Half A Million And Counting...where The Unemployed Actually Go

[Bloo Loo]

http://www.centreforentrepreneurs.org/news/15-press-releases/535-half-a-million-and-counting-uk-hits-start-up-record

StartUp Britain figures released today have recorded close to 500,000 new businesses already created in 2014 - a new record.

Statistics from the national enterprise campaign (run by the Centre for Entrepreneurs think tank), show 498,176 businesses have, to date, been started this year – a full month earlier than the same count was reached in 2013 (which hit the half million mark in mid-December).

The accelerated start-up rate this year makes it possible the UK will achieve a new record of 550,000 new businesses started in 2014.

Matt Smith, director of the Centre for Entrepreneurs said:

“This is fantastic news and shows that the entrepreneurial spirit within Britain continues to grow.

We have the third lowest startup costs in the world, we’re ranked eighth in the world for the ease of doing business and we have the fastest growing economy in the G7 - all of which proves that there is no better time or place to start a business.”

The figures come direct from StartUp Britain’s “StartUp Tracker”, an online tool which reveals the number of businesses registered with Companies House on a daily, monthly and yearly basis.

Notes

526,446 businesses were started in 2013. The half million point was reached on 13th December 2013. 484,224 businesses were started in 2012.

[winkie]

Create the policies generate the behaviours..... Looks good on paper, sole trader, Ltd....

[Blod]

Wow, that's a lot of Big Issue sellers.

[olde guto]

Good way of getting tax relief on some living expenses as well if you work from home.

http://www.taxdonut.co.uk/tax/tax-self-assessment/home-expenses-to-claim-when-you-re-self-employed-faqs-

[Snugglybear]

Wow, that's a lot of Big Issue sellers.

The median income from self-employment was £207 per week in 2012/13.

Considering that 32.3% of those in self employment are "Managers, Directors and Senior Officials" and "Proffesional Occupations" and another 14.8% are in "Associate Professional Occupations", and therefore one imagines getting a fairly good income, what are the people at the bottom of the scale getting?

It is perhaps telling that the average median income from self-employment has fallen by 22% since 2009/09, the period in which the rise in self employment has been trumpeted as a huge success.

BTW, since only 2.3% are in "Sales and Customer Service Occupations", not that many of them can be Big Issue sellers.

[council dweller]

Another way to escape unemployment is to get on ESA.

In my area unemployment is so low (due to bullying presumably!) that JC staff are being switched to ESA customers......a total waste of time if you ask me.

[durhamborn]

The median income from self-employment was £207 per week in 2012/13.

Considering that 32.3% of those in self employment are "Managers, Directors and Senior Officials" and "Proffesional Occupations" and another 14.8% are in "Associate Professional Occupations", and therefore one imagines getting a fairly good income, what are the people at the bottom of the scale getting?

It is perhaps telling that the average median income from self-employment has fallen by 22% since 2009/09, the period in which the rise in self employment has been trumpeted as a huge success.

BTW, since only 2.3% are in "Sales and Customer Service Occupations", not that many of them can be Big Issue sellers.

I can tell you what most of those people are getting/earning.£120 a week.Why?.Because thats where tax credits start to be means tested away.In the UK unless your earning or your business is earning between £18k for single person or £40k for a family with two children £120 a week is the amount to make.Flogging on to make more only gets you very small amounts.

My brother has pretty bad learning difficulties and worked at Remploy until it was closed.Since it closed he has applied for over 500 jobs, but has very little hope of getting anything.Even if he did it would probably last a week.The only help he has had from the DWP was to send him to a course to encourage him to go self employed.He cant even pay a bill himself.Several on the course took the bait to get out of signing on and the bullying.One,dog walker.Another gardener.Both have one or two customers.Their parents,relations.Both earn £20-£30 a week.Both are on tax credits now.Both are off the unemployed figures.Both are really still unemployed.

The jobs market and conditions at the bottom end of the market are horrific.The only slight escape for people is to go self employed.

[silver surfer]

I can tell you what most of those people are getting/earning.£120 a week.Why?.Because thats where tax credits start to be means tested away.In the UK unless your earning or your business is earning between £18k for single person or £40k for a family with two children £120 a week is the amount to make.Flogging on to make more only gets you very small amounts.

My brother has pretty bad learning difficulties and worked at Remploy until it was closed.Since it closed he has applied for over 500 jobs, but has very little hope of getting anything.Even if he did it would probably last a week.The only help he has had from the DWP was to send him to a course to encourage him to go self employed.He cant even pay a bill himself.Several on the course took the bait to get out of signing on and the bullying.One,dog walker.Another gardener.Both have one or two customers.Their parents,relations.Both earn £20-£30 a week.Both are on tax credits now.Both are off the unemployed figures.Both are really still unemployed.

The jobs market and conditions at the bottom end of the market are horrific.The only slight escape for people is to go self employed.

Sobering. Good post.

[durhamborn]

Another way to escape unemployment is to get on ESA.

In my area unemployment is so low (due to bullying presumably!) that JC staff are being switched to ESA customers......a total waste of time if you ask me.

Nail on head.Its the bullying.Once on JSA the first thing anyone needs to do is find a way to get on ESA or self employed tax credits.Looking for work has to take a back seat.That has to wait.The bullying is so bad that its crucial to get off signing on as quickly as possible.

ESA claims are shooting up because of this.Plus the backlog is so big people arent being seen for 6-10 months.Its supposed to be 12 weeks maximum.If refused ESA after this 10 months you appeal.No appeals are being sorted out.So you could claim ESA for at least 18 months+ fully fit until you are kicked off it.

Go self employed 6 months then reclaim ESA and repeat.

This is what people are doing.Not because they dont want a job.Because they do want one but need to avoid the Jobcentre abuse.

[LiveinHope]

Everything has been thrown at massaging unemployment figures for at least 15 years, maybe longer if I think about it.

50% going to University

Part-time work

Zero hours contracts

Self employment

[byron78]

I can't blame folk for doing this.

I know most will.

Having been unemployed in an area with few job prospects I went down the tax credit route myself initially. It really was the only way to avoid sanctions and stay alive (because I really did look for work and there really wasn't anything for me given my age etc). I got £40 a week, £20 less than my JSA, and I lived on beans, noodles, and basic bread for a few years until I (quite flukily) started to do well.

I still think benefit culture is a symptom and not a cause in many areas of the UK. Any 40hr minimum wage job would have earned twice what my JSA and HB got me when out of work and I would have jumped at the chance. There just weren't any employers who wanted a 50+ person for £6 and hour when they could employ one of the many kids also out of work for a lot less than that. Actual proper work was ridiculously thin on the ground. Even Tesco and other big employers changed to only offering shift work with no guaranteed hours etc when I was desperately looking. As far as I can tell it's got even worse since zero hour contracts have become the norm.

Edited November 16, 2014 by byron78

[billybong]

At one time a large amount of people would be taken in by such statistics but these days those in that large amount are those statistics (or know people affected by the statistics) so the news isn't as persuasive and convincing as it used to be. In fact in many ways it comes across as a bit delusional.

[Dorkins]

Everything has been thrown at massaging unemployment figures for at least 15 years, maybe longer if I think about it.

50% going to University

Part-time work

Zero hours contracts

Self employment

Definitely goes back further, in the 1980s the government managed to park a million or two on incapacity benefit.

[winkie]

Sobering. Good post.

That is the reality of what is really going on out there....

[billybong]

Everything has been thrown at massaging unemployment figures for at least 15 years, maybe longer if I think about it.

50% going to University

Part-time work

Zero hours contracts

Self employment

Another item - from ONS

There were 8.78 million economically inactive people (those out of work but not seeking or available to work) aged from 16 to 64. This was 67,000 fewer than for December 2013 to February 2014 and 258,000 fewer than a year earlier.

Totaling it all up it's quite easy to arrive at a figure of about 30/40% effective unemployment for those of the working age population (16 - 64).

Edited November 16, 2014 by billybong

[LiveinHope]

Another item - from ONS

The self employed NIC rate is another reason to become self-employed I suspect.

Everyone is just getting cleverer at 'existing'

The responsibility of any manager (substitute prime minister) is to make tomorrow a better day for their employees (citizens), to make sure that those under them always move forwards. Hmmm.

Edited November 16, 2014 by LiveinHope

[Saving For a Space Ship]

I agree with everything said, grim & matrix-like as it is.

Having a closer look at the org with the headline "Tractor production Self-employment is up comrade" from this org, The Centre for Entrepreneurs think tank / StartUp UpCreek Britain from their own web pages

http://www.centreforentrepreneurs.org/about/team

Luke Johnson

Chairman

Luke Johnson is the Chairman of private equity house Risk Capital Partners LLP, Chairman and part-owner of Patisserie Valerie, Chairman of StartUp Britain and long-term Financial Times columnist.

http://www.centreforentrepreneurs.org/about/team Sian is a Non-Executive Director of the JP Morgan Income and Capital Trust plc....

Robert Kelsey Deputy Chair

Robert Kelsey is the bestselling author of the ‘What’s Stopping You’ series of self-help books, a former City banker and owner/CEO of financial PR firm Moorgate Communications. Robert is former CEO of start-up incubator Metrocube and director of the City Fringe Partnership.

So , its PE, Banking, media & Pr related people from other members profiles. One has an expensive spectacle selling business.

Sounds like a Gov preferred spin dept

Self Employed ? .... Only We Know!

Edited November 16, 2014 by Saving For a Space Ship

[billybong]

and of course it bears repeating it's another feel good news item with the Rochester and Strood by-election next Thursday.

[council dweller]

"everyone`s getting better at existing"!

Thanks for that "Live in Hope"!

I try to organise my life with various "stop lines" built in.( If this doesn`t work try this....and if that doesn't work try that etc etc.)

OK I`m only existing (I`m on ESA) but really I live a simple rich life.

I feel sorry for those who can`t make it though.....

Edited November 16, 2014 by council dweller

[Snugglybear]

The self employed NIC rate is another reason to become self-employed I suspect.

Everyone is just getting cleverer at 'existing'

The responsibility of any manager (substitute prime minister) is to make tomorrow a better day for their employees (citizens), to make sure that those under them always move forwards. Hmmm.

The politicians are just trying to keep a lid on things whilst crossing their fingers and hoping that Something Will Turn Up.

[@contradevian]

The politicians are just trying to keep a lid on things whilst crossing their fingers and hoping that Something Will Turn Up.

I think they need to start addressing, because in the next ten years anyone who is a cashier or has any kind of driving job is likely to end up a lay about feckless scrounger, as automation gradually takes over. My local MacDonalds recently had a makeover, and now resembles an Argos with its ordering terminals. Only a matter of time before its all fully automated.

Still the Tory's are trying to apply 19th century economics to a modern semi automated 21st century economic, even though the 19th century economists were warning about land ownership and its disproportionate take on productive income, only for it to be all ignored as the Tory;s pander to rentiers.

What stood out for me was the 'economic inactive.' People have just given up. A few years ago considered doing courses for the local Business Chamber and many of the male unemployed, had quite successful wives, so I guess these types just gradually disappear from the statistics (if bullied enough and if the mortgage was paid off)

Many had had managerial, professional careers but were increasingly being treated like twits by the Jobcentre. They didn't need work training. They had been working years already, quite often longer careers than the so called JCP staff. Many were desperate not to have another spell shelf stacking in Poundland, or doing Ebay listings for charities.

Edited November 16, 2014 by aSecureTenant

[Snugglybear]

<snip> I can tell you what most of those people are getting/earning.£120 a week.Why?.Because thats where tax credits start to be means tested away.In the UK unless your earning or your business is earning between £18k for single person or £40k for a family with two children £120 a week is the amount to make.Flogging on to make more only gets you very small amounts.<snip>

Isn't that going to produce another problem further down the line? If you earn £120 a week self-employed, you can claim exemption from Class 2 NI contributions - and could anyone in that position afford to voluntarily pay them? However, to get the new State Pension after April 2016, you will need to have 30 years' worth of NI contributions - and who knows whether the number of years will be increased in future.

[Executive Sadman]

I think about 495,000 of them are tattoo parlours, usually open for about an hour a week.

[LiveinHope]

"everyone`s getting better at existing"!

Thanks for that "Live in Hope"!

I try to organise my life with various "stop lines" built in.( If this doesn`t work try this....and if that doesn't work try that etc etc.)

OK I`m only existing (I`m on ESA) but really I live a simple rich life.

I feel sorry for those who can`t make it though.....

Don't worry, I am under no illusions that I am just existing too at the moment

But doing other than 'just existing' doesn't mean having pots of money and toys, at least not for me.

In my book, it is about being in an environment where there is hope and you are able to achieve things through work.

I have worked in much poorer countries where the knowledge that today's work will make tomorrow better, brings a meaning and purpose to people's lives. They don't mind the day to day struggle because they can see how it makes a difference to them tomorrow.

Trying to make progress in this country is like swimming against a current of treacle.

Of course, one realisation would be for everyone to swallow the bitter pill that we aren't all as wealthy as we think we are - that for the last 30 years it's all been a charade on tick.

Edited November 16, 2014 by LiveinHope

[durhamborn]

Isn't that going to produce another problem further down the line? If you earn £120 a week self-employed, you can claim exemption from Class 2 NI contributions - and could anyone in that position afford to voluntarily pay them? However, to get the new State Pension after April 2016, you will need to have 30 years' worth of NI contributions - and who knows whether the number of years will be increased in future.

That is true.The savy ones though make sure they pay the £2.75 a week.The new pension helps them because they arent losing out on SERPS or S2P.If people dont pay them though,like you say they would be in for a shock.