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More people are skipping the office and working for themselves instead
(Butch Dill / Stringer / Getty Images) Workers are choosing the flexibility of being self-employed.
More and more Americans are moving away from traditional jobs, and becoming self-employed or doing freelance work instead.
According to the Bureau of Labor Statistics, self-employed workers now make up 10% of the workforce overall.
That's nearly 15 million workers in the US.
Those numbers have grown considerably over the past decade, as shown in the two charts below from Zen99, a startup offering tax help to freelancers.
The number of people claiming self-employment income on their tax returns rose steadily between 2002 and 2012, the latest data available.
During those ten years, there was an average annual growth rate of 2.5%, compared to just a 1.1% yearly increase in the number of people filing tax returns overall.
Not only that, but self-employed workers are reporting more income than ever.
The total amount of taxes that they pay has nearly doubled, rising from $37 billion to $63 billion. That adds up to 72% growth over the measured time frame.
It's likely that some of these workers are reporting income from a part-time side hustle. As Zen99 notes, nearly 13% of all tax returns now include income from freelance work.
The statistics don’t explain the reason for this growth (are people seeking the jobs, or is self-employment their only choice?), but it’s worth noting that as of 2013, income growth for freelancers was rising at ten times the rate of people with traditional employment — making it an attractive prospect.
Since only 10% of the workforce is considered self-employed by the BLS, the other 3% might plan to keep their day jobs — or they're just waiting to take the plunge.
(Zen99)
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