According to new research, many self-employed workers are not earning enough. In fact, two in five people were found to be employed in ‘bad jobs’ last year.
The study was conducted by the New Economics Foundation. Using data from the DWP Family Resources Survey and the ONS Labour Force Survey, it was found that 54% of self employed workers don’t earn enough to make up a decent and secure living wage.
In comparison, back in 2o11, 63% of the labour force had ‘good jobs’. However, by 2016, that number had dropped to 61%. Now, I know what you’re thinking, that’s only a 2% drop. But, what was discovered from these results was that the jobs in the UK’s labour market are getting worse over time or have flatlined.
With unemployment figures at an all time low, many would see this positively. However, the results have suggested far from this. Instead, it is believed that employment figures are actually being ‘propped up’ by the increasing number of self-employed people in the UK.
For many, this switch to self-employment will have likely been due to the freedom and flexibility it provided. Take a look at some of the best (and worst) things about being self employed here. However, the research has found that many struggle to even earn a decent living.
One of the New Economics Foundation researchers described: “The overall unemployment figures paint a far more rosy picture of the labour market than what we know to be the reality – an underpaid and insecure workforce stretched to the limits.”
“One in three people on zero hours contracts say they don’t have enough hours to provide for themselves.”
“And while some benefit from the flexibility of being self-employed, many don’t.”
“The rise in self-employment is hardly a cause for celebration when over half don’t earn enough to live a decent life.”
“It seems that good jobs were the sacrifice made to avoid the worst effects of unemployment during the recession.”
“But the situation for many is reaching crisis point.”
In fact, it has been suggested that self-employment is a con. The biggest one going in fact. Take a look at the full report on this here.
But what do you think of this? Is self-employment a con? Let us know what you think in the comments below.
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