How working life has changed during the downturn

Figures released on Wednesday by the Office for National Statistics show that unemployment has continued to increase during the downturn, rising to 2.67 million. This is a jobless rate of 8.4 per cent, the worst for 16 years.

The victims of unemployment are obviously those without jobs, but a fifth of people in work are looking for another job and most are extremely pessimistic about finding one.

There are now 7.87 million people in part-time work, a rise of 71,000 over three months. Of these part timers, 5.86 million are women and 2.01 million men. The number of part-timers has risen from 7.5 million at the beginning of 2008.

Of those working part-time, the number doing so because they cannot find full-time work has risen by 83,000, to reach a record 1.35 million.

Although in recent months, self-employment has fallen slightly, the overall trend is upwards. While there was a dip of 10,000 from September to December 2011, there are 4.08 million people in self-employment today, compared with 3.85 million at the beginning of 2008.

‘Cyclical phenomenon’

Dr John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development (CIPD), believes the rise in part-time employment will level off when the economy begins to grow:

“I think it will be around until we get a decent improvement in the labour market, but I don’t see it as a structural phenomenon,” he told Channel 4 News. “I see it as more of a cyclical phenomenon that will change when the economy improves.”

Dr Philpott said that the rise in self-employment mirrored what happened during the 1980s recession. “There was a leap in self-employment that plateaued, but didn’t fall back. It’s possible we might see something of that kind this time. It’s not an indication of renewed entrepreneurial zeal, more a sign of desperation.”

Read more: UK economy likely to 'zig zag', predicts Sir Mervyn King

Who are the self-employed?

A study published by the CIPD in January found that “the bulk of those at present taking the self-employed route to work are part-time odd jobbers desperate to avoid unemployment”.

Although more than two-thirds of self-employed people are men, women account for more than half the net increase in self-employment since the start of the 2008-09 recession.

While almost a quarter of the self-employed work in construction, the biggest proportional rises in self-employment in recent years have been in: education, information and communications, financial and insurance services, public administration, defence and social security. These are all sectors that traditionally have small shares of self-employment.

Skilled tradespeople – “typified by white van man,” according to the CPID – make up the largest single share of self-employed people (30 per cent). But their numbers are not growing rapidly – they account for less than 1 per cent of the net rise in self-employment, whereas those doing unskilled jobs make up more than 20 per cent of the increase.

Stuck in their current jobs

The CIPD comissioned the pollsters YouGov to survey 2,000 employees in December and January. YouGov found that 21 per cent of employees were looking for a new job with a different employer.

Those most likely to be looking were 25 to 34-year-olds (32 per cent), although the numbers doing so had fallen. The number of 18 to 24-year-olds seeking new opportunities had fallen significantly from 48 per cent to 27 per cent. People over 55 were least likely to be looking for a new job – just 11 per cent of them, down from 13 per cent.

YouGov also found that people were gloomy about finding another job if they were made redundant . Only 10 per cent of employees thought they would find it easy or very easy to do so, while 67 per cent said it would be difficult or very difficult.