A new report has found that the rise in self-employment is due to freelancers and contractors rather than an increase in entrepreneurship. This comes after it was found the UK’s employment rate was being buoyed by the self-employed.

The findings from the Trades Union Congress report shows that 44% of jobs created since 2010 have been due to self-employment.

In contrast, the number of of those self-employed who actually have their own business has dropped by 52,000. The TUC claims that people are finding themselves in “insecure employment” as opposed to starting their own company.

The General Secretary of the TUC, Frances O’Grady, said: “Self-employment accounts for almost half of all the new jobs created under this government.

“But these newly self-employed workers are not the budding entrepreneurs ministers like to talk about. Only a tiny fraction run their own businesses, while the vast majority work for themselves or another employer – often with fewer rights, less pay and no job security.

“While some choose to be self-employed, many people are forced into it because there is no alternative work. The lack of a stable income and poor job security often associated with self-employment makes it hard for people to pay their bills, arrange childcare, plan holidays or even buy or rent a home.”

Chris Bryce, the CEO of PCG, had a different take and suggested the change is due to people choosing to work differently.

He said: “Not only do self-employed people actively stimulate economic growth, research shows their work also creates the permanent jobs which the TUC purports to be fighting for.

“The boom in self-employment is at the heart of the UK’s economic recovery and for the TUC to blame it for the problems experienced by vulnerable workers is misguided and unhelpful.”

Image from Yelkrokoyade.