat; OECD; McKinsey McKinsey Global Institute analysis

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McKinsey Global Institute
Independent work: Choice, necessity, and the gig economy
8M
14–
17M
Casual earners are the largest group of 
independent earners
% of independent earners
4.5
4.3
4.3
4.9
1
3
2
6
5
4
Traditional
Independents
Independents
Traditional
By choice (primary work only)
Out of necessity
By choice
Out of 
necessity
70%
30%
6 million
Free 
agents
29%
9 million
Casual 
earners
42%
2 million
Reluctants
11%
4 million
Financially 
strapped
19%
39%
61%
Primary
Scale from 1 (completely dissatisfied) 
to 6 (completely satisfied)