Pundits like to talk about the unemployment rate as a barometer for the state of the economy, and the problems associated with it (”discouraged” workers who’ve stopped seeking work aren’t included in the calculation). One of the biggest problems, though, is seldom mentioned. When government agencies survey big companies to check the size of payrolls, and use this number to announce how many new jobs have been “created,” they miss all sorts of folks who don’t show up on anyone’s payroll, but may be earning big bucks nonetheless.

Finally, though, the government is starting to aggressively track self-employment. The Labor Department reports that the number of self-employed Americans rose by 156,000 in December, driving the total self-employment census to 9.865 million Americans, or 8.7% of all workers.

This number still undercounts people who technically work for themselves. If you incorporate as a small business person, your corporation employs you, even if you are the only person on the payroll. But still, it’s great to see that we’re finally getting a better picture of the modern economy (for more about the rise of self-employment, particularly among young people — warning, shameless plug ahead! — please see my new book, “Grindhopping: Build a Rewarding Career without Paying Your Dues” just released from McGraw-Hill).

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