Final answer:
A self-employed worker is commonly referred to as an Independent contractor. They provide services on a contractual basis and are responsible for their own taxes and tools. Temporary workers, interns, and part-time workers are not classified as independent contractors but may contribute to reducing frictional unemployment.
Step-by-step explanation:
A worker who is self-employed is commonly referred to as an Independent contractor. Independent contractors are individuals who are in business for themselves and provide services to clients or businesses on a contractual basis. Unlike employees, they do not work regularly for a single employer but rather take on work assignments as per the needs of their business.
They are responsible for their own taxes and often provide their own tools or equipment needed for the jobs they perform. This term is distinguishable from other types of workers such as temporary workers, contingent contractors, or seasonal help, which refer to employment situations that may also lack long-term commitments but differ in terms of employment relationship and dependence on employment agencies or seasonal patterns.
For instance, a construction worker who takes a temporary job at a fast food restaurant is not an independent contractor but a temporary worker. This can be contrasted with scenarios such as a college student doing an unpaid internship or someone who decides to take a part-time job because they could not find a full-time position; these individuals are not independent contractors.
Moreover, the growth of the temporary worker industry has played a role in reducing the natural rate of unemployment by providing jobs through temp agencies and serving as a stepping stone to permanent employment, thereby decreasing frictional unemployment.