New Geography's 1099 Economy on the Rise features data from Zen Payroll showing:
"the ratio of independent contractors to full-time employees has meaningfully risen among small and medium-sized businesses in states and major metropolitan areas across the country."
In other words, small and mid-sized businesses are using more independent workers and fewer traditional employees.
The article chart below shows this data for various cities (click on the chart to enlarge).
This data comes on top of several recent studies showing large companies are increasing their use of contingent labor.
Last week we covered two of these studies:
- an Ardent Partners study showing that about 1/3rd of large company workforces are currently contingent and the percentage is forecast to grow to 45% by 2017.
- a study by CGMA showing the global use of contingent workers is expected to substantially increase over the next 5 years.
The evidence that companies large and small are increasing their use of contingent labor is rapidly piling up.
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