Is the 9-to-5 Dying? Mapping the States Where Americans are Quitting Jobs to Work for Themselves

Rank	Region Name	Value
1	Montana	15.7%
2	Vermont	15.7%
3	Maine	14.1%
4	South Dakota	13.8%
5	California	13.7%
6	North Dakota	13.7%
7	Idaho	13.7%
8	Utah	13.1%
9	Colorado	12.9%
10	Hawaii	12.8%
11	Alaska	12.7%
12	Wyoming	12.6%
13	Oregon	12.5%
14	New Mexico	12.4%
15	Arizona	12.3%
16	Nevada	12.2%
17	Florida	12.1%
18	Texas	12.0%
19	Washington	11.9%
20	New Hampshire	11.8%
21	Oklahoma	11.7%
22	Arkansas	11.6%
23	Iowa	11.5%
24	Nebraska	11.4%
25	Kansas	11.3%
26	Minnesota	11.2%
27	Missouri	11.1%
28	Tennessee	11.0%
29	Georgia	10.9%
30	Indiana	10.8%
31	Louisiana	10.7%
32	South Carolina	10.6%
33	North Carolina	10.5%
34	Virginia	10.4%
35	Massachusetts	10.3%
36	Connecticut	10.2%
37	Rhode Island	10.1%
38	New Jersey	10.0%
39	Maryland	9.9%
40	New York	9.8%
41	Michigan	9.7%
42	Wisconsin	9.6%
43	Mississippi	9.5%
44	Kentucky	9.0%
45	Pennsylvania	8.9%
46	Illinois	8.8%
47	District of Columbia	8.0%
48	Ohio	9.4%
49	Delaware	9.2%
50	Alabama	8.9%
51	West Virginia	6.5%

Self-employment rates vary widely across U.S. states. In some places, agriculture and tech-driven gig work encourage independence, while in others, old industrial traditions make self-employment less common.

The ranking spotlights top performers like Montana and Vermont, where over 15% of the workforce operates self-employed, contrasting sharply with laggards such as West Virginia at just 6.5%.

These differences reveal how rural areas often adapt more easily than cities, showing bigger changes in work independence as technology and populations shift.

Dominance of Top-Ranked Regions

Top-ranked regions stand out because their strong agricultural backgrounds and natural resources push people to work for themselves rather than follow traditional job paths.

States in the top 10, like Montana, Vermont, and South Dakota, use their large farms and tourism to keep self-employment rates above 13%.

Farmers and small business owners in these states run their own operations and can quickly adjust to market changes, unlike many city jobs.

California, ranked 5th at 13.7%, differs from rural states. Its tech and entertainment industries support many freelancers, such as software developers and content creators, who work on contract.

This cluster outperforms mid-ranked groups like those in positions 20 to 30, where values hover around 11%, because it combines scale with flexibility, drawing talent that amplifies entrepreneurial output.

Counterintuitive Rankings Explained

West Virginia is last with 6.5%, which is surprising for a rural state. Ongoing economic troubles from the decline of coal keep people in wage jobs and make self-employment rare, even though the state is similar to top performers like Montana.

Residents face capital shortages that prevent starting ventures, unlike in rank 12 Wyoming, where energy transitions enable independent consulting at 12.6%.

This anomaly underscores how historical extractive economies erode entrepreneurial bases, forcing reliance on shrinking corporate employers.

States ranked 48 to 51, such as Delaware and Alabama, also have self-employment rates below 9.5%. Old manufacturing jobs in these places draw people away from starting their own businesses.

Comparative Clusters and Trade-Offs

Rural states ranked 1 to 15, with self-employment above 12%, do better than industrial mid-Atlantic states ranked 35 to 45, where rates are below 10.3%. In rural areas, fewer people mean greater reliance on self-sufficiency in jobs like farming and tourism.

Western states like Idaho and Utah make it easier to start a business because they have fewer regulations. In contrast, eastern states like Pennsylvania and Illinois have strong unions that focus on steady wages instead of self-employment.

However, people in high-ranked states take on more financial risk by being self-employed, while those in lower-ranked states avoid these risks with regular jobs.

Top states give up benefits like health insurance for more independence, which means their earnings can change a lot during tough times. Mid-ranked southern states like Tennessee and Georgia avoid this by having a mix of job types.

Structural Constraints on Lower-Ranked Regions

Lower-ranked states struggle with big companies controlling the market and outdated infrastructure, making it harder for people to work for themselves.

The industrial Midwest states ranked 40 to 51, with self-employment below 9.8%, and depend on big manufacturers. These companies make it hard for small businesses to compete.

Ohio, ranked 48th with 9.4%, is a good example. Big car companies there hire most workers, so there are fewer chances for independent mechanics or suppliers.

The District of Columbia, ranked 47th at 8.0%, has a lot of red tape and expensive licenses, which discourage freelancers. In contrast, Utah, ranked 8th at 13.1%, makes it easier to start working independently.

These problems keep people dependent on big employers and make it harder for them to switch to gig work, which is more common in top-ranked states.

Future Implications

If current trends continue, top-ranked states could become even more innovative. Self-employed workers are leading the way in sustainable farming and digital services, helping these areas stay strong as automation grows.

States ranked 1 to 10 could grow more diverse economies and attract investments that help the whole country grow.

Lower-ranked states risk falling behind. If big companies leave, unemployment could rise because there are not enough self-employed workers to fill the gap, potentially increasing inequality in states ranked 40 to 51.

If these trends continue, we may see a split: rural states move ahead, while industrial states fall behind and need new policies to encourage entrepreneurship and change the workforce by 2030.

Based on:

• U.S. Bureau of Labor Statistics. (2024). The nonagricultural self-employment rate was at 5.7 percent in the fourth quarter of 2023. https://www.bls.gov/opub/ted/2024/nonagricultural-self-employment-rate-at-5-7-percent-in-fourth-quarter-2023.htm