Independent Contractors: Integral to the U.S. Economy
Independent contractors and small businesses are crucial to the U.S. economy. They not only pay more in taxes than traditional employees — they also create more jobs than established, larger corporations. Economic studies show that for the past 30 years, new small businesses, including independent contractors, have been responsible for the vast majority of net growth in U.S. employment. In this time of economic recovery, independent contracting is creating jobs when we need them the most.
- Independent contractors and other types of alternative workers add a combined $626 billion in annual personal income to the U.S. economy, which is equivalent to one out of every eight dollars earned in the U.S.
- The U.S. Bureau of Labor Statistics says there is a clear path from self-employment to small-business creation, and small businesses create new jobs by hiring employees of their own.
- In 2005, more than 20% of independent contractors in the U.S. employed at least one additional person, and many hired several employees.
- The number of new jobs created by new and expanding small businesses create more jobs than larger companies and are better prepared to withstand difficult economic times without laying off workers.