Recession 'boosts self-employment'

The number of self-employed people in the UK has increased by nearly 10% since the start of the economic crisis, a report has found.

The Office for National Statistics (ONS) said 367,000 more people were self-employed in 2012 compared with 2008 when the crisis began.

Over the same time period, the number employed by others fell, the data shows.

Self-employed people were also found to work longer hours than employees.

The most common self-employed occupations are taxi drivers, farmers and construction workers.

Union representatives said the figures suggested the UK labour market was "far weaker" than thought.

"The recent rise in job levels is being driven by self-employed, part-time and temporary jobs, rather than the full-time, permanent work that many people want and need," said Frances O'Grady, secretary general of the TUC.

"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."

Self-employment represents 14% of the 29.4 million in employment in the UK.

Over 50's lead the way

Newsnight looked at the subject of self employment

igures from the Office of National Statistics have confirmed that more people are self employed today than at any time since the start of the recession.

The number of workers who are self-employed in their main job rose 367,000 between 2008, the start of the economic downturn, and 2012.

The most popular occupations for self-employment are taxi or cab drivers (166,000), 'other construction trades' jobs (161,000), carpenters and joiners (140,000) and farmers (123,000). They're also more likely to be male and older - averaging at 47 years old, compared to 40 for employees.

Some 58% of self-employed people used their home for work purposes to some extent, either working there (15%), using it as a base (38%) or working on the same grounds or building as their home (5%).

The biggest increase has come since 2011 - of the 367,000 increase in self-employment, 60% moved into self employment between 2011 and 2012. By contrast, the number of employees, which fell 434,000 between 2008 and 2012, dropped mainly at the beginning of the period, with a drop of 600,000 between 2008 and 2009, and a partial recovery since 2010.

The rise in self employed people occurred across the UK, with the exception of Northern Ireland, which saw a decrease. The ONS's report also shows self-employed people work longer hours than regular employees – on average 38 hours a week compared with 36 for employees.

Most self employed people live in London (18%), followed by the south west (16%), while the lowest proportion was in the north east (11%), followed by Scotland and Yorkshire and the Humber (both 12%).

A full run down of the statistics can be seen in the video above and the infographic below

ONS figures