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Transportation and Warehousing Sector Drives Nonemployer Business Growth

The number of businesses without paid employees rose by 831,317 or 3.6 percent to 23.8 million establishments from 2013 to 2014. Businesses without paid employees, such as operating a family-run corner store, acting as a real estate agent, pet sitting, blogging, and snowplowing, are refered to as nonemployer businesses. The transportation and warehousing sector (NAICS 48-49) propelled the increase, leading all sectors in both rate of change (with a 13.5 percent increase) as well as absolute number of establishments added (148,626) and reached 1.3 million nonemployer establishments in 2014, according to U.S. Census Bureau statistics released today. The District of Columbia, Massachusetts and California led all states or equivalents in the rate of transportation and warehousing nonemployer growth from 2013 to 2014, at 38.9 percent, 36.9 percent and 24.8 percent, respectively. Among the 50 counties with the highest number of nonemployer establishments, California was home to six of the 10 counties with the highest rate of annual growth, with San Francisco leading these 50 counties with 61.5 percent growth in this sector. San Francisco also led among these same 50 counties in the rate of increase for transportation and warehousing receipts with 33.8 percent annual growth in 2014. Among these same 50 counties, two of the five counties with the fastest rate of increase in receipts for this sector were in the Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va. metro area (24.1 percent increase in Fairfax, Va., and 23.7 percent increase in Montgomery, Md.). The District of Columbia topped all states or state-equivalents in the rate of increase for transportation and warehousing receipts at 35.9 percent to $78.3 million, followed by Illinois (18.4 percent to $4.9 billion) and Texas (17.7 percent to $10.2 billion) in 2014…”

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