The 1099 Economy is Growing

ZenPayroll decided recently to look at whether the 1099 economy, which has garnered quite a bit of media attention recently, is really growing as fast as people think. The short answer is that over the past year, the ratio of independent contractors to full-time employees has meaningfully risen among small and medium-sized businesses in states and major metropolitan areas across the country.

The nature of work is changing given the decline of lifetime employment. Today, very few people plan to work for the same company their whole life, and people often have several jobs at one time. As a result, and as shown by ZenPayroll’s data, more small business owners are employing contractors as a part of running their business. There are a number of other reasons for this general trend toward a more flexible work structure.

Click here to read the complete article in New Geography.

I suspect the 1099 economy is on the rise in Ashtabula County. Published data indicate that 1,819 people were self-employed in the county in 2013. That represents just over 30% of the county’s total business establishments. Watch for more detailed analysis of this sector of the local economy in the near future.

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