"In reality two thirds of the jobs created since the crash are self employed." (42:30)Putting aside the overtly political intentions of the show and the one-sided argument put forward, the facts don't support that statement and the entire segment of the show predicated on it.
If we look at the ONS data for the quarter in which employment hit its lowest point during the recession (Jan-Mar 2010) and compare it with the latest data (Aug-Oct 2014), we see that in fact 1.7 million more people are in work today than in March 2010, of which 1.2m of those, two thirds, are in employee jobs. Just 32% of new jobs since the downturn are self employed.
In fact, between March 2010 and October 2014:
- There are 1,783,000 more people in work
- Unemployment has fallen by 568,000
- There are 1,185,000 more company employees, 82% of which are Full Time
- Self Employment has risen by 581,000
|Change in employment types Jan-Mar 10 -Aug-Oct 14|
Taking Mr Peretti's assumption, the key question is whether self employment is driving changes in the jobs market rather than economic growth leading to more genuine jobs. As I've shown above that is not the case - 66% of new jobs since the recession are employee jobs, and 82% of those are full time.
If we look further at self employment as a percentage of the workforce, the recent increases in self employment is the continuation of a trend that started in 2001. In late 2001, self employment in the UK hit a historic low of 11.8% of the workforce. Looking just 6 years previous, in 1995 the self employed made up 13.9% of the workforce. Today that figure 14.7%.
An entrepreneurial society should welcome genuine increases in self employment. There is a challenge that only 55% of those self employed are full-time, but we have no indication of how many of those are part time through choice. With many finding appeal in the idea of a 'portfolio career' and the latest cohort to join the jobs market being the most entrepreneurial generation. a boom in self employment should be celebrated, not misrepresented.
Back to school time for Mr Peretti and the BBC.