Why the Employment Landscape is Shifting

The Evolution and Expansion of the Independent Worker

Advancements in digital technology have split open the market for nontraditional work both in scope and geography. Craftspeople aren't waiting for the annual art festival downtown to sell their creations, they're on Etsy or using Shopify to ship off custom requests year-round; software engineers, content writers, and information technologists are completing projects from one mile away or 5,000 miles away.

With nearly one third of US workers now holding an “alternative job” as their primary job, these gigs are occurring less on-the-side and more front-and-center. Given the scarcity of available talent, the high rate of job quits, and the pursuit of freedom and flexibility among many workers, companies that choose to look away do so at the risk of obsoletion.

Savvy organizations are relying on contingent or independent workforces to find specialized skillsets on-demand and without the added expense of making them full-time employees. Independent workers, or Apt Professionals in the case of engineering and sciences, ensure that companies continue to grow, innovate, and expand with agility and flexibility, particularly in a tough economy.

A Brief History of the Gig Economy

The initial spike of gig workers occurred in the aftermath of the 2008 economic crisis and amid rapid advancements in digital technologies. Suddenly unemployed—or underemployed—workers replaced or supplemented income by taking on flexible work found through online platforms. But as the economy recovered, this “new dimension of work” didn’t go away, it strengthened.

In 2020, during the global pandemic, the opportunities (and necessity) for workers to pick up gigs or side hustles expanded with online platforms as stores shutdown and delivery services picked up. Many rose to the call and kept services running that would otherwise have shuttered.

Certain skillsets were instrumental in the efforts of companies scrambling to digitally transform, practically overnight. Almost every company became a tech company in need of workers with skills to build, deliver, or promote contactless, touchless, curbside, and/or virtual service.

At the same time, those clocking in and out of more traditional career trajectories began taking stock of their lives: how they spent time, how they desired to spend it, the impact they were making, what they wanted out of life.

Many let themselves wonder about a different way—a more flexible way, perhaps a more efficient way.

And judging by the numbers, a lot of those workers didn’t just wonder, they pursued.

The growth of full-time independent workers:

2012:    11.2 million workers

2019:    12.4 million workers

2020:    13.6 million workers

2021:    17 million workers

Between 2012 and 2021, growth among workers pursuing full-time work in the gig economy increased by 51.8 percent, with the largest gain occurring between 2019 and 2021. Many workers who lost their job in the early days of the pandemic went to work for themselves; others migrated toward it later, during The Great Realization.

The Employment Landscape is Shifting for Everyone

Since the pandemic recovery, more than 4 million workers have quit their jobs each month in search of better pay, increased flexibility, and meaning in their work.

Companies have shown their willingness to adapt to these shifts, placing greater emphasis on employee engagement, improving corporate culture, and with nearly 58 percent of companies offering some form of remote or telework arrangements to employees who desire increased flexibility, and a greater emphasis on improving corporate culture.

Currently, the labor market is experiencing a dramatic shortage of skilled workers in engineering and sciences. In fact, unemployment rates in those categories consistently fall below the overall unemployment rate. Even as the Fed attempts to loosen the tight labor market by increasing interest rates, and thereby increasing unemployment (either through layoffs or higher labor force participation rates) the labor market remains stubbornly strong.

And there doesn’t appear to be an end in sight, particularly as economists predict 10,000 baby boomers will turn 65 every day for the next twenty years.

All this to say, demand will only increase and workers with skills in engineering and sciences will continue to be well-positioned to seek out employment that provides both flexibility and variety. And, if they’re unable to find it with their current employer, they’ll find it with another. Job quits remained above 4M for the 18th consecutive month in December 2022. Another possibility: even more workers might strike out on their own.

Furthermore, work and jobs are changing fast. Certain skills are becoming rapidly out of date, while other, new skills are emerging.  Companies looking to find new ways to get important work done are navigating these supply/demand, emerging/obsolete challenges in different ways, for example:

1. Some are getting creative with how they think about work. Rather than hiring for a "job" they're hiring for skills and abilities and matching skills to projects, rather than positions. This approach also allows employers to easily identify skill gaps. Rather than look for new workers to fill those gaps, are finding ways to upskill and retrain the workers they already have.
2. There is no end in sight to the current labor shortage, which is expected to be compounded by the anticipated decline in college enrollment. Therefore, several companies are creating their own solutions to upskill existing workers and engage and recruit future ones.

The Apt Professional and Actalent

Additionally, companies are increasingly relying on partnerships with specialized talent solutions and services companies, such as Actalent, which coined the Apt Professional term due to its offer of flexible work arrangements, match of skills and interests to opportunities, competitive salaries and benefits, and exceptional care and career development to its consultants. In exchange, those Apt Professionals keep companies relevant in a rapidly changing world.

Actalent provides its consultants the benefits of the “gig economy” without any of the risk.