The number of self-employed workers in the UK has fallen for the third consecutive quarter, according to the latest data from the Office for National Statistics (ONS).
There were 4.526 million active self-employed individuals in the three months to September, a fall of 174,000 on the previous quarter and just over half a million less than at the beginning of the year.
The Association of Independent Professionals and the Self-Employed (IPSE), a trade body, said that the contraction in self-employed workers due to the global health crisis may constitute a “long-term decline”.
Derek Cribb, the chief executive of IPSE, said: “The continuing drop in the number of self-employed in the UK shows that the glaring gaps in support are leading to long-term, avoidable decline in the sector. This is deeply concerning not only for the self-employed themselves, but also for the UK’s prospects in the coming recession.
“After the 2008 financial crisis, it was rising self-employed numbers that kept unemployment comparatively low – as uncertain employers looked for more flexible expertise instead of permanent employees. Now, this does not appear to be happening and the self-employed sector is in precipitous decline. Some self-employed are finding their way into full-time roles, but many others are joining the record flow into unemployment.
“Government must work quickly to stem this flow by urgently getting support to the left-behind self-employed groups. Extending support would be a cost now, yes, but it would be a temporary cost during the pandemic, to hold back an even worse unemployment problem later.”
