Statistics on Independent Contractors
Feel alone? Don't worry, you're not. The U.S. Department of Labor says that approximately 8.5 million people in the United States identify themselves as independent contractors, independent consultants or freelance workers. Other sources say that number could be as high as 25 to 30 million. Whichever figure is true, this a movement that will continue to gain ground. With this trend in mind, we've compiled the following list of statistics from various sources to illustrate just how substantially the workforce is changing.
Free agents are swelling the ranks of the self-employed. Half of small business owners are independent contractors.
--Current Population Survey, U.S. Department of Labor
Working solo must be a guy thing: Two-thirds of independent contractors are men.
-- Current Population Survey, U.S. Department of Labor
Independent contractors aren't as young and hip as entrepreneurs. Nearly four out of five are at least 35 years old.
-- Current Population Survey, U.S. Department of Labor
Working solo isn't for dummies. Just ask independent contractors between the ages of 25 and 64 -- 34 percent of them have college degrees.
-- Current Population Survey, U.S. Department of Labor
Despite the unsteadiness of their work arrangements, independent contractors want stability on the home front. Nearly 70 percent are married -- compared to 59 percent of traditional workers.
-- Current Population Survey, U.S. Department of Labor
Women who work as independent contractors are 3.2 percent more likely to have preschool children than traditional workers.
-- Current Population Survey, U.S. Department of Labor
It's feast or famine for independent contractors. About 26 percent of them work less than 35 hours per week, but 30 percent work 49 hours or more.
-- Current Population Survey, U.S. Department of Labor
Both male and female independent contractors are likely to be managers, writers, artists and real estate and insurance salespersons. From there, men gravitate to construction, women work in door-to-door sales and child care.
-- Current Population Survey, U.S. Department of Labor
Independent contractors are a happy group -- 84 percent of them prefer free agency to traditional work arrangements.
-- Current Population Survey, U.S. Department of Labor
Why do people go solo? Men like being their own boss; women like the flexibility.
-- Current Population Survey, U.S. Department of Labor
Independent contractors are in for the long haul -- more than 40 percent have been working independently for 10 years or more.
-- Current Population Survey, U.S. Department of Labor
Free agents like their solitude. 84 percent have no employees.
-- Working Solo
Full-time independent contractors make an average of 15 percent more than their traditional counterparts.
-- Current Population Survey, U.S. Department of Labor
Male independent contractors earn 50 percent more than their female
counterparts.
-- Current Population Survey, U.S. Department of Labor
Most independent contractors can afford to get sick -- three-fourths of them have health insurance coverage.
-- Current Population Survey, U.S. Department of Labor
Free agents are looking ahead -- 37 percent of them have some type of pension plan.
-- Current Population Survey, U.S. Department of Labor
Business insurance isn't high on free agents' list of priorities - 60 percent of them have none.
-- Working Solo
Free agents seem like a health conscious group. Most of them have health insurance -- 33 percent buy their own; 28 percent get it from their spouse.
-- Working Solo
22 percent of independent contractors use the internet to conduct research, 23 percent communicate via email and 16 percent use it to stay in touch with customers.
-- Working Solo
90% of small business failures can be traced to poor management resulting from a lack of knowledge.
-- Dun and Bradstreet
40% of U.S. employees work at home in one way or another. That number is expected to double in the next few years.
-- "Birth of a Home Business" from Tripod
42% of employers have fewer than 50 employees.
-- Inc. Online
Of the Inc. 500 new businesses, 72% of those successful CEOs said they had first offered the idea for their company to their previous employers.
-- Inc. Online
Among the Inc. 500 CEOs:
* 8% are female
* 44% are in their 30s
* 17% are in their 40s
* only 5% are over 50
-- Inc. Online
By the year 2010, 1/2 of Americans will be in 'new century' (a.k.a. 'free agent') jobs.
-- PBS Career Center for Teens
People are starting home business at a rate of 2 million per year.
-- American Demographics Magazine
The number of Americans who described themselves as self-employed rose 15% between 1997 and 1998.
-- Bureau of Labor Statistics
The level of job satisfaction for independents is strikingly high. 84% said they preferred being independent to traditional job arrangements.
-- Bureau of Labor Statistics
More than 75% of independents said their work style was a matter of personal choice, not economic necessity. Men and women independents stressed different reasons for their choices: Men said they enjoyed being their own boss, whereas women said flexibility and the ability to meet family obligations were their primary motives.
-- Bureau of Labor Statistics
Almost all independent contractors, 96.5%, believe they could continue happily in their arrangement as long as they wished. They also earn 15% more than their counterparts in traditional jobs.
-- Bureau of Labor Statistics
Employee tenure is down 5% since 1996. The average worker in the United States holds 8.6 different jobs from ages 18 to 32.
-- Bureau of Labor Statistics
The average independent has been working for his or herself for nearly 8 years. The average employment tenure for traditional workers is now under five years.
-- Bureau of Labor Statistics
Between 1991 and 1997, the proportion of American workers with flexible schedules increased from about 15% to about 28%.
-- Bureau of Labor Statistics
Half of all Americans would choose a new line of work if they had the chance.
-- Wall Street Journal /ABC News poll.)
Only 16% of workers rate their chances for advance in their job as excellent; most, 61%, say their chances are poor.
-- The Institute for Work and Family, the National Study of the Changing Workforce
Hours on the job have increased close to 10% between 1977 and 1997. With the workweek heading toward 50 hours, it should come as no surprise that many employees (63%) would like to work less. On average, people would like to reduce their workweek by 11 hours.
-- The Institute for Work and Family, the National Study of the Changing Workforce
One in four Americans said they would like to fire their boss.
-- Gallup Poll: 1997
According to a yearlong study conducted by a team from McKinsey & Co. - a study involving 77 companies and almost 6,000 managers and executives - the most important corporate resource over the next 20 years will be talent. And even as the demand for talent goes up, the supply of it will be going down.
-- McKinsey & Co.
In 15 years, there will be 15% fewer Americans in the 35- to 45-year-old range than there are now. At the same time, the U.S. economy is likely to grow at a rate of 3% to 4% per year. So over that period, the demand for bright, talented 35- to 45-year-olds will increase by, say, 25%, and the supply will be going down by 15%.
-- McKinsey & Co.
75% of top corporate executives surveyed said that their companies are either chronically short of talent or suffer talent droughts.
-- McKinsey & Co.