Self-Employed Using Fewer Employees

September's Labor Review Monthly  from the BLS has an excellent article on U.S. self-employment. 

One of the most interesting charts is shown below.  It shows that the percentage of unicorporated self-employed that have paid employees has fallen consistently over the last decade. 

 
 
It comes as no surprise that the self-employed are using fewer paid employees.  Companies of all sizes are increasing their use of contingent workers - contractors, part-timers, freelancers, etc. - to improve workforce flexibility and save money.  They are also automating tasks that used to require employees. 

The shift towards contingent workers will have far reaching impacts - both positive and negative - on business and society over the next decade.  This will also be a contintious issue, with government, big labor and many newly contingent workers opposing this shift. 

The growth of contingent workers will:

• Provide more part-time and freelance job opportunities for older workers not ready for traditional retirement
• Shift where and how we work, with the home and 3rd places like coworking facilities becoming more important work places.
• Reduce employment security.
• Shift health care, retirement planning and other risks to the individual.
• Lower the costs of starting and operating a small business.
• Increase small business flexibility and agility, making it easier to serve niche markets.
• Change the social contract between businesses and employees - both full time and contingent.

These trends are covered in more detail the Intuit 2020 Report.

Click here or refer to the article for information on unincorporated versus incorporated self-employment.

Comments

[Shane_petty]

Steve,

I really enjoy the trend highlighting that Small Business Labs provides. Your insights and ability to capture the small business "vibe" is great and helps me out tremendously with my small businesses as well as my thinking forward.

Shane

[solar motion light]

It shows that the percentage of unincorporated self-employed that have paid employees has fallen consistently over the last decade.

The information is really a not pleasing news to know. The said data was must be improve in order upgrade its status. Looking forward for more about this.

[baby rocking horse]

This is really a true scenario. This even helps a lot of people because of the crisis we are facing. many tend to be self-employed. Having business at the comfort of your homes is a good this for this only requires less number of employees. This will enables you to earn much. Thanks a lot for the very useful insights.

[KerryFrancis]

Being self employed is not that hard as long as you have a good mechanism. Having a business at home will allow you to have fewer employees with the ability of many persons. This is a good deal for you can earn much less than what you think of. Maybe, this is the new trend nowadays. Thanks for the info.

[Fibonacci levels CFDs]

This is a great opportunity for most people who are self employed to have a fewer employees yet earning much. Thanks a lot for sharing your thoughts about this one. This is indeed a great help. Keep up the good work.