IPSE warns over slowing self-employment growth



IPSE has responded to today’s labour market statistics showing that self-employment growth may be beginning to slow down.

The new figures released by the ONS today show that there are now 32.2 million people in work – 415,000 more than this time last year. However, the growth in employment has come from employees rather than people choosing to go self-employed. This month, the level of self-employment remained the same: 15 per cent of the workforce (a total of approximately 4.77 million people).

Tom Purvis, IPSE’s Economic Policy Advisor, commented: “The slowdown in the growth of self-employment should ring alarm bells for the Government. It should be especially concerning given the recent news about the importance of the service sector – which has a strong self-employed presence – to the UK’s productivity. If the Government wants the service sector-driven growth in productivity to continue, it should focus its efforts on creating a supportive environment for the self-employed.

“Self-employed people are facing many challenges at the moment, not least because of problems with Universal Credit. This flawed system is leaving self-employed people up to £3,000 a year worse off than employees earning the same money. This is just one of the areas where the Government should be striving to create a better environment for the self-employed. To this end, IPSE has already offered the Government inquiry into Universal Credit ideas for making the system fairer for people who work for themselves.”


 

Meet the author

IPSE
IPSE is the leading association for contractors, consultants, interims, freelancers and the self-employed. We strive to bring our members the most comprehensive and useful range of information and services and all the latest news about what affects your business.