Self-Employment Laws Go Into Effect: This Day In Market History

Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened

On this day in 1962, The Self-Employed Individual Retirement Act became federal law. The law permits certain self-employed individuals to be treated as employees for the purpose of pension, annuity and profit-sharing plans.

Where The Market Was

The Dow closed around 724.71 and the S&P 500 traded around 56.17.

What Else Was Going On In The World

October 1962 was perhaps most known for the Cuban missile crisis spanning from Oct. 16 to Oct. 28. This 13-day confrontation between the U.S. and the Soviet Union stemmed from a dispute over missile deployment in Italy and Turkey.

Rise In Self-Employment

The Self-Employed Individual Retirement Act preceded a trend of rising self-employment rates in the U.S. According to a study by AARP this year, self-employed workers amount to 15 million, and could rise to 42 million by 2020.

Millennials are driving the labor shift today: 42% of the expected influx of self-employed workers are in the demographic group, the AARP said.

Companies like Upwork match an array of freelancers or self-employed individuals to jobs ranging from computer development to accounting. With the rise of remote work technology, several industries both allow and encourage contractual jobs that are completed online.

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