More workers striking out on their own

self-employed : Working for yourself less lucrative than 20 years ago

The number of self-employed workers has shown a major increase over the past decade, but earnings have fallen by £60 a week, a new study shows.

Typical weekly pay grew steadily in the late 1990s and early 2000s – but fell in the wake of the financial crash, said the Resolution Foundation.

Earnings have recovered to around £240 a week, but the figure is 15% lower than in 1994 and £60 a week lower than in 2001/2, said the thinktank.

The number of self-employed workers is at a record 4.8 million, or one in seven of the workforce – but the research found a fall in the number of selfemployed business owners with staff.

“While the self-employed workforce is getting bigger, typical earnings are actually lower than they were 20 years ago,” said Adam Corlett, economic analyst at the Resolution Foundation.

“Prior to the financial crisis, this stagnation was as much about the changing nature of self-employed work, rather than individual rewards.

“But since the crisis, the returns to self-employment have fallen sharply even when measured on a like-for-like basis.

“Modern self-employment is less likely to involve very long working weeks, and today’s workers are far less likely to be business owners with staff of their own.

“While returns may have increased recently, many workers are still feeling the painful effects of the financial crisis.”

TUC general secretary Frances O’Grady said: “While some choose selfemployment, many are forced into it because there is no alternative work.

“Self-employment today too often means low pay and fewer rights at work.”

While some choose selfemployment, many are forced into it because there is no alternative work. FRANCES O’GRADY, TUC GENERAL SECRETARY