There’s no shortage of surveys about self-employed workers and freelancers. What about the people employed by self-employed workers?
A Pew Research Center report published this week delves into that question. The key finding: About a quarter of self-employed Americans report that they normally have at least one paid employee.
Here are some key findings in the report:
- Roughly a third of the national workforce--44 million jobs--is comprised of self-employed workers and people they hire.
- One in 10 of the country’s 146 million workers are self-employed.
- These self-employed workers employ 29.4 million people.
Pew points out that type of business matters when it comes to the self-employed employing others.
“Most job creation by the self-employed--22.5 million out of 29.4 million--flowed from those with incorporated businesses. While most self-employed workers owned unincorporated businesses, those with incorporated businesses were three times as likely to employ others for pay, by 41% to 13%,” reads the report.
And those self-employed people with incorporated businesses also tend to hire more employees than those whose businesses are not incorporated.
Pew doesn’t have data for employees of self-employed entrepreneurs from 2014, so trends are hard to target. That said, the research institution asserts that there may be a decline in hiring.
The workforce had a smaller percentage of self-employed workers in 2014 than it did in 1994. There has also been a drop in the percentage of the self-employed who hire help. In 1995, 21 percent reported having employees. In 2014, 13 percent said they did.