Labor Department gives better glimpse into the self-employed

As the economy struggles to create jobs, more workers are striking out on their own during the economic downturn with some newly generated data revealing that 14 million workers are self-employed, up from 9 million. 

Newly produced figures from the Labor Department provide a glimpse into the self-employed with 5.2 million who have set up their own businesses in one of the economy’s fastest growing yet most masked sectors of the workforce. 

{mosads}”The numbers are really important because its represents a shift,” said Sara Horowitz, founder and executive director of the  Freelancers Union. “We’re not just looking at manufacturing.”

In the course of 70 years, the employment index hasn’t changed much in its perspective, looking more closely at manufacturing with a focus on automobiles, steel and other heavy manufacturing, Horowitz said.

But these new figures are providing a clearer, more comprehensive picture of how the economy and its workers have evolved since 1940, as the self-employed — the so-called gig economy — with mobile freelance, part-timers, and independent contractors growing to about 30 percent of the workforce, according to a 2005 General Accounting Office report, the most recent figure available. 

In 2011 the question isn’t only whether someone is working full-time or out of work but whether someone is employed in “small, medium and large” ways, ranging from a few hours a week to 40 hours or more, Horowitz said. 

For the past five years, the Freelancers Union has been pressing the Labor Department to delve deeper into the number of self-employed and their role in the economy and modern workforce. 

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“We’re beginning to touch on the nuance of the situation,” Horowitz said.

As companies hire more independent contractors, they aren’t paying benefits such as retirement or health insurance and there has to be a greater focus to make sure there’s access, she said. 

Under the new healthcare law, those in lower income brackets will qualify for coverage whereas those who make more as a freelancer might not qualify, she said. 

“We need to start thinking about how are we going to make sure that people have retirement benefits, access to unemployment benefits and health insurance,” she said.

Horowitz said her group is working on a report to provide a more detailed look into the self-employed and their effect on the economy.