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The New Independent Workforce

INDEPENDENT WORKFORCE THE NEW THE RISE OF THE NEW ECONOMY THE GROWING WORKFORCE Many workers today do not work for organizations on a permanent basis. These independent workers, both solopreneurs and independent service firms, known collectively as the contingent workforce, are present in many different fields. But who are they? We examine this unique section of the labor force. From 1995 through 2012, the total workforce of contingent workers (self-employed and solopreneurs) grew by an estimated 4.3 million workers. Despite economic downturn, the overall contingent workforce has held steady and is projected to grow to 40 percent. 39.6 42.6 43.9 64.9 MILLION MILLION MILLION MILLION 1995 2005 PROJECTED 2012" PROJECTED 2020" 100% 50% 50% 100% 322% 30.6% 31% 40% WHO DID SOLOPRENEURS HIRE IN 2010? And despite the economic recession, this workforce holds strong, bringing in more workers and providing jobs. In 2010, 27 percent of those surveyed in the Freelancers Union Annual Worker Survey had hired other workers. 2% FULL-TIME 3% PART-TIME TEMPS J/0 21% OTHER FREELANCERS 0% 5% 10% 15% 20% 25% 30% WHO IS THIS NEW INDEPENDENT WORKFORCE? This contingent workforce is comprised of small and mid-sized independent firms, agency temporary workers, contract company workers, day laborers, direct-hire temps, independent contractors, on-call workers, self-employed workers, and standard part-time workers, all working in a variety of fields. OCCUPATION (GAO DID NOT INCLUDE SMALL AND MID-SIZED FIRMS IN DATA.) OIN WHAT PROFESSION DO YOU WORK? 30% 30% 24% -24%- 12% 9% 6% 4%S 2% 25% 25% OTHER WRITERS 20% 20% COPYWRITERS DESIGNERS 15% 15% TRANSLATORS 7% 4% 10% WEB DEVELOPERS 10% EDITORS 5% 5% BUSINESS MARKETING 0% 0% 3% ASSISTANTS SOFTWARE DEVELOPERS WORK STATUS WORK LOCATION WHAT IS YOUR WORK STATUS? 3 WHERE DO YOU WORK? FILEINE 66% O 100% !| 100% -90.2% HOME OFFICE 80% 80% 16% 4.9% 60% 60% PRIVATE OFFICE PART-TIME WITH A SECOND FULL-TIME JOB 40% 40% 13%- 3.1% 20% SHARED SPACE PART-TIME 20% 0% 0% 5%- 18% COFFEE SHOP FULL-TIME WITH A SECOND FULL-TIME JOB WHY FREELANCE? It is a misconception that most solopreneurs enter the independent workforce solely due to layoffs. Below we examine some of the reasons why this type of employment has become so alluring. WHY DID YOU CHOOSE TO WORK INDEPENDENTLY? Even through the economic recession, the contingent workforce has held strong, sustaining lower unemployment rates than the national average. -21.4% 30% 30% FOLLOW MY PASSIONS na 25.9% FLEXIBILITY OF SCHEDULE 25% 25% NATIONAL AVERAGE SELF-EMPLOYED 14.1% 20% 20% FREELANCE WAS NOT ORIGINALLY PLANNED, FELL INTO IT 15.7% 9.1% TO BE MY OWN BOSS 88 O15% 15% 10% -10% SUPPLEMENTAL INCOME 13.8% | LAY-OFF OR DOWNSIZING 5.8 5% 5% JAN 2012 0% 0% THE BUSINESS OF CONTINGENCE The contingent workforce continues to thrive as more and more businesses utilize this segment. INTEREST FROM THE BUSINESS SECTOR Savvy businesses are taking advantage of this new shift and turning to independent workers. This trend is only expected to continue. A 2010 Economist Intelligence Unit report found 61 percent of senior executives Tech giant Oracle predicts use of this contingent workforce will increase percent of firms have 90% 61% 40% expect a growing proportion of functions to be outsourced to used freelance or contracted talent. this labor force. over the next 10 years. S425 And spending on this workforce is only growing, expanding to incorporate small independent firms as well as solopreneurs. American businesses spend more than $425 billion per year on contingent labor, according to a 2009 Staffing Industry Analysts Contingent Workforce Estimate. BILLION PER YEAR The strong contingent workforce is evidence of a shift in current employment models. Businesses are pulling resources from the labor force when and where needed, creating a new, more fluid dynamic in the overall workforce. SOURCES: CNBC.COM I BLS.GOV I 2006 GOA REPORT I 2011 FREELANCE INDUSTRY REPORT I 2011 COUNTING THE INDEPENDENT WORKFORCE I 2010 ECONOMIST INTELLIGENCE UNIT REPORT I ORACLE I STAFFING INDUSTRY ANALYSTS I CNNMONEY.COM *BASED ON PROJECTIONS BY BLS AND CNN MONEY. DATA FOR CONTINGENT WORKFORCE WAS NO LONGER 1 mavenlink COLLECTED BY GAO OR BLS POST 2005.

The New Independent Workforce

shared by ColumnFive on Mar 02
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Many workers today do not work for organizations on a permanent basis. These independent workers, both solopreneurs and independent service firms, known collectively as the contingent workforce, are p...

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