The self-employed are back at work in pre-COVID-19 numbers, but their businesses have smaller payrolls

The more than 150 million workers in the United States include about 16 million workers who identify as self-employed. They work for profit or fees in their own enterprises and are a representation of America’s small business owners. Many also create jobs for other workers, on the order of about 30 million in recent years.

A new Pew Research Center analysis of government data finds that the COVID-19 recession, which curtailed business operations for public health reasons, had a similar impact on employment levels among both those who are and are not self-employed. However, the recovery has been stronger for self-employed workers. At the same time, hiring by the self-employed has fallen since 2019, with the cutbacks emanating mainly from businesses run by men.

Self-employment can be a gateway into the business world for the nation’s entrepreneurs. It can also be a desirable option for those wanting to be their own boss or in search of more flexible work hours. Some workers who lose their jobs in business downturns turn to self-employment, which has risen during recessions. In the coronavirus pandemic, it also may have been a useful option for some parents juggling child care and work.