Why More Workers Are Saying ‘No Thanks’ to a Full-Time Job
After years of keeping a conservative head count, companies have finally started to hire workers again. But they may find that many workers aren’t interested in becoming full-time employees anymore.
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The number of independent workers increased by 12 percent in the past five years, and nearly 80 percent of those who work for themselves plan on remaining independent, according to a new report by MBO Partners. One in seven non-independent workers is considering going freelance.
Nearly 80 percent of freelance workers say that they’re happier working for themselves, thanks to the flexibility of being their own boss. Plus, they’re earning decent money.
More than a quarter of independent workers earn more than $75,000 per year, and the number making more than $100,000 per year has surged by 45 percent to almost 3 million.
The majority of today’s freelancers have actively chosen to go independent. Technology has made the shift easier, and Obamacare has made it possible for independent workers to secure health benefits for themselves and their families. However, they may be slacking when it comes to retirement planning. Seven in 10 self-employer people don’t save for retirement regularly, according to a separate report from TD Ameritrade.
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The number of full-time, independent workers now totals nearly 18 million Americans, with another 12.5 million who doing contract work part-time. Independent workers say they feel more secure working freelance, thanks to an average of four or more revenue streams, according to the MBO Partners report.
Chart of the Day: SALT in the GOP’s Wounds
The stark and growing divide between urban/suburban and rural districts was one big story in this year’s election results, with Democrats gaining seats in the House as a result of their success in suburban areas. The GOP tax law may have helped drive that trend, Yahoo Finance’s Brian Cheung notes.
The new tax law capped the amount of state and local tax deductions Americans can claim in their federal filings at $10,000. Congressional seats for nine of the top 25 districts where residents claim those SALT deductions were held by Republicans heading into Election Day. Six of the nine flipped to the Democrats in last week’s midterms.
Chart of the Day: Big Pharma's Big Profits
Ten companies, including nine pharmaceutical giants, accounted for half of the health care industry's $50 billion in worldwide profits in the third quarter of 2018, according to an analysis by Axios’s Bob Herman. Drug companies generated 23 percent of the industry’s $636 billion in revenue — and 63 percent of the total profits. “Americans spend a lot more money on hospital and physician care than prescription drugs, but pharmaceutical companies pocket a lot more than other parts of the industry,” Herman writes.
Chart of the Day: Infrastructure Spending Over 60 Years
Federal, state and local governments spent about $441 billion on infrastructure in 2017, with the money going toward highways, mass transit and rail, aviation, water transportation, water resources and water utilities. Measured as a percentage of GDP, total spending is a bit lower than it was 50 years ago. For more details, see this new report from the Congressional Budget Office.
Number of the Day: $3.3 Billion
The GOP tax cuts have provided a significant earnings boost for the big U.S. banks so far this year. Changes in the tax code “saved the nation’s six biggest banks $3.3 billion in the third quarter alone,” according to a Bloomberg report Thursday. The data is drawn from earnings reports from Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo.
Clarifying the Drop in Obamacare Premiums
We told you Thursday about the Trump administration’s announcement that average premiums for benchmark Obamacare plans will fall 1.5 percent next year, but analyst Charles Gaba says the story is a bit more complicated. According to Gaba’s calculations, average premiums for all individual health plans will rise next year by 3.1 percent.
The difference between the two figures is produced by two very different datasets. The Trump administration included only the second-lowest-cost Silver plans in 39 states in its analysis, while Gaba examined all individual plans sold in all 50 states.