A new report has revealed that self-employed workers in the UK have seen earnings steadily fall since the financial crisis in 2007-08.
Research published by the Resolution Foundation shows that earnings have fallen by around £60 per week since 2001-02, but that the number of people now registered as self-employed has increased by 45% in the same period.
Despite a recovery in self-employed earnings last year, the organisation revealed that average earnings are now £240 per week – 15% lower than what the same group of people were earning in 1994-95.
Adam Corlett, Economic Analyst at the Resolution Foundation, commented: “While returns may have increased recently, many workers are still feeling the painful effects of the financial crisis.”
He added that the type of people classified as self-employed has also changed in the past 20 years, with current workers “far less likely to be business owners with staff of their own”.
A report by the Social Market Foundation examining the issues facing low-paid self-employed workers suggests that the only way for some to get out of their current situation is to move into a different line of work or find work as an employee, with those who become employed twice as likely to escape low pay than those who don’t.
For those looking for a change in career path, elearning courses could be the way forward, providing a flexible way to study and develop new skills that can be used to either find employment or remain self-employed but move into a different sector.