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Self-employed worker numbers soar in UK Self-employed worker numbers soar in UK
(about 5 hours later)
The number of people becoming self-employed to earn a living has grown by 10% since the start of the economic downturn, official figures show, with more than half of them setting up on their own between 2011 and 2012.The number of people becoming self-employed to earn a living has grown by 10% since the start of the economic downturn, official figures show, with more than half of them setting up on their own between 2011 and 2012.
There are now 367,000 more people who are self-employed than there were in 2008, the Office of National Statistics said. More than 200,000, or 60% of these, became self-employed between 2011 and 2012. By contrast, the number of employees, which fell by 434,000 (2%) between 2008 and 2012, dropped mainly at the beginning of the period. There are now 367,000 more people who are self-employed than there were in 2008, the Office for National Statistics said. More than 200,000, or 60% of these, became self-employed between 2011 and 2012. By contrast, the number of employees, which fell by 434,000 (2%) between 2008 and 2012, dropped mainly at the beginning of the period.
That suggests some former employees may have decided to go self-employed after trying and failing to find work elsewhere.That suggests some former employees may have decided to go self-employed after trying and failing to find work elsewhere.
"There may be perfectly good reasons for being self-employed, but it would be naive to think that all these workers are really budding entrepreneurs," the TUC's general secretary Frances O'Grady said."There may be perfectly good reasons for being self-employed, but it would be naive to think that all these workers are really budding entrepreneurs," the TUC's general secretary Frances O'Grady said.
"These figures instead suggest that many employee roles are being replaced by self-employed positions. Bogus self-employment is bad news for staff as they miss out on vital rights at work, such as paid holidays and employer pension contributions, without having the advantage of being their own boss.""These figures instead suggest that many employee roles are being replaced by self-employed positions. Bogus self-employment is bad news for staff as they miss out on vital rights at work, such as paid holidays and employer pension contributions, without having the advantage of being their own boss."
O'Grady added: "Self-employment is normally a very small part of the workforce, so the fact it's been outstripping employee job growth shows that the UK labour market is far weaker than headlines suggest."O'Grady added: "Self-employment is normally a very small part of the workforce, so the fact it's been outstripping employee job growth shows that the UK labour market is far weaker than headlines suggest."
The average age of a self-employed worker is 47 – older than an employee where the average age is 40, according to official statistics. Much of the growth in self-employment has apparently been driven by "baby boomers", the generation aged 55 and above. Almost 20% of workers aged between 50 and 64 are self-employed, and 37% of those aged over 65.The average age of a self-employed worker is 47 – older than an employee where the average age is 40, according to official statistics. Much of the growth in self-employment has apparently been driven by "baby boomers", the generation aged 55 and above. Almost 20% of workers aged between 50 and 64 are self-employed, and 37% of those aged over 65.
Online freelance marketplace PeoplePerHour said it had also seen strong evidence of the baby boomer effect. It said there was an 88% increase in people aged 55 years and above registering on its website in the past 12 months.Online freelance marketplace PeoplePerHour said it had also seen strong evidence of the baby boomer effect. It said there was an 88% increase in people aged 55 years and above registering on its website in the past 12 months.
Founder Xenios Thrasyvoulou said he disagreed with the TUC's view that people were being forced into self-employment. "When we polled those who had gone self-employed in the last year, more than a third said the reason was to get a better work-life balance, and a quarter said it was to pursue a hobby or passion.Founder Xenios Thrasyvoulou said he disagreed with the TUC's view that people were being forced into self-employment. "When we polled those who had gone self-employed in the last year, more than a third said the reason was to get a better work-life balance, and a quarter said it was to pursue a hobby or passion.
"With unemployment steadily falling, the continued growth in self-employment is likely to be increasingly down to lifestyle choices like these, rather than desperation.""With unemployment steadily falling, the continued growth in self-employment is likely to be increasingly down to lifestyle choices like these, rather than desperation."
According to the ONS the four most common occupations for self-employment were taxi drivers, carpenters, plumbers and other construction trades, and farmers. It also said more than two-thirds of self-employed workers were men, compared to half of employees.According to the ONS the four most common occupations for self-employment were taxi drivers, carpenters, plumbers and other construction trades, and farmers. It also said more than two-thirds of self-employed workers were men, compared to half of employees.
An investigation earlier this week by the BBC revealed that some people on the government's welfare-to-work scheme were being encouraged by advisers into self-employment in order to get them off unemployment benefits and on to working tax credits instead.An investigation earlier this week by the BBC revealed that some people on the government's welfare-to-work scheme were being encouraged by advisers into self-employment in order to get them off unemployment benefits and on to working tax credits instead.
BBC radio's 5 live Investigates programme spoke to clients of six different advisers across Britain, who said they were encouraged to either pretend to be working for themselves or to set up businesses they did not consider viable.BBC radio's 5 live Investigates programme spoke to clients of six different advisers across Britain, who said they were encouraged to either pretend to be working for themselves or to set up businesses they did not consider viable.
Self-employment can be a catalyst for a spiralling debt problem, according to debt charity StepChange. It recently warned that self-employed workers are burdened with debt four times greater than those in full- or part-time employment. They are financially worse off every month, have higher mortgage debts, and significantly higher levels of other borrowing such as credit card debt, it said.Self-employment can be a catalyst for a spiralling debt problem, according to debt charity StepChange. It recently warned that self-employed workers are burdened with debt four times greater than those in full- or part-time employment. They are financially worse off every month, have higher mortgage debts, and significantly higher levels of other borrowing such as credit card debt, it said.