Self-employment accounts for 44 per cent of the net rise in employment since mid- 2010, with pensioners, part-time workers and ‘odd-jobbers’ the fastest growing groups of Britain’s new self-employed workforce, the TUC says today, ahead of the latest employment figures published later this week.
The TUC analysis shows that despite self-employment being a relatively small part of the UK jobs market – just one in seven workers are self-employed – it has accounted for 44 per cent of all employment growth since the last election.
Workers aged 50 plus account for half the increase in self-employment, with self-employed workers aged 65 and over the fastest growing group in the labour market (increasing by 29 per cent since the end of 2010).
Over 40 per cent of all the self-employed jobs created since mid-2010 are also part-time. The TUC is concerned that many people are only taking this kind of work because they are unable to find good quality employee jobs which provide the stable employment they really want.
The TUC’s analysis also shows that the number of people starting their own businesses has fallen in recent years, in spite of rising self-employment. The biggest growth areas of self-employment since mid-2010 have been people working for themselves (up 232,000), freelancing (up 69,000) or sub-contracting (up 67,000).
The number of self-employed people who either run a business, or are a partner or sole director in one (positions usually associated with entrepreneurship) has actually fallen by 52,000. These figures show that rising self-employment is part of a wider shift towards insecure employment, rather than as a result of a growing number of people starting up new companies as ministers like to claim, says the TUC.
Self-employment has been going up steadily since early 2008, even when unemployment was rising sharply, and has increased even more in recent years.
The TUC is concerned that the growth of self-employment is at the expense of more secure employee jobs. Many newly self-employed workers do the same work as employees but with less job security, poorer working conditions and often less take-home pay, says the TUC.
Other forms of self-employment – for example selling goods online or registering as self-employed to do the occasional ‘oddjob’ – tend not to pay enough to make a decent living, says the TUC. Recent figures from Citizens Advice suggested that self-employed workers are as likely to have debt problems as unemployed people.
Self-employed workers also have no right to paid sick, holiday, maternity or paternity leave, redundancy pay or protection against unfair dismissal – a particular problem for self-employed workers who are sub-contracted to another employer.
The government is also planning to exempt most self-employed workers from vital health and safety protections in the Deregulation Bill currently making its way through way through Parliament.
Self-employed workers are often poorly paid, says the TUC. Recent Resolution Foundation research found that earnings from self-employment fell by a fifth between 2006 and 2010, while official figures published by Parliament found that the average annual income from self-employment is less than £10,000 for women.
The TUC is concerned that insecure work including self-employment, agency work and zero-hours contracts are becoming a permanent feature of the labour market, even as the economy recovers. The growth of casualised work is likely to continue to hold back wages, and prevent people from having the kind of secure employment they need to pay their bills, save money and plan for the future, warns the TUC.
TUC General Secretary Frances O’Grady said: “Self-employment accounts for almost half of all the new jobs created under this government.
“But these newly self-employed workers are not the budding entrepreneurs ministers like to talk about. Only a tiny fraction run their own businesses, while the vast majority work for themselves or another employer – often with fewer rights, less pay and no job security.
“While some choose to be self-employed, many people are forced into it because there is no alternative work. The lack of a stable income and poor job security often associated with self-employment makes it hard for people to pay their bills, arrange childcare, plan holidays or even buy or rent a home.
“The economy is finally back in recovery yet people’s wages are still shrinking and many are unable to find stable employment. Until we see decent pay rises and better job security, working people will continue to feel that the recovery is passing them by.”
Source – TUC, 14 April 2014
Two North-East towns have the highest youth unemployment in the country, a report claims.
Middlesbrough and Stockton were ranked top of a youth unemployment table prepared by The Work Foundation.
The Lancaster University-based organisation’s report, The Geography Of Youth Unemployment – A Route Map For Change, claims that unemployment rates for 16 to 24-year-olds in the two towns is more than 25 per cent.
In contrast, York was found to have the second lowest youth unemployment in the country at less than 13 per cent.
The study recommends that town and cities reduce their rates by ensuring that local services work together more effectively.
The paper argues that without effective, targeted action from national and local government, businesses, and educators, a generation of young people in these cities will face a bleak future in the labour market.
Commenting on the paper, Lizzie Crowley, head of youth unemployment programmes at The Work Foundation, said: “Urgent action is needed to ensure young people get the right support to either continue in school, further training or with getting a job.”
Commenting on the report, Stockton Council leader Councillor Bob Cook said it was a “nonsense that the youth unemployment rate in Stockton was the highest in the country”.
“That said, we know that the current economic climate has made it tough for young people to get a foothold on the career ladder.
“We are determined to help which is why our children and young people select committee is in the final stages of an in depth scrutiny review looking at how education and business can work together to make sure that learning provision matches local industry need.”
Source – Northern Echo 08 April 2014
Successive Government policies that unfairly target the young are making this the worst time to grow up in decades, campaigners say.
High levels of youth unemployment, increased university tuition fees and the difficulty of getting a mortgage have been cited as problems affecting young people, along with changes to the benefit system and cuts to youth support services.
People working with young people in the North East say they are being disproportionately targeted in the Government austerity cuts so that Ministers can protect older people who are statistically more likely to vote.
And there have been warnings that the situation is creating a “a generation without hope” who do not feel part of society.
Liz Emerson, co-founder of the Intergenerational Foundation, a national charity set up to ensure fairness between the generations, said: “This is the first period in recent history where children will have worst standards of living than their parents and their grandparents.
Successive Governments have put the interests of older generations before the interests of younger ones. They’ve taken away the EMA, they’ve taken away Sure Start schemes for young people, they’re taking away their travel concessions.”
Concerns about the young being unfairly targeted came earlier this month when Chancellor George Osborne signalled benefit cuts for the under-26s just a day after Prime Minister David Cameron said he would “triple lock” the state pension, which accounts for half of all welfare spending.
Jeff Hurst, who runs the Newcastle YMCA and is vice-chair of the city’s children’s trust board, said: “I was brought up in a generation where anything was possible and everything was positive. Now we are creating a generation without hope.
“What I see is fantastic young people who are motivated, who are clever, who are innovative who are able, but who are very frustrated.”
Mr Hurst said the combined effect of higher pension ages, more graduates, and a flood of axed public sector workers were squeezing the young out of the labour market until far into their twenties.
The situation is particularly acute in the North East, which has the highest rate of youth unemployment at nearly 24% and the worst score of any region on the Intergenerational Foundation’s age fairness index.
Geoff Mount of the charity Barnados, which has a number of youth projects in the region, said: “Times are tough for young people. Funding for courses is being cut, young people now are having to take out loans, and EMA has been taken away. We’ve got a bursary scheme in place but that doesn’t meet in my opinion the needs of those young people in greatest financial need. There are fewer job opportunities out there than ever before.”
Workers also cited a squeeze on housing, with last week’s ONS figures showing a quarter of 34-year-olds are now living with their parents.
The number of “boomerang children” has soared by 25% in the last 17 years, despite the youth population remaining the same, with under-24s in the North East the least likely in the country to have a mortgage.
Source – Newcastle Journal, 27 Jan 2014
An extremely interesting article originating from Durham University…
In this post, Lynne Friedliand Robert Stearnlook at the role of psychological coercion, notably through the imposition of positive affect, in UK Government workfare programmes. There has been little or no debate about the recruitment of psychology/psychologists into monitoring, modifying and/or punishing people who claim social security benefits. This silence raises important ethical questions, including about the relationship of psychology to the medical humanities.
Whistle while you work (for nothing): positive affect as coercive strategy
– the case of workfare 
The growth and influence of discourses of positive affect in systems of governance and ‘technologies of the self’ has been widely observed. ‘Strengths based discourse’ is a significant policy imperative in health and welfare reform and underpins ‘the application of behavioural science and psychology to public policy’ via the UK government’s Behavioural Insights Team (BIT) or ‘nudge unit’. Positive affect plays an important supporting…
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