The tepid economic recovery has done little to encourage Americans to strike out on their own. Since the recession officially ended at the end of 2009, the rate of the self-employed has dipped from 10.6% to 10.0%. There are several possible factors to explain the decline. One, people may feel there is not strong enough demand currently for the goods or services a new company could offer. Second, giving up a job may be too costly, in terms of steady pay or benefits. Third, entrepreneurs may be worried about the impact that health care reform or possible changes in income tax rates could have on a new business venture.

-Noel Brinkerhoff

 

A Decline in Self-Employment (by Catherine Rampell, New York Times)

Self-employment in the United States (Monthly Labor Review) (pdf)