Is the growth in the number of solo businesses a good sign for the economy?
The number of U.S. businesses without paid employees—mostly self-employed individuals with unincorporated businesses—rose 1.1% to 22.74 million in 2012, the latest data available, according to a new report by Census this week. “Non-employer” businesses have increased nearly 7% since dipping to 21.35 million in 2008, the first full year of the 2007-2009 recession.
The new Census data jibe with reports from the Labor Department that suggest self-employment took a hit during the recession but has since come back slightly.
Overall, the readings could be a sign that some Americans are feeling more confident about their ability to launch businesses as the economy gradually recovers from the recession. But it could also point to the persistent difficulty many face in landing full-time jobs.
(Source: Wall Street Journal)
