The Bayoindependent workforce — including the gig economy — is larger than anyone has previously estimated, according to a new report.
Up to 162 million people are working independently throughout the United States and European Union, the McKinsey Global Institute determined in its report Independent Work: Choice, Necessity and the Gig Economy.
McKinsey analyzed existing government and private sector data and surveyed workers in the U.S., UK, France, Germany, Spain and Sweden to reach that conclusion. The 162 million number is extrapolated from the finding that independent workers make up between 20 and 30 percent of the working-age population in the U.S. and EU.
A recent survey from the Freelancers' Union, by comparison, estimated that 55 million Americans worked as freelancers in 2016.
"This is a bigger phenomenon than we thought, and it's growing," McKinsey partner Susan Lund, who co-authored the report, told Mashable. "We're able to get at the motivations. Do people want to be doing this? Are they satisfied?"
The McKinsey study included workers who supplement their income with independent work, rather than just workers who depend on independent models for their full-time employment.
Of those independent workers, however, only a small percentage are members of the oft-maligned gig economy — providing labor on a contract basis through a service like Uber, Postmates or TaskRabbit.
Only 15 percent of the projected 162 million independent workers have ever used a digital platform for their work. Within that 15 percent, only 6 percent provide labor.
Instead, the "independent workforce" includes people would likely identify as self-employed.
SEE ALSO: Etsy proposes 3 ways to improve the gig economy in new reportMcKinsey characterized independent work as work that is flexible, is paid by the task or assignment and has a short-term relationship between the worker and the customer. A tax accountant fits that description just as well as an Uber driver.
Of the 15 percent who use a digital platform for their work, many are selling items on eBay or Etsy or renting rooms on Airbnb rather than driving an Uber or delivering food.
Notably, 70 percent of workers said they were choosing to pick up independent work, whether for their primary or supplemental income. The other 30 percent were doing so out of necessity.
SEE ALSO: Labor Department guarantees sick leave to federal contractorsThose who chose to pick up independent work, unsurprisingly, reported higher levels of satisfaction with their work.
The 148-page McKinsey report also ties independent models of work to history. Most workers were independent at the turn of the twentieth century, until the Industrial Revolution tied workers to one employer and a 9-5 model, Lund said.
"The 9-5 job is becoming more of a myth than the reality of how people make their living," Lund said. "It's time for everyone to reset how they think about work."
Topics Uber
Volvo wants you to never miss a meeting again. Thanks so much, reallyBitcoin may be the biggest winner of 2017 so farMathematical study shows exactly how rideThe Motiv smart ring is a fitness tracking wearable for your fingerAnother organ has been hiding in your belly all along'Sherlock' faces the hardest case of his career in twisty Season 4 premiereMathematical study shows exactly how rideTesco shaves price of women's razors so they no longer cost more than men'sSeeing the start of 2017 through Spectacles is so 2017Mariah Carey rep claims she was 'set up to fail' at New Year's Eve performance'Dangal' on its way to breach the Rs 5 billion mark in box office collectionsE Ink unveils world's largest ePaper display at CESWhat kind of Snapchatter are you?Here's your first peek at Lenovo's lowVillage intervenes after couple refuses to stop at 17 childrenHow the NAACP protests in the digital age'SNL Korea' does a perfectly bizarre 'Dr. Strange' parody you need to seeDonald Trump is selling the news over Twitter—and everyone's buyingBillie Lourd posts touching Instagram tribute to Carrie Fisher and Debbie ReynoldsOlder smartphones get locked out of WhatsApp Arsenal vs. Monaco 2024 livestream: Watch Champions League for free 'Split Fiction' hands Charlotte Hornets vs. Chicago Bulls 2024 livestream: Watch NBA online Best earbud deal: Get a pair of Samsung Galaxy Buds3 Pro with a $20 Amazon gift card AncestryDNA kit deal: Get $80 off at Amazon Best Etsy deal: Take $5 off any purchase of $30 or more with code LASTCHANCE24 How to thank your Amazon driver for free Rams vs. 49ers 2024 livestream: How to watch NFL for free Shop Target's holiday countdown sale through Dec. 14 What's new to streaming this week? (Dec. 13, 2024) Best travel deal: Get 25% off base fares at JetBlue ACLU calls on police departments to halt the rise of generative AI Review: Amazon Echo Show 5 vs. Show 8 — which is better? Spacecraft makes daring approach of metal object in Earth's orbit Phoenix Suns vs. Utah Jazz 2024 livestream: Watch NBA online Amazon is selling cars now Best Apple Watch Ultra 2 deal: Save $80 at Best Buy Best gaming laptop deals: Alienware m16 R2, Acer Nitro V 15, and more Salt Typhoon hack: Phone companies haven't informed affected customers, report says YouTube Kids app now actually looks like YouTube