What makes you think that there is an increase labor costs?
Independent contractors pay taxes like everyone. They don’t file a W2 but they do pay estimated taxes monthly or quarterly. Plus they pay the full about in Social Security self employment taxes 15%. They also pay workers compensation if they have employees as well as business insurance.
If costs are rising then independent contractors, like any business, have to charge more to cover their expenses. For example if it cost more for your cleaning crew to drive to your house, they have to charge more to cover their travel expenses.
Illegal workers maybe employees or independent contractors. I don’t see how illegals and independent contractors are the same.
Likewise, if you hire a maid (household worker) you need to pay Social Security and insurance. If not, you’re the one violating the law, not the worker. Remember Zoe Baird?
To address the point of escalating costs…. we all know that contructions costs are increasing. So whether you hire a company to do your work or an individual contractor, the escalating cost of doing business is affecting them the same. Somehow, they have to pass on their costs to the consumer.
