In 2014 there were 4.6m self-employed people in the UK accounting for 15% of people in work. It is highest percentage it has been at any point in the last 40 years. There were also 356,000 employees who had a second job in which they were self-employed.
The rise in total employment since 2008 has been among the self-employed. It is largely due to fewer people leaving self-employment than in the past. Self-employed people tend to be older than employees. Self-employment among the over 65s has more than doubled in the past 5 years to reach nearly half a million.
Average median income from self-employment has fallen by 22% since 2008-9. In 2012-13 average median income from self-employment was £207 according to the Family Resource Survey. It should be noted that household surveys tend to underestimate income from self-employment. Income figures also include individuals who made a loss whereas employed people do not get paid a negative figure. Self-employed people do not get the same benefits as employed people in terms of sick pay, paid leave or maternity pay.
London had the highest concentration of self-employed people at 17.3% followed by the south west on 16.6% and the south east at 15.8%. The north east had the lowest concentration at 10.8%.
Across Europe the country with the highest rate of self-employment was Greece with 32%. Italy came next with 23.6% and Romania with 20.4%. The high figure for Greece is partly because of the high proportion of people self-employed in agriculture and the effects of tourism. The lowest rates were in Luxembourg with 8.1%, Denmark with 9% and Estonia with 9.4%. The EU average self-employment rate was 15.2% very close to the 15% in the UK. The UK has seen the third largest percentage rise in self-employment since 2009 at 19% behind Slovenia at 23% and Estonia at 20%. These countries are small in comparison and the average percentage change in the EU as a whole was -0.1%.