The freelance economy

The labor market is changing, with companies increasingly relying on freelancers to cut costs—a shift that critics say the Labor Department doesn't reliably measure. The last time a government agency released numbers on freelance contractors was 2006--when the Government Accountability Office estimated that 42 million Americans, roughly one-third of the workforce, were engaged in some form of "contingent" labor.

The trend is gaining momentum. Private forecasters estimate freelancers could account for half the workforce within the next fifteen years. One reason--firms are using information technology to do more short-term projects, fueling a rise in temporary hires. And since benefits make up a third of staff compensation, employing freelancers makes financial sense.

In the graphic below, freelancer data from Ed Gandia's 2012 Freelance Industry Report. The study surveyed 1,491 freelancers in more than 50 different fields and professions.