Growth in self employment

Self-employment increased by nine per cent in the 12 months to September 2003, according to an article in December's Labour Market Trends with the banking, finance and insurance industry responsible for 120,000 of the total increase of 282,000.

Over the last ten years the total change in self-employment is small in comparison with the rise in employees. However, it is claimed to be significant because it seems to have accounted for most of the rise in total employment in the past year - a period over which the number of employees was effectively unchanged in percentage terms.

The recent increases in self-employment are evident in both full-time and part-time working, with men accounting for most of the increase in full-timers and women for part-time self-employment.

Of the 120,000 increase in the banking, finance and insurance industry, the majority (114,000) were in real estate, renting and business activities, which includes tax, business and management consultancies, accountancy, auditing and others. The increases in this industry were greatest in London and the South East (37,000 and 25,000 respectively).

The article concludes that the increase in self-employment among financial and investment analysts and advisers broadly seems to support media stories about City job losses leading to people moving into self-employment.

However, self-employment has been increasing in a broad range of occupations, from IT through accountants to taxi drivers.

Occupations which saw increases included full-time men in IT strategy and planning; full-time male solicitors, lawyers and accountants; full-time male carpenters and bricklayers; and full-time and part-time male taxi drivers and chauffeurs.