Economic Development Futures Journal

Sunday, June 13, 2004

counter statistics

Self-Employment Trend Data

Nonemployer business establishments provide important insights to self-employment trends in an area. You may want to explore recent Census Bureau reports on this subject.

U.S. business establishments with no paid employees increased by 2.2 million between 1997 and 2002 to 17.6 million, according to 2002 Economic Census data released today by the U.S. Census Bureau. These nonemployer businesses recorded sales or receipts of $770 billion in 2002, a 31 percent rise over 1997.

Nonemployers consist mostly of individual proprietorships (15.4 million), but also include 1.1 million partnerships and 1.2 million corporations that do not file payroll taxes.

Repair and personal services, as well as other industries that comprise the "other services," experienced the greatest increase in number of businesses, with 523,000 new firms for a total of 2.5 million. Real estate and rental and leasing added 483,000 businesses to reach 1.9 million. Administrative and support and waste management and remediation establishments grew by 370,000 to nearly 1.3 million.

The sector with the most nonemployer businesses was professional, scientific and technical services at 2.6 million. Close behind were other services at 2.5 million and construction at 2.1 million.

The tabulations, titled 2002 Economic Census: Advance Nonemployer Statistics, show that four economic sectors accounted for more than half of the $770 billion in nonemployer receipts. They were: real estate and rental and leasing ($162 billion); construction ($115 billion); professional, scientific and technical services ($96 billion); and retail trade ($78 billion).

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