Self-employment is steadily increasing, now at a record high of 4.8 million, with 1 in 7 workers currently listed as self-employed. However, a recent report conducted highlights that their earnings have fallen by £60 a week.
The new research by the Resolution Foundation shows that in 2014-2015, wages were on average £240 per week, compared to £300 per week in 1994-1995.
Adam Corlett, economic analyst at the Resolution Foundation, comments:
"While the self-employed workforce is getting bigger, typical earnings are actually lower than they were 20 years ago.
"For many people, self-employment brings a freedom that no employer can provide. But the growth of low pay and short hours, along with a summer of protest about conditions, means that it’s no surprise some workers in the 'gig economy' feel that self-employment is just a positive spin on precarious work."
There is much uncertainty on the issue, with some suggesting the availability of low paying jobs and the financial crisis being contributing factors. The proportion of self-employed business owners with their own staff has fallen to 15%, compared to 23% in 2000.
Both Uber and Deliveroo recently came under fire with their self-employed workers striking due to pay conditions and working hours. Uber ‘has 40,000 drivers in the UK, so the result could have a significant impact on its costs.’
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