Whether you live in a rural village in Liechtenstein or a metropolis like Berlin, you’d be inclined to think self-employed workers are everywhere. Ranging from the local plumber, to the freelance graphic designers and illustrators filling your favourite coffee-shop. A 2024 Eurofound report on self-employment in the EU drops a bit of a bombshell in its introduction, however. ‘The proportion of self-employed workers in the EU Member States has not increased since the beginning of the 21st century.’
‘The proportion of self-employed workers in the EU Member States has not increased since the beginning of the 21st century.’
Men are worse off than women
When delving into the numbers, Eurostat is able to calculate the proportion of self-employed workers among the total employed labour force. To do so, they use the age category from 15 to 74. The total self-employed number has dipped to 13.7% in 2022, from 15.4% in 2010. Men have been worse off than women, according to the data: the total number of male self-employed was 17% in 2022, compared to 19.5%. Women have only seen a mere decline to 9.8% in 2022, compared to 10.5% in 2010.
Major differences in Europe
Although often viewed from afar as ‘one country’, Europe has always been defined by subtle intricacies and differences. Whether through legislation or tradition, the continent has always seen vast differences between neighbouring countries. Self-employment is – among the EU Member States – most common in Greece (27%), Italy (20%) and Poland (19%) and least common in Denmark, Germany (both 8%) and Luxembourg (9%).
Only 9 (of 27) EU countries are able to report an increase in the proportion of self-employed workers in the employed labour force.
When comparing statistics in that same twelve-year period, only 9 (of 27) EU countries are able to report an increase in the proportion of self-employed workers in the employed labour force. The remaining 18 all report decreases — and some are quite drastic. Romania saw its total number of self-employed workers drop by 10.8%, Croatia by 6.7%, Portugal by 6.5% and Cyprus by 6.1%.
Sliver of hope in Baltic region
The Baltic countries of Estonia, Lithuania and Latvia are notable risers among the 27 EU countries: forming the top three of countries that report an increase of self-employed workers. The entirety of the Benelux (Belgium, Netherlands, Luxembourg) is also listed in the countries that saw an increase of self-employment. France, Malta and Hungary complete that side of the picture.
Self-employment most common in agriculture
When we look at different job areas, most people who work for themselves are in agriculture (52%), which has always been pretty common for the EU. Next comes construction work (24%) and ‘other types of jobs’ (21%). Between 2010 and 2022, the biggest drops in self-employment happened in commerce and hospitality (-3.7%), agriculture (-2.6%), and transportation and storage (-1.8%). On the other end of the spectrum, working in financial services saw the biggest jump (+2.1%).
Most people who work for themselves are in agriculture (52%), which has always been pretty common for the EU.
Europe’s imbalanced labour market
Plenty of statistics flying around — but the notion that Europe now holds the least amount of self-employed workers in its recent history is mainly down to what researchers describe as an ‘imbalance’ between labour market exits (due to old age) and the creation of new self-employed jobs. “A comparison of the proportions of self-employed workers across age groups between 2010 and 2022 highlights the drastic drop in self-employment in the older age groups”, the report adds.
Fewer older workers chose to work for themselves. Specifically, the number of self-employed people who are 65 or older went down by 15.5%
In other words: there are far fewer people aged 60 and over who want to keep working. Over the time the report looked at, fewer older workers chose to work for themselves. Specifically, the number of self-employed people who are 65 or older went down by 15.5%: from 54.9% to 39.4%. For those aged 60 to 64, it dropped by 10.1%: going from 29.3% to 19.2%.
Job strain among the self-employed
While ageing is just another metric that Europe will have to deal with for generations to come, the report did strike up a ‘significant shift’ in the job quality of self-employed workers. The survey, utilising a job quality index, assessed the balance between job demands and resources among self-employed workers. That methodology highlighted the critical concept of ‘job strain’, where an imbalance leaning towards higher demands over resources puts workers at risk concerning their health and well-being.
The link between the quality of someone’s job and their job security, health, and happiness points out the big challenges self-employed people face in Europe.
The survey showed that self-employed workers in Europe have very different experiences with their jobs. In particular, the group of self-employed people who work on their own but depend on one client or company are having the toughest time. They face many challenges, including poor working conditions and not having much control over their tasks. They also have fewer chances to grow in their careers and lower overall job satisfaction compared to others. The link between the quality of someone’s job and their job security, health, and happiness points out the big challenges self-employed people face in Europe.
A critical juncture
In lieu of the declining number of self-employed workers and the job strain some experience — you could even make the argument that the future of self-employment in Europe is at a critical juncture, the duality of which is perhaps best described in the report’s conclusion about self-employment.
“When self-employment is not a genuine choice, self-employed workers miss out both on the advantages usually offered by self-employment.”
“It can provide individuals with the opportunity to realise their own ambitions in a way that provides significant autonomy and control over their work. And it can boost innovation and job creation”, as the report states. “However, when self-employment is not a genuine choice, that paints a different picture. Self-employed workers miss out both on the advantages usually offered by self-employment and on many of the protections offered by labour law and social insurance.”
