“The number of people who primarily work on their own has swelled by 1.3 million since 2001 to 10.6 million, a 14% increase,” according to data from the Economic Modeling Specialists International (“EMSI”). In an article published in late July by Joel Kotkin in Forbes titled “The Rise of The 1099 Economy,” Kotkin explains how growth the number of self-employed in Houston has grown by 12% while its 1099 Economy has grown by 51% in the last decade.
In Houston, much of this growth is attributed to the energy industry, which has experienced a growth of 35% according to the EMSI report. This growth is partially fueled by a 75% increase in support activities for oil and gas operations. Similar to the increased dependence on the self-employed in the energy industry, the high-tech industry is increasing its numbers of self-employed.
The article cites the Houston culture as a main driver of this growth. Kotkin writes, “the city has a culture that encourages striking out on your own, and low costs and lighter regulation make it easier.” The Houston culture appears contagious as Texas currently ranks 3rd in total job creation, while ranking 49th in the creation of public jobs according to data compiled by Arizona State University. This indicates a growing private sector fueled by the increase of the self-employed and the rise of the 1099 economy.
