[PEN-L:30328] Re: Self-employed query

[Doug Henwood <dhenwood@xxxxxxxxx>]

Seth Sandronsky wrote:

> Hello.  When self-employed people go out of business in the U.S.,
> how are they accounted for in the official job stats?

It's based on self-reporting. If people describe themselves as
self-employed and working, they're counted as such. If they describe
themselves as not working, they're either unemployed (if they're
actively looking for work) or not in the labor force (if they're
not). During recessions, laid-off workers frequently become
"self-employed," which may mean they're drumming up business while
pulling in little or no income.

Doug