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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