In line with the Labour Market Statistics released for June, FCSA has issued analysis in its monthly Contingent Labour Workforce report for members and associates.
Insights include:
– 12.1% of all permanent and temporary employees (26.4% of all part time workers and 7.0% full time workers) aged 25 and over currently earn under the new National Living Wage level of £7.20.
– The number of enterprises with zero employees increased by over 20% between 2010 and 2014, mostly by virtue of the rise in the number of sole proprietorships.
- The number of sole proprietorships rose by 409,000 – 61% of the total number of additional enterprises in that period.
- Just 25% of enterprises with zero employees are registered for VAT and/or PAYE.
- The average annual turnover for all enterprises with zero employees declined from £61,519 to £58,284 over the same period.“With 12.1% of all permanent and temporary employees aged 25 and above earning less than the proposed new National Living Wage, we anticipate a number of ramifications from a contingent labour perspective – notably those placed via agencies.”
Commenting on June’s insights, Julia Kermode, FCSA’s CEO said: “It is interesting to note how significant the increase in the number of sole proprietorships was between 2010 and 2014 – with over 200,000 added in just one year alone between early 2013 and 2014. With the recent changes in legislation impacting non-permanent working – and more proposed – we anticipate further notable increases in these numbers.
Of additional note, average annual turnover in all three types of enterprises with zero employees (companies, partnerships and sole proprietorships) declined between 2010 and 2014 – a likely consequence of more individuals being engaged in work in this way and the persistently high levels of underemployment amongst the self-employed – affecting around 10% in 2014.
“With 12.1% of all permanent and temporary employees aged 25 and above earning less than the proposed new National Living Wage, we anticipate a number of ramifications from a contingent labour perspective – notably those placed via agencies.”
