FCSA employment report contains interesting figures
The Freelancer and Contractor Services Association has released their monthly report on the state of the workforce, designed to provide some insight into the face of the labour market throughout the month of June. Some of the statistics may be surprising, especially for those who are responsible for setting the policies within government.
Figures which may be of interest include the fact that 12.1 per cent of all employees over the age of 25, both permanent and temporary, are currently earning less than the proposed National Living Wage level of £7.20 per hour. This comprised 26.4 per cent of part time workers and 7.0 per cent of full time workers, showing that the implementation of the National Living Wage could be a costly affair for some businesses.
There was also a notable rise in the number of businesses which have no employees, i.e sole proprietorships. The increase in the number of such companies amounted to 20 per cent over the period between 2010 and 2014, with 409,000 new such businesses being formed in that period. This represents 61 per cent of the total number of new enterprises founded in that period, of which just 25 per cent are registered for PAYE or VAT.
There have been some changes in the average turnover of businesses with zero employees during that time as well, namely a decline from £61,519 to £58,284 over the same period. Julia Kermode, CEO of the FCSA believes that the findings of the report show that the recent proposals which will have a significant impact on the flexible workforce could be wide reaching than ever before. With over 200,000 sole proprietorships being formed between 2013 and 2014 alone, there could be further increases in the number of similar businesses in the future.
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