The government published new data on the income of the self employed, employed and pensioners last week. The information was by constituency; I have, to make it manageable, made it regional, and to give you a chance of reading it taken out pension data and information on tax paid (although the whole regional table is at the bottom if you want to look at it: click to make it bigger):
I sorted the data on total median income.
This data could withstand a lot of scrutiny but let's just touch on the obvious. First, median self employed income is on average (and it varies little) half of median employed income. There are three options: the self employed don't declare half their income, or this differential is fact, or something between the two.
Second, the mean income of the self employed in London (those many politicians will meet) is 82% of mean income. This is totally aberrant compared to the rest of the UK as a ratio and by amount. In some constituencies that mean is over £80,000 income. The result is politicians think the self-employed are having a great time.
Actually, all those new self employed jobs are worse than poverty income for most.
This is deeply troubling.
There's more on this issue here.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
I presume this is yearly income and doesn’t factor in hours worked? Is it possible that (the new) self employed people are working flexibly and fewer hours than the employed? I’d expect it’s the opposite thought: they’re working longer and less sociable hours.
Yearly, yes
As likely to be as many employed part timers as self employed
I think your conclusion right
Is there any data on how many of the ‘new’ self-employments are hobby businesses for ‘extra pocket money’ in addition to employments? Would tend to naturally drag the median below the mean; while there are major issues re (false)self-employment etc and exploitation of those at lower end of earning scale, the hobby business thing would need to be stripped out before relying on the data to extrapolate to ‘household poverty’.
Read my work on this issue, linked at the end
It would be interesting to know the number ‘pushed’ of JSA/ESA into self ’employment’ (largely to escape punitive sanctions and the fear of them) but who earn next to nothing (or nothing) and rely on income support/housing benefit never the less.
I’m self-employed, and have been for almost exactly two years. During that time I’ve struggled from month to month and I’ve yet to reach the median point there so I can completely believe that it’s very difficult for small businesses to get off the ground. It’s compounded by the banks unwillingness to assist micro-businesses, and Government’s complete disinterest in small business.
Good luck
Even more interesting:
http://flipchartfairytales.wordpress.com/2014/02/26/america-not-a-small-business-country/
http://flipchartfairytales.wordpress.com/2014/02/25/will-the-shift-to-self-employment-change-our-politics/