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Use of Contract Labor by Small Businesses Continues to Grow

Small Business Labs

billion on contract labor (freelancers, temps, etc.) in 2016, up from $34.4   Way back in 2003, contract labor was only about 20% of the labor costs of sole proprietors. .  As the chart below shows, U.S. sole proprietors spent about $56.8 billion in 2010.   This is an increase of 65% between 2010 and 2016. 

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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.  In 2013 contract labor was 36% of total labor costs, up from 31% in 2010 and just 20% in 2003

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