Older Workers and Self-Employment: A Fact Sheet

Self-employment is a critical aspect of understanding the 50+ workforce. Not only are 50+ workers more likely to be self-employed, but their businesses are also more likely to provide employment opportunities for others. The economic contributions of older self-employed workers include the services and products they offer and the jobs and livelihoods many of their businesses support.

This Fact Sheet provides details on self-employment trends among various age groups and other demographic groups. It mainly draws on self-employment data from monthly and annual Bureau of Labor Statistics (BLS) Current Population Survey (CPS) outputs, which show trends in self-employment over time and by demographics such as sex, race and ethnicity, and worker characteristics such as education level and income.

Key takeaways include:

• Workers ages 50 and older are most likely to be self-employed. The percentage of the workforce that is self-employed rises sharply at ages 65 and older.
• Self-employment in the United States has declined over time for all age groups, especially among older workers (i.e., those ages 50 and older). Despite this decline, those ages 50+ and especially workers 65+ and older are most likely to be self-employed.
• The decline in self-employment is sharpest among older men and older workers in nonmetropolitan areas.
• Although self-employed workers of all ages are more likely to be unincorporated, older self-employed workers are more likely to be incorporated than their younger counterparts.
• Self-employment rates vary by race and ethnicity across age groups. Among 50+ workers, white workers are the most likely to be self-employed, and Black workers are the least likely to be self-employed.
• Across age groups, the self-employed are most likely to hold a bachelor’s degree and high school diploma.
• Self-employed workers are concentrated in the middle-income population and are most likely to work in the professional and business service industry and in full-time jobs.
• Self-employed workers ages 50+ are most likely to have paid employees.

The percentage of workers who report that they are self-employed, either by unincorporated or by incorporated status (i.e., the total self-employed), has declined since the mid-1990s across all age groups, but the decline is most notable among older workers. More research is needed to understand the drivers and implications of declines in self-employment among older workers. Policymakers should consider developing programs and strategies to ensure self-employment is a sustainable career option for older and younger workers.