Zev Nadler wanted independence.

So when he opened the Las Vegas office of computer-consulting company interZnet four months ago, Nadler liberated himself from the pressures of assembling a permanent work force before building a strong business base.

"We didn't want to hire employees until we had momentum and a critical mass of business," said Nadler, whose clients include gaming companies Station Casinos, Shuffle Master and Aristocrat.

Two of the four staff members in the Hughes Center office of Scottsdale, Ariz.-based interZnet are working as independent contractors rather than full-time employees. Under the arrangement, the contractors earn a paycheck for projects completed instead of hours worked; the company does not withhold any taxes or Social Security payments, leaving it to the worker to pay taxes directly.

Nadler said interZnet's local operation will grow to 12 workers in the next year, and he expects a sizable percentage of his labor force will remain independent contractors.

Nadler isn't the only manager supplementing his staff with contractors.

Federal and state numbers show that retaining independent contractors rather than hiring full-time employees is increasingly common among businesses in all sectors.

The U.S. Department of Labor released statistics this week showing that independent contractors accounted for 7.4 percent of the nation's total job base in February 2005, up from 6.4 percent in February 2001. In Nevada, 10-year projections from the state's Department of Employment, Training and Rehabilitation showed that the number of independent contractors will increase 40.9 percent from 2002 to 2012 -- slightly faster than the 40.7 percent increase in the state's overall job base.

Cornelius Eason, president of Priority Staffing USA in Las Vegas, said the number of independent contractors his clients are hiring has risen about 25 percent a year over the last two years as more positions lose their full-time status. And Mike Micone, owner of Accountants Inc. in Las Vegas, said 57 percent of the 300 local companies he surveyed earlier this year have budgeted the use of independent contractors for their open positions.

Eason said contractors are especially popular in areas such as manufacturing, call centers and information technology.

Employment watchers attribute the hiring shift to two factors.

First, as the local economy recovered from the economic aftereffects of the terror attacks on Sept. 11, 2001, business orders spiked for many companies. That boost in demand for services has come amid a labor shortage -- the unemployment rate in Southern Nevada was 4.1 percent in June, numbers from the department of employment show.

"It's more difficult to find quality employees right now," Eason said. "It's easier to bring in contractors and eventually convert them to full-time if things go well."

Second, many business owners remain uncertain about the economy's future.

"After Sept. 11, most companies learned that a flexible staff is very important," Micone said. "If there's a shift in the market, companies can eliminate a certain percentage of their payroll the next day without repercussions. It's a philosophical change, with companies looking at (contract) employees as a way to fluctuate with the peaks and valleys of their business."

Adjusting to unexpected surges in work orders is partly behind interZnet's contracting strategy.

Nadler said the company frequently lands three- to six-month contracts that require a skills set missing from his existing staff roster. To compensate, he brings in an independent contractor to plug the gap temporarily -- a more "immediate" solution than seeking an employee, he said.

"It's the old hired-gun theory. Not everybody you have on staff will be great at all things," Nadler said. And using independents has an additional benefit: It can give interZnet an opportunity to see how a prospective full-timer might fit in.

"It's an entree into recruiting. It's a great way to sample and taste before we buy," Nadler said.

A more stable economic outlook probably won't reverse the uptick in contracting; Eason said he believes the change is permanent and independents will only increase as a percentage of all workers in the future.

"Organizations are hiring contractors for non-core functions, such as information systems and accounting, so they can focus full-time talent on their core areas," Eason said. And that could help the economy, he added: Companies that retain independent contractors "can be more efficient, and that makes them more competitive in a global environment."

Plus, many contractors like the freedom that comes with working for themselves. The federal Department of Labor reported that less than 10 percent of the independent contractors they polled said they would prefer full-time status. Workers like the flexibility -- employers can place few constraints on how, when and where a contractor does his job, as long as the task is completed -- and moving from company to company to take on different projects helps those in technical fields keep their skills updated, Micone said.

Even a lack of benefits isn't deterring workers who enjoy contract assignments. Eason said many companies offset sparse benefits with a higher base pay for contractors. Numbers from the U.S. Bureau of Labor Statistics show that independent contractors have median earnings of $716 a week, compared with $638 a week among full-time, salaried workers. Plus, more companies are providing perks such as health insurance and 401(k) retirement accounts to contractors, he said.

"It's like any job search -- you look for the company that does offer you the total package," Eason said.

Nadler advised caution for business owners as well. The primary pitfall that ensnares interZnet and other companies is, ironically, the work arrangement's biggest benefit: its impermanence.

"The very essence of their business model as independent contractors is to try to find the highest-paying gig," Nadler said. "Folks will come in for a six-month job and three months later they'll find one with better pay. Just make sure the contractor you hire has integrity, loyalty and a track record."