The U.S. labor market is undergoing a quiet transformation. As traditional 9-to-5 roles evolve and remote-first work culture takes hold, more Americans are stepping away from salaried employment and embracing self-employment. At the heart of this shift is the rise of independent contractors, commonly known as 1099 workers.

This growing segment of the workforce plays a vital role across industries, offering businesses flexibility and specialization while allowing workers to enjoy autonomy, flexibility, and often, greater job satisfaction.

Key Fast Facts About Independent Contractors

  • Self-employed contractors make up 7.4% of the total U.S. workforce (11.9 million workers).
  • 70.7% of independent contractors work full-time.
  • Most common occupations for independent contractors:
    • Arts/design/media: 28.1%
    • Personal care/service: 19.7%
    • Construction/extraction: 15.1%
    • Building/grounds maintenance: 13.2%
  • 91.7% of independent contractors prefer contract work over traditional jobs.

How Many Americans Are Independent Contractors?

As of 2023, approximately 11.9 million Americans are working as independent contractors, accounting for about 7.4% of the total U.S. workforce. If we include all self-employed individuals (such as sole proprietors or gig economy workers), the number grows to 16.5 million, or 10.4% of the workforce.

This steady growth in independent work is reshaping Americans’ perspectives on employment, career progression, and even retirement planning.

Who Are These Workers? A Demographic and Industry Breakdown

Independent contractors span every age group, education level, and background, but specific industries are primarily reliant on 1099 labor.

  • Arts, Design, and Media (28.1%)

These roles often demand highly specialized, creative skill sets, think graphic designers, video editors, and freelance writers, making full-time employment less common. For businesses, hiring on a project-by-project basis makes more sense.

  • Personal Care and Service (19.7%)

From personal trainers to hairstylists, housekeepers, and massage therapists, many in this sector choose independence for the flexibility to set their own hours and rates, and often, to build their own clientele.

  • Construction and Extraction (15.1%)

A complex area: while many tradespeople operate independently, both federal and state regulations require firms to classify many temporary construction workers as W-2 employees. However, project-based contract roles do still exist and are popular.

  • Building and Grounds Maintenance (13.2%)

Landscapers, cleaners, and maintenance contractors benefit from setting their own schedules and working across multiple clients or sites.

This breakdown highlights how independence aligns with fields where flexibility, specialization, or project-based work is common.

Full-Time vs Part-Time: How Independent Contractors Work

A common assumption is that independent contractors work ‘on the side,’ but the data tells a different story. 70.7% of 1099 workers are full-time, showing that this is often more than just a side hustle.

This is especially true in niche or highly specialised fields, such as software development, consulting, or the creative industries. In these roles, full-time independents often command higher rates, and thanks to remote work trends post-COVID, finding clients across the country (or globe) has never been easier.

Part-time work still plays a role, especially in caregiving, education, and delivery services, but the full-time independent contractor is becoming the new norm.

How Much Do 1099 Workers Earn?

Despite their autonomy and flexibility, independent contractors typically earn less than traditional employees, at least on paper.

Median Weekly Earnings (July 2023):

  • Independent Contractors: $949
  • Traditional Employees: $1,132
  • Temp Agency Workers: $818

While contractors may appear to earn less, it’s worth noting that they often have multiple income streams, tax deductions for business expenses, and greater control over their earning potential. Higher earners, such as IT consultants, legal professionals, and creatives, can surpass traditional incomes, especially once they establish a solid client base.

Are Independent Contractors Happy With Their Work?

Surprisingly (or perhaps not), independent contractors report high levels of satisfaction, even when earnings are sometimes lower.

  • 80.3% say they are satisfied with their current work model.
  • Only 8.3% say they would prefer a traditional job.
  • A massive 91.7% say they prefer independence.

According to studies by MBO Partners and McKinsey, independent workers often enjoy better mental health, lower stress levels, and a stronger sense of autonomy. Many cite the ability to choose projects, set schedules, and work remotely as key contributors to their overall happiness.

In short, money isn’t the only motivator. Flexibility and autonomy are now central to what Americans value in work.

What Does This Mean for the Future of Work?

The rise of independent contracting isn’t just a trend; it’s a major shift in how businesses and workers operate.

For employers, this brings both opportunities and challenges:

  • Pros:
  • Increased flexibility in assembling teams
  • Access to specialized skills without long-term costs
  • Easier to scale up or down based on project needs
  • Cons:
  • Classification risks (misclassifying W-2 workers as 1099s can lead to audits or fines)
  • Contractor motivation may differ from that of full-time employees
  • Difficulty building long-term institutional knowledge

Infrastructure is evolving rapidly to support independent work, from digital job platforms and invoicing tools to co-working spaces and contractor-friendly benefits services. But legislation is still catching up. Expect more scrutiny and potential regulation, particularly around gig platforms and benefits for freelancers.

As businesses increasingly adopt hybrid models, having a reliable network of contractors is becoming essential to staying agile and competitive.

Conclusion: The Independent Worker’s Role in Today’s Economy

Independent contractors now represent a permanent, growing segment of the U.S. labor force. They provide businesses with flexibility, help fill skill gaps, and bring specialized expertise. Workers, in turn, enjoy greater freedom, job satisfaction, and control over their careers.

But this shift also demands ongoing attention:

  • Will legislation catch up to protect independent workers without limiting flexibility?
  • How will benefits like health insurance and retirement adapt to a more fluid workforce?
  • Will traditional employment continue to shrink, or will a new hybrid model emerge?

For now, the data tells a clear story: despite some earnings gaps, the 1099 workforce is here to stay, and it’s reshaping how America works.