Self-employed ‘odd jobbers’ fill ranks

The current record numbers of self-employed people are due less to enterprise culture and more about ´odd-jobbers´ going it alone to avoid unemployment, a major survey has found.

Thats´s the assertion of a new report by the Chartered Institute of Personnel and Development (CIPD).

The report, The Rise in Self-Employment, based on official statistics, found: 



• By the spring of 2010 self-employment was higher than at the start of the recession in 2008 and by the autumn of 2011 had reached a record level of 4.14 million (14.2 percent of total employment). At the latter date, the level of self-employment was 0.3 million (+8 per cent) higher than in spring 2008, compared with a corresponding fall of 0.7 million (-3 percent) in the number of employees in work. 


• The additional self-employed since 2008 are unlike self-employed people as a whole in terms of gender, hours of work, occupation and sector of employment. 


• Although well over two thirds of self-employed people are men, women account for more than half (184,000, or 60 percent) of the net rise in self-employment since the start of the recession. 


• Whereas over two-thirds of self-employed people work more than 30 hours per week, almost 9 in 10 (88.8 percent) of the additional self-employed people since the start of the recession work less than 30 hours per week 


• Almost a quarter of the UK’s self-employed people work in construction but the number of self-employed construction workers is currently lower than in 2008. By contrast, sectors with relatively small shares of self-employment – notably education, information and communications, financial and insurance services and public administration, defence and social security - are among those which have seen the biggest proportional increases in self-employment in recent years. 


• Skilled trades-people – typified by ‘white van man’ - have the single largest share of self-employment (almost 30 percent) but account for less than one per cent of the net rise in self-employment since the start of the recession. People performing elementary (i.e. unskilled) occupations account for more than 20 percent of the net increase, with those in administrative and secretarial and personal services occupations also registering large proportional increases. 



Dr John Philpott, chief economic Adviser at the CIPD, said: “The typical self-employed person in Britain today remains a skilled tradesman, manager or professional working long hours on the job, but since the start of the recession the ranks of the self-employed have been swelled by people from a much wider array of backgrounds and occupations, including many ‘handy-men’ without skills, picking-up whatever bits and pieces of work are available.

"It’s good that these self-employed ‘odd jobbers’ are helping to keep the lid on unemployment in a very weak labour market, but their emergence hardly suggests a surge in genuine entrepreneurial zeal.

While some of these newly self-employed may make a long-term commitment to being their own boss, or at least gain the necessary experience to do so, it’s likely that most would take a job with an employer if only they could find one.”