The Self-Employed Landscape 2024
Our report for 2024 provides a snapshot of how the sector’s size, demographics and economic impact have changed in the past year.
Executive Summary
- The solo self-employed contributed £366 billion to the UK economy in 2024, compared to £331bn in 2023
- The number of side hustles in the UK has increased by 20 per cent since 2023
- Working mums now account for 21 per cent of all side hustles
Despite the size of the sector remaining relatively stable since 2023, the economic contribution of the solo self-employed has increased from £331 billion in 2023 to £366 billion this year - driven by an increase to the overall turnover of single-person limited companies.
The report also reveals that the number of side hustles in the UK has increased by 20 per cent in the past year, with an additional 77,000 side hustles compared to our findings from 2023.
Interestingly, 21 per cent of all side hustles are undertaken by working mums (96,000), which is up by eight per cent since our findings from last year.
Introduction
If freelancer sentiment is anything to go by then the sector is still struggling with the impact of difficult economic conditions.
IPSE’s research shows that freelancers' confidence in their own businesses fell for the fourth successive quarter in Q3 2024, whilst their 12-month outlook for the wider economy also fell further into negative territory.[1]
We also know that reforms to IR35 - also known as the off-payroll working rules - are still having a significant impact on freelancers' ability to find work, with one in 10 contractors (10%) out of work due to the rules. Similarly, at the time of the survey in February 2024, freelancers were increasingly planning to seek contracts abroad to escape the hassle of the off-payroll working rules.[2]
Last year’s Self-Employed Landscape Report revealed that the contribution of the sector had increased from £278 billion in 2022 to £331 billion in 2023. In addition, the report also found that over two in five of the solo self-employed (42%) had been operating in this way for over ten years.
This report examines two subsets of the overall self-employment sector: the solo self-employed – those who are self-employed but do not employ others – and freelancers – those who are working in the top three highest skilled occupational categories (SOC1 to SOC3).[3] From analysis of the ONS’ Labour Force Survey (LFS) data from Q2 2024, the report also reviews demographic changes to the sector over the past year.
The UK's Solo Self-Employed
Who are they?
In this first section, we explore the UK’s solo self-employed population in more detail using data from the second quarter of the ONS’ Labour Force Survey in 2024, 2023 and 2008.
The solo self-employed are defined as individuals who are running their own business, operating as a sole trader or in a partnership and do not have any employees.
Following last year’s report that revealed a small increase in the number of solo self-employed – from 4.1 million to 4.2 million individuals – this year’s report again shows that 4.2 million individuals operate as solo self-employed in the UK, up by just 889 on the previous year.
Contribution
Due to an increase in the overall turnover of limited company businesses with no employees, the sector’s contribution to the UK economy has now increased by 11 per cent, from £331 billion in 2023 to £366 billion in 2024.
Our estimate of freelancers' contribution to the UK economy uses the UK government's business population estimates for the UK and regions for 2024, and the ONS’s Labour Force Survey for Q2 2024, and takes into account the total turnover of businesses with no employees.
Skill Profile
The skill profile of the UK’s solo self-employed is based on the Standard Occupational Classifications (SOCs), an internationally recognised system that classifies occupations according to the skill level required for them.[4] There are currently nine major levels of SOC codes ranging from managers, directors and senior officials at the top end to elementary occupations in SOC9, which generally require a minimum level of qualifications.
Interestingly, when looking at changes in the size of SOC groups within the solo self-employed population, a significant increase to SOC6 caring, leisure and other service occupations has offset decreases in other SOC groups.
SOC6 caring, leisure and other service occupations now holds an additional 89,000 solo self-employed individuals since last year – an increase of 29 per cent since 2023.
Meanwhile, SOC4 administrative and secretarial occupations have experienced the second biggest increase of all the occupational groups, growing by four per cent since 2023 – an increase of 40,000 individuals in the past year.
In addition, the SOC1 managerial freelancers category has also grown, increasing by two per cent since 2023, with 6,500 additional individuals now working in this occupational code.
SOC3 associate professional and technical occupations also experienced an increase, with an additional 16,000 individuals now operating in these occupations. This represents an increase of two per cent on our findings from 2023.
However, SOC8 process, plant and machine operatives have decreased by 38,000 since 2023, whilst the number of SOC7 sales and customer service occupations fell by 13,000 – both of which amount to 10% decreases within their respective groups.
Similarly, SOC9 elementary occupations have also seen a decrease, falling by eight per cent in the past 12 months, with 23,000 less individuals now operating in these occupations.
Finally, SOC5 skilled trades occupations have fallen by four per cent (40,000 less individuals) while SOC2 professional freelancers have remained relatively stable since 2023, falling by just 3,000 individuals.
Top Occupations
Within the nine major SOC groups, there are 90 minor occupational groups. Looking closely at these can give a more detailed understanding of the kinds of roles solo self-employed people are working in.
Similar to previous years, the highest proportion of the UK’s solo self-employed are working in the construction and building trades (334.000), with the total number working in this occupation decreasing by 15 per cent since 2023 (391,000). This follows a nine per cent increase between 2022 and 2023.
The next highest proportion of the UK’s solo self-employed are working in artistic, literary and media occupations (289,000) or as road transport drivers (274,000). Interestingly, artistic, literary and media occupations have seen an increase of six per cent in the past year (273,000) whilst road transport drivers have seen a two per cent decrease since 2023 (281,000).
The next highest proportion of the UK’s solo self-employed are working in agricultural and related trades (175,000), elementary cleaning occupations (130,000) and hairdressers and related services (124,000).
Gender
The gender distribution of the UK’s solo self-employed workforce remains uneven, with more men in solo self-employment than women. The overall solo self-employed population continues to be 61 per cent male and 39 per cent female.
Last year’s findings revealed that the population had swung in favour of men. This year, the gender distribution has remained the same.
Looking at the long-term trend reveals that the number of women has increased by 65 per cent since 2008, whilst the number of men has increased by 12 per cent over the same timeframe.
Working Mothers
There are now a total of 554,000 solo self-employed mothers, which represents an eight per cent decrease on our findings from 2023. For context, solo self-employed mothers represent around 13 per cent of all solo self-employed people.
Just over half of working mothers (52%) are now working in the top three highest skilled occupations (SOC1 to SOC3).
Looking at the long-term trend, the number of working mothers has increased by 46 per cent since 2008.
Self-employed mothers are now most likely to be working in SOC6 Sales and Customer Service Occupations (134,000), SOC2 professional occupations (129,000) and SOC3 associate professional and technical roles (114,000).
Interestingly, the number of solo self-employed mothers working in SOC6 Sales and Customer Service Occupations has increased by 27 per cent since 2023.
Age
The average age of the UK’s solo self-employed is now 48 years old, which represents a decrease of one year since our report in 2023 (49 years).
Similar to our reports for the past four years, the largest age groups in 2024 are 50-59 years (1,107,000) and 40-49 years (1,100,000). When taken together, these two groups account for exactly half (50%) of the whole solo self-employed workforce.
The age group that has seen the biggest growth since 2023 is those that are 40-49 years old, increasing by seven per cent in that time.
On the other hand, the 16-29 year olds have experienced the biggest decrease in the past year, falling by 10 per cent – equivalent to 48,000 solo self-employed individuals.
Side hustles
There are now 460,000 side hustles in the UK, up by 20 per cent since 2023 (383,000). Freelancers - those operating in the top three highest skilled SOC groups – now account for 305,000 of these side hustles, which represents a 16 per cent increase on our findings from last year (264,000).
Side hustles now comprise 11 per cent of all solo self-employment.
Interestingly, 21 per cent of all side hustles are undertaken by working mums (96,000), which is up by eight per cent since our findings from last year.
The UK's Freelance Workforce
Who are they?
Freelancers are a subsection of the solo self-employed population who are working in the top three highest skilled occupational categories (SOC1 to SOC3). This subsection includes highly skilled managers, directors, professionals and associate/technical professionals, including roles ranging from lawyers and accountants, to doctors and scientists, and writers and designers.
There are now a total of 2,046,000 freelancers operating in the UK, an increase of one per cent from 2023. The number of freelancers as a proportion of the overall self-employed population remains at 49 per cent for the second successive year.
Contribution
Research shows that freelancers play a vital role in the economy by enabling businesses to manage and reduce entrepreneurial risk, reducing the amount of finance required for innovation and business start-up, and ultimately promoting innovation, enterprise and growth.[5]
Whilst there are no official statistics directly measuring freelancers’ contribution to the economy, it is possible to provide a speculative estimate. If freelancers’ contribution to turnover is proportionate to their presence in the wider group of businesses without employees, their collective sales would be approximately £184 billion. This represents an increase of 20 per cent on our findings from 2023 (£161 billion) and would comprise 50 per cent of the £366 billion contributed by the UK’s wider solo self-employed workforce.
This figure could be even higher as freelancer-owned businesses may be expected to generate greater revenue than businesses in the lower-skilled occupational categories because of their level of knowledge and skill. Their contribution to the UK economy in 2024 could even be as high as £193 billion.
Skill profile
The largest group of freelancers, accounting for 853,000 individuals and 41 per cent of all freelancers, are those working in SOC2 professional occupations. This represents a 106 per cent increase in the number of solo self-employed individuals working within this SOC code since 2008.
SOC3 associate and professional freelancers have experienced a two per cent increase in the past 12 months, now accounting for 853,000 individuals (38% of all freelancers). This SOC code has experienced an increase of 26 per cent since 2008.
In addition, SOC1 managerial freelancers have also increased by two per cent over the past year, now accounting for 428,000 individuals (21% of all freelancers). This represents an increase of 19 per cent in the numbers operating in this SOC code since 2008.
Top Occupations
Looking across the occupational categories in more detail reveals that occupations across the sector have been affected in different ways over the past year.
The largest occupational group for freelancers remains those operating in artistic, literary and media occupations, which now accounts for 17 per cent of all freelancers (345,000). This represents an eight per cent increase on our findings from 2023 (318,000).
Functional managers and directors now represent the second largest occupational group, accounting for eight per cent of all freelancers (172,000). This occupational group has seen a 36 per cent increase in their overall numbers since last year (126,000).
Managers and proprietors in other services now account for seven per cent of all freelancers, with 149,000 individuals operating in these occupations.
In addition, teaching professionals now account for seven per cent of all freelancers (141,000), which represents an eight per cent decrease on our findings from last year's report (154,000).
Gender
The UK’s freelance population is now comprised of 56 per cent males and 44 per cent females, representing a two percentage point swing in favour of male freelancers since 2023. This represents a more even gender distribution than the overall UK solo self-employed population, which is 61 per cent male and 39 per cent female.
The number of highly skilled freelance men has increased by six per cent since 2023 – equivalent to 60,000 additional male freelancers. This follows a 10 per cent increase between 2022 and 2023.
Concerningly, despite increasing by 12 per cent between 2022 and 2023, the number of highly skilled freelance women has decreased by four per cent since 2023 – equivalent to 41,000 fewer female freelancers.
Male freelancers now comprise 62 per cent of all SOC1 managerial freelancers compared to 38 per cent of women whilst men now also account for 56 per cent of all SOC2 professional freelancers compared to 44 per cent of women.
Interestingly, when looking at SOC3 associate professional and technical freelancers, the gender distribution is slightly more even, with men comprising 52 per cent and women 48 per cent.
Working mothers
There are now 290,000 highly skilled freelance mothers in the UK, accounting for 14 per cent of the total freelancer population. Concerningly, this represents a decrease of 14 per cent on our findings from 2023 (336,000).
SOC3 associate professional and technical freelancers experienced the biggest decrease in their freelance mother population, with the number falling by 22 per cent since last year - equivalent to 32,000 fewer freelance mothers.
SOC2 professional freelancers also experienced a decrease in their population of freelance mothers, decreasing by 18 per cent since 2023 - equivalent to 28,000 fewer freelance mothers.
On the other hand, SOC1 managerial freelancers experienced a small increase in their numbers of freelancers mothers, increasing by seven per cent since 2023 - equivalent to an additional 3,000 freelance mothers operating in this occupational group.
Age
The largest age groups for freelancers are those aged between 50-59 (571,000) and 40-49 (487,000), with these age groups comprising 28 per cent and 24 per cent of all freelancers respectively. Combined, these age groups account for over half of all freelancers (51%).
Consequently, the average age of UK freelancers is 50 years old, which is the same as our findings from 2023.
Interestingly, the 16-29 age group experienced an increase of 13 per cent in the past year whilst the 60+ age group also increased by one per cent in the same time.
On the other hand, the 30-39 age group remained the same as our findings from 2023 whilst both the 40-49 age group and 50-59 age group decreased by one per cent in the past year.
Notably, since 2008, the number of 60+ year olds operating as freelancers has increased by 78 per cent.
Conclusion
With the research revealing an increase in the overall economic contribution of the solo self-employed and an increase in the number of over 40-49 year olds adopting this way of working, self-employment continues to appeal to those in the prime of their careers.
The rise in the number of side hustles in the UK should also be celebrated, with working mothers in particular benefiting from the flexibility and autonomy of this additional income stream.
With the overall number of people in solo self-employment remaining relatively stable since 2023, it remains to be seen whether the sector will enjoy more substantial growth in 2025 as hirers respond to the planned increase to the headline rate of Employer National Insurance contributions.
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