Small Business Labs

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Study: Self-Employed Have Higher Lifetime Earnings Than Salary Workers

Small Business Labs

Key quote: Manso finds that entrepreneurs experience only slightly higher lifetime earnings variance -- that is, risk -- than people who go the salaried route. Key quote from the academic study: self-employed workers experiment with new ideas when they leave the salaried workforce to become self-employed.

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The Long Term Shift to Contract Labor by Small Businesses

Small Business Labs

Spending on salaries and wages grew from $73.7 the spending on traditional employee salaries and wages from 2010 to 2018. Over the period from 2010 to 2018, contract labor spend by sole proprietors increased by an annual growth rate of 9.1%. billion in 2010 to $97.9 billion in 2018, or an annual growth rate of 3.61%.

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The California Creative Economy

Small Business Labs

Key quote from the report: "In certain sectors, self-employment is more common than wage and salary employment. self-employed persons in Los Angeles County for every salaried worker. The communication arts also had a high number of self-employed workers relative to salaried employees: In 2015, there were 0.6

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Use of Contract Labor by Small Businesses Continues to Grow

Small Business Labs

  Over the same period, spending on salaries and wages (meaning traditional employees) rose from $73.7 .  As the chart below shows, U.S. sole proprietors spent about $56.8 billion on contract labor (freelancers, temps, etc.) in 2016, up from $34.4 billion in 2010.   This is an increase of 65% between 2010 and 2016. 

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Tech Jobs Moving to the Midwest

Small Business Labs

cities are more expensive than outsourcing overseas, rising salaries and costs overseas is making outsourcing there less of a bargain. The New York Times article  Hot Spot for Tech Outsourcing: The United States looks at the outsourcing of software development tasks to lower cost U.S. cities, mostly in the Midwest.

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Use of Contract Labor by Sole Proprietors Surging

Small Business Labs

  Over the same period salary and wage expense increased only 10.7%. .  While looking through the data we were struck by the extent of the growth in the usage of contract labor - contingent workers such as freelancers, independent contractors, temps, etc. -   by sole proprietors. 

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Farmshoring Knowledge Work

Small Business Labs

The salaries for new, partner-track legal associates skyrocketed in the decade preceding the Great Recession.  .  Key quote from At Well-Paying Law Firms, A Low-Paid Corner : The nation’s biggest law firms are creating a second tier of workers, stripping pay and prestige from one of the most coveted jobs in the business world.

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