U.S. Job-Market Weakening Is Led by Self-Employed, Data Shows

[marmar]

from Bloomberg:



U.S. Job-Market Weakening Is Led by Self-Employed, Data Shows

By Carlos Torres

Feb. 6 (Bloomberg) -- The increase in U.S. unemployment that's jeopardizing economic growth is being driven by a drop in the number of people working for themselves, government figures indicate.

Hours worked by the self-employed dropped at a 15.5 percent annual pace in the last three months of 2007, the biggest decrease in 15 years, according to data provided to Bloomberg News today by the Labor Department.

The decline ``is probably related to the housing downturn, since one in six workers in construction is self-employed, twice the average for all industries,'' said Patrick Newport, an economist at Global Insight, a Lexington, Massachusetts, forecasting firm.

The figures may be another indication of how the deepest real-estate slump in a quarter century is filtering through the economic statistics. The Labor Department said today that worker productivity grew more than forecast last quarter as hours for all employees, including those who work for themselves, fell at a 1.5 percent pace, the most in five years.

The number of people running their own businesses dropped by 365,000 last quarter, compared with the same period in 2006, according to separate Labor Department numbers.

The decline in the number of hours worked by the self- employed last quarter reflected a 9 percent annualized drop in employment combined with a 7 percent decrease in average weekly hours for those still with work, the department said. .....(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=azkPwxaRn_Q0&refer=home

[ursi]

1. real estate agents, real estate brokers, mortgage brokers, etc ...

[SoCalDem]

2. and WHY are so many people SELF-employed?

I'm guessing that a LOT of them are self-employed out of desperation..and if they have a marketable skill....any skill,, they are becoming self-employed because at least they have a JOB..

Going along with that self-employment, is often a TOTAL LACK of health insurance for their families, so many self-employed people are one illness away from becoming destitute..