The Long Term Shift to Contract Labor by Small Businesses
Small Business Labs
MAY 25, 2021
Data from the IRS shows that sole proprietor small businesses spent $69.2 billion on contract labor in 2018 (the most recent data available). Contract labor refers to nonemployee labor, such as freelancers, gig workers, etc. This is up from $64.8 billion in 2017 and just $34.4 billion in 2010. Over the period from 2010 to 2018, contract labor spend by sole proprietors increased by an annual growth rate of 9.1%.
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