An estimated 25 million people in the United States call themselves ‘self employed.’
They might hold multiple jobs, run online businesses or other small shops, or function as independent contractors or ‘freelancers.’
The Promise and Peril of the Freelance Economy provides a comprehensive overview of how self-employment has changed in America, and reflects changes in our economy and society.
“Traditionally, self-employment has been countercyclical,” points out Frank Braconi, the chief economist in the New York City comptroller’s office. “When the economy went down—when wages and salaries went down—self-employment went up.” That was evidence that “people were being forced into self-employment as a response to losing their paid, salaried jobs.” But in New York City, at least, that has changed. “The increases in self-employment are not so countercyclical any more,” he says. They’re neutral—“which is indirect evidence that more of the self-employed today are self-employed through choice than was once the case.”
The article focuses mainly on three categories of self-employed:
Soloists - Not just creative arts professionals, but plumbers, electricians and physicians in solo practice
Microbusiness Owners: Traditional entrepreneurs who sell goods rather than their services
Permalancers: Independent Contractors who have loyal clients and long term contracts
A description of how entrepreneurs are coping with the high costs and difficulties in obtaining health insurance is especially interesting, especially the discussion of the increased interest in Health Savings Accounts (HSAs) to reduce their premiums. HSA’s are tax-free savings accounts that are tied to high-deductible insurance plans that Congress and President Bush created in 2003.
What’s the mix of Soloists, Microbusiness Owners and Permalancers in your community?
My husband Tim and I had a brief discussion today with a local government employee, whose son will graduate from college next month.
We inquired about what his son had majored in, where he wanted to live, what kind of job he hoped to go after.
Of course that led us to share some thoughts about ‘the work ethic’ and how employees in different age groups seem to value different things.
Which led me to share something I’d read recently on some great community development and rural development blogs, like ReimagineRural.com
Specifically, I mentioned that people in their mid-20s to mid-30s (often referred to as ‘Millennials’) seem to choose where they want to live first and THEN look for a job in that location.
And that trend has consequences for rural communities, because they need to viewed as attractive and desirable places for 25-35 year olds to live and work BEFORE they choose to move there.
And our local government employee had an interesting response.
He said, “Well, that’s West Coast job hunting. You decide where you want to live first, then find a job.
East Coast job hunting is when you send out hundreds of resumes and go where the job is rather than where you really may want to be.”
Since I was raised in Connecticut and chose to live in Appalachia, I realize I’m not the best one to ask.
What do you think?
What comes first? The Chicken or the Egg?
How do people decide a rural community is best for them?
What are the differences when ‘East’ meets ‘West’ and can rural America rise to the challenge?
A University of Nebraska sociologist has found that the decreasing rural population of Nebraska is changing the way business is conducted in the state.
Randy Cantrell with the Nebraska University Rural Initiative, reports that in most rural counties of Nebraska self-employment accounts for 18 to 30 percent of jobs and pretty much all job growth.
His findings made me wonder how Nebraska compared with other states:
Cantrell thinks self-employment is on the rise in rural Nebraska. But he hasn’t been able to verify the details through his research, namely an annual rural poll that surveys rural residents on well-being, policy and work issues. He says the rural poll might be asking the wrong question.
In the past, people have been asked whether they have a business. Cantrell said that question may leave out those who still get a paycheck from an employer but who technically are private contractors. He used the example of inbound telemarketers, who he thinks can rightfully assert that they have a business.
As rural areas continue to see their populations fall, Cantrell said, employers may feel more pressure to shift away from the traditional way of doing business and rely on private contractors.
“There’s still a demand for service,” he said, “but not enough to support a business of several employees.”
This study also reported a continued decline in those age 20 and younger living in rural areas. That age group has declined in all but seven Nebraska counties, with one (Cherry County) experiencing a 20 percent drop in the 20 and under age group from 2000 to 2007.
How does your State and rural area compare to these statistics from Nebraska?
And what impact does changing population and employment statistics have for you and your business?
“To read the papers and to listen to the news… one would think the country is in terrible trouble. You do not get that impression when you travel the back roads. The small towns do care about their country and wish it well.”
Charles Kuralt
American radio and television Journalist
(1934-1997)
Senate Democrats announced a “rural agenda” for the 111th Congress today. The website created to describe the issues they understand to be important to rural America is called Rural Outreach.
“Rural America reflects our nation’s most precious values: hard work, independence, and an unparalleled commitment to community. Senate Democrats provide a voice for the over 50 million hard-working rural Americans and support an agenda that addresses the unique challenges they face. Senate Democrats will fight for policies that revitalize and reinvest in our communities so that, together, we can build a stronger rural America.”
The new website was announced by Sen. Blanche Lincoln, D-Ark., a member of the Senate Agriculture Committee. Senator Lincoln has been appointed chair of Rural Outreach for the Senate Democratic Caucus.
“Our rural communities are suffering during these tough economic times, and it is critical that we focus on policies that will give them the economic boost they desperately need and deserve,” said Lincoln. “This agenda will help guide Senate Democrats as we work toward policies that will revitalize and reinvest in the rural economy.”
The areas Senate Democrats say they will focus on during the next two years are:
• Health care — Providing rural Americans with access to affordable, quality health care.
• Education — Offering students in rural America an opportunity to excel in the classroom through education policy that recognizes the unique challenges for rural schools.
• Economic development — Promoting economic development programs and initiatives to give rural communities the tools needed for success in a changing global economy.
• Agriculture — Supporting family farmers, ranchers, and producers as a vital part of the rural economy.
• Energy and natural resources — Promoting rural America as a leader in the development of renewable energy technologies that will help stimulate the rural economy, while preserving our environment for future generations.
• Veterans and National Guard — Ensuring that our nation’s veterans and service members are provided with benefits and services worthy of their sacrifices.
• Rural law enforcement and Homeland Security — Equipping first responders with the training and tools necessary to protect rural communities.
• Infrastructure — Investing in infrastructure in order to create jobs and build a sustainable rural economy.
“Senate Democrats will continue to make the more than 50 million hard-working rural Americans a top priority,” said Lincoln.
