Independent work: choice, necessity, and the gig economy



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Independent-Work-Choice-necessity-and-the-gig-economy-Full-report

Operational  workers
Workers who carry out ongoing operations and long-term 
projects and strategies

Media specialists
More amenable to 
independent work
Less amenable to 
independent work
SIMILAR in apx


81
McKinsey Global Institute
Independent work: Choice, necessity, and the gig economy
Given the large numbers of people employed in the occupational categories that do lend 
themselves to independent work, there would appear to be sufficient room for companies 
and organizations to engage a larger independent workforce. 
***
A number of demographic, economic, and business trends are intersecting to increase 
the likelihood of a growing independent workforce in the future. This shift could bring clear 
benefits to individuals, companies, and the broader economy—but it also poses a number 
of challenges and policy questions. Chapter 4 looks at the potential macroeconomic 
benefits as well as the issues that would have to be addressed in order to make this shift a 
positive development. 


82
McKinsey Global Institute
 
© Tim Hall /Getty Images


Many people are closely watching the development of the independent workforce, seeking 
to understand new ways of working that fall outside the traditional employer-employee 
relationship. Our research finds that more people in both the United States and the EU-15 
are engaged in this type of work than previously thought—and their ranks could continue 
to grow. The proliferation of digital tools and the rise of labor matching platforms are rapidly 
expanding the range of services that can be delivered independently, creating new options 
for individuals to find work that suits them, on their own terms. 
Increasingly, policy makers and observers who closely watch only the ups and downs of 
payroll employment figures are missing a large part of what is happening in the labor market. 
The continued growth of independent work could have tangible economic benefits such as 
raising labor force participation, providing opportunities for the unemployed, and potentially 
even boosting productivity. Digital platforms can amplify these benefits through their larger 
scale, faster matches, seamless coordination, and richer information signals enabling trust. 
But some key challenges will need to be addressed for this to be a feasible and satisfying 
development for workers. The extent to which growth in independent work is a welcome 
development or a cause for concern depends heavily on whether workers are following this 
path by choice. In general, the debate has been based on anecdote, rather than on hard 
data, and more research clearly needs to be done on many fronts. But even for the free 
agents who are pursuing their preferred working style and are highly satisfied with their work 
lives, independent work is not always seamless. 
Existing policy frameworks and safety net programs, designed for a more industrial age 
and a labor market in which salaried positions are the norm, do not always fit non-traditional 
working models. While policy makers and intermediaries have taken steps to address 
the challenges, there is still room for improvement. Today free agents navigate around 
these issues as best they can, but it may be time to modernize policies and create new 
intermediaries that can bridge these gaps. And while the majority of independent workers 
are satisfied and thriving, it is important not to lose sight of the 50 million US and European 
workers who want stable jobs with adequate pay but feel shut out of them. Ensuring that 
the low-wage workers who turn to independent work only out of necessity—as well as 
traditional workers in precarious situations—do not slip through cracks in the safety net is a 
critical issue. 
In this chapter, we offer early thoughts on the benefits that independent work could generate 
for various stakeholders, including companies and organizations, individual consumers, and 
workers themselves. We also identify some of the policy issues that need to be explored and 
addressed. In addition to action on the policy front, there is tremendous room for innovators 
to step into this space with fresh solutions. The growth of independent work will present 
companies with organizational and strategic questions, while the individuals who choose 
this path will have to chart their own way through a very different world of work. 

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