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Use of Contract Labor by Small Businesses Continues to Grow

Small Business Labs

billion on contract labor (freelancers, temps, etc.) billion in 2010.   This is an increase of 65% between 2010 and 2016.    Way back in 2003, contract labor was only about 20% of the labor costs of sole proprietors. .  By 2010 it has risen to 31%. .  As the chart below shows, U.S.

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Use of Contract Labor by Sole Proprietors Surging

Small Business Labs

.  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.    As the chart below shows, sole proprietor contract labor expenses increased 38% between 2010 and 2013. 

2003 100