Self-employment

More and more Canadians are becoming their own boss, perhaps because they prefer the independence and flexibility offered by self-employment, or because they can't find a suitable alternative. Our ability to remain connected wherever we are—through computer, fax and voice mail—means that we can also work wherever we are. These tools of the information age also make it easier than ever before and much cheaper to set up one's own business.

Canadians have thus been embracing the idea of 'being their own boss.' From 1976 and 2002, the number of self-employed workers nearly doubled. In 2002, a full 15% of all Canadian workers were self-employed—almost as many as were working in the public sector.

Some industries are more conducive to self-employment than others. Agriculture has the greatest proportion of people working for themselves: 64% either own their own farm or are working on the family farm. Professional, scientific and technical workers follow, with nearly 33% self-employed. Since they rely heavily on employees and infrastructure, the accommodation and food services industry had only 10% self-employment.

Interestingly, self-employment is not as big a hit with our southern neighbours, where it accounted for just 6% of all jobs created in the 1990s. Some analysts have suggested that self-employment rose faster in Canada than in the United States because the recession and its aftermath were harsher here. Others point out differences in tax rates and the incentive for many Americans to receive benefits from employers, such as medical coverage.