The reality of being your own boss
Young people who want to become self-employed for more money and free time might be in for a rude awakening
YOUNG people looking to selfemployment for high pay and plenty of leisure time are likely to be disappointed, new figures show.
A study by the Office for National Statistics has revealed that one in five 16-21 year olds say it is likely they will be self-employed at some point in the future.
The analysis shows that they see it as a route to a high income and time for family - with these factors more important to those who expect to be self-employed compared to those who don’t. However, further research shows that the reality of self-employment is a far cry from this expectation.
Around one in ten 22-30 year olds were self-employed in 2018 after leaving education - some 500,000 young adults across the UK.
The number has increased by a third since 2008.
But while many 16-21 year olds associate self-employment with a high income, the reality is that self-employed workers earn around £3,800 less per year, on average, than employees.
This is despite many of them working longer hours.
The young self-employed are three times as likely as employees to work over 45 hours per week.
The analysis is based on people who report themselves as self-employed in their main job.
Self-employment does not just include entrepreneurs - freelancers and contractors count, too. Self-employed workers are not paid through PAYE, and they do not have the same employment rights, or responsibilities, as employees.
Zero-hour contract workers do not count as self-employed, as they are employees without a guaranteed number of hours.
Regardless of age, men are more likely than women to be self-employed, but the disparity is greatest among young people.
Men aged 22-30 are twice as likely as women to work for themselves (12% compared with 6%).
This is largely explained by the male-dominated industries in which selfemployment is most common, such as construction.
Many builders, carpenters and other tradespeople have their own businesses. However, the gap between men and women in self-employment is closing, with the number of self-employed women increasing at more than twice the rate of men since 2008.
This is partly because of growth in part-time selfemployment - young, self employed women are four times more likely to be part-time as men. Women place a greater premium on flexible working than men, and they are more likely to become self-employed on that basis.