February 2019
Over the last year or so, the US employment market was characterised by considerable changes1, including: gender pay gap reporting; an increase in sexual harassment cases in the light of the #MeToo social media campaign; an expansion to workers’ rights (i.e. with regards to paid and protected leave); new class action risks (e.g. biometric data); protectionist immigration changes; and a broadening of the definition of “employer” to cover independent contractor status.
The US has seen a concerted move away from exclusively permanent long-term employment. Initially this came about to avoid lay-offs due to business cycles. However, in the US, as in Europe, many of these employment arrangements – the kind of short-term engagements known as “gig” – continued to be driven by technological advances (enablers) and for many individuals are seen as preferable due to the flexibility they afford.
Crown World Mobility predicts in its 2018 Global Mobility Trends whitepaper that by 2020, 40% of American workers will be independent contractors. The paper suggests that this could also become a new way to define a full-time mobile employee assigned to gigs or short-term projects.
Overall trends
- More than one third (36%) of US workers are in the gig economy. This equates to around 57 million people, according to statistics from a Gallup poll published in Forbes. It was driven by the likes of Uber, Amazon, Ebay and many more.
- The biggest increase in globally mobile assignment volume over the next five years is expected from the US (59%), followed by China (39%) and the UK (33%)2
- Shorter duration assignments are expected to become the norm over the next five years, such as extended business trips (72%), short-term assignments (63%). At the same time, there’s an expected reduction (28%) in the use of traditional, full balance sheet, tax equalised long-term assignments2
- There are no exact figures on how many American citizens live and work abroad. In 2016 a State Department estimate suggested that the number may be around 9 million, according to a Wikipedia reference.
Expats from the US3
- Top reason for moving away: To retire (31%)
- 60% are aged 55+, 30% 35 – 54; 10% 18 - 34
- 49% are employed
- 22% have kids
- Top 3 destinations: 41% The Far East; 25% Europe; 21% East Asia / North America.
Expats in the US3
- Top 3 reasons for moving there: To progress my career (44%); Sent by an employer (32%); To challenge myself (29%)
- 55% are aged 35 – 54, 25% 55+, 20% 18 – 34
- 78% are employed
- 36% have kids
- Top 3 regions of origin: Europe (58%); North America (8%); Central & South America (8%)