Self-employment statistics

One in ten of the working population was self-employed in spring 2002, with the highest concentrations among the over-35s, according to one of the findings of an article on self-employment in Labour Market Trends.

Self-employment grew strongly between 1986 and 1990 (up from 6.3 per cent of adults to 7.9 per cent). Between 1992 and 2002 it remained broadly stable, standing at 6.8 per cent in spring 2002. Much of the small decline that took place in recent years followed changes in the construction industry, where workers reclassified themselves as employees due to an Inland Revenue decision. The most recent data suggest that self-employment may be increasing once again.

The Government's report from the Office for National Statistics shows that self-employment is strongly linked with age. The rate is lowest among

16 to 20-year-olds (about one per cent of the economically active of that age), and rises sharply to between 10 and 15 per cent for those aged between 36 and 60.

It then increases strongly again to over 30 per cent for 66 to 70-year-olds. The report says that this suggests the self-employed are either less likely to retire at the same age as employees, or that they have become self-employed after retiring from employee jobs.

Although women now make up nearly half the workforce, they formed a much smaller proportion of the self-employed: only 26 per cent in

2002. Self-employed women tended to be 'better educated' than female employees - 56 per cent in 2002 had qualifications at A-level or above, compared with only 46 per cent of women employees. By contrast, there is little difference in education between male employees and men who are self-employed.

Industries with the highest self-employment rates were construction

(22 per cent), real estate, renting and business activities (18 per cent) and wholesale, retail and motor trades (14 per cent). Skilled workers made up the highest proportion (30 per cent), followed by managers and senior officials (14 per cent).

For more information see: Labour Market Trends Volume 111 No 9.