Sharp Drop in Self-Employed Numbers Marks First Decline in Over a Decade

The drop has been linked to stricter enforcement of labor rules targeting fake self-employment—where individuals are hired as freelancers to perform tasks that should legally fall under employee contracts. This enforcement began at the start of the year. However, reports this April indicated that the decline began to stabilize.

Shift from Freelancing to Flexible and Permanent Work

About 60 percent of those who left self-employment did not exit the workforce entirely. Instead, many transitioned to flexible employment. In the first quarter, around 47,000 individuals who previously worked mostly as freelancers took on flexible job contracts—nearly twice as many as in the prior quarter. Additionally, 12,000 self-employed workers moved into permanent jobs, also double the previous figure.

Sectors Hit Hardest by the Drop

Most job sectors experienced changes in self-employment numbers, with technical professions like construction seeing the highest percentage shifts. In absolute numbers, the largest decreases occurred in:

1. Commercial professions: down 16,000, mainly sales-related roles

2. Healthcare and welfare: down 14,000, affecting roles such as social workers and medical specialists

3. Service professions: down 12,000, particularly among hospitality workers and cleaners

This significant shift in the labour landscape reflects broader changes in employment practices and enforcement policies across various sectors.

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