IPSE warns of “brittle workforce” after “disproportionate and disturbing” self-employed slump

IPSE (the Association of Independent Professionals and the Self-Employed) has today warned that a “disproportionate and disturbing” drop in the number of self-employed will lead to a “brittle workforce” just when, going into a recession, it needs to be at its most agile. The comments came after the ONS survey revealed the number of self-employed fell by a record 238,000 in the second quarter of 2020.

IPSE has said the drop in self-employment is “almost certainly” because of gaps in self-employed support during the coronavirus crisis compared to the more comprehensive employee support. It also reported in its most recent Confidence Index that self-employed quarterly incomes have dropped by 25 per cent after a record fall in the amount of work they are able to secure.

Derek Cribb, CEO of IPSE (the Association of Independent Professionals and the Self-Employed), said: “In the second quarter of 2020, there was a disproportionate and disturbing slump in the number of self-employed in the UK – far more than among employees. This is almost certainly because of the serious gaps in the government support for the self-employed, including directors of limited companies and also the newly self-employed, who are at the most fragile stage of their careers.

“Going into a recession, we would normally expect a jump not a slump in the number of self-employed, as businesses look to the flexible expertise they offer. However, with government policy driving down the number of self-employed, there is a real fear the UK workforce will become brittle and rigid just when it needs to be at its most agile.”

For more information on the IPSE, you can visit their website here

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