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One million people could leave self-employment in the COVID-19-stricken UK

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According to the recent report which highlighted that there might be more than one million people in the UK are forecasting to quit self-employment after seeing their earnings plummet due to the Covid-19 epidemic.

It is noted that ahead of official figures released on Tuesday which are likely to show another jump in the unemployment rate, a report from the London School of Economics initiate that the two-decade trend in favor of more independent people was under threat.

Now, the study which conducted by the LSE Center for Economic Performance (CEP) found that in August – the month that saw the economy recover from its first shutdown – 58% of the UK’s 5 million self-employed were working less than usual. A fifth of self-employed workers expected to quit completely, rising to 58% for those under the age of 25.

The official statement showed “While growth in self-employment has been one of the main trends in the job market in the past two decades, there are now early signs that this trend could be set in the opposite direction,” said Stephen Machin, co-author of the report and director of CEP.

In contrast, more than a quarter of self-employed workers (28%) who find work through digital apps in the gig economy said they had more work than usual in August. But the CEP said its survey found that 78% of those in the app felt their health was in danger while at work. Rishi Sunak has supported the entry of self-employed workers affected by the pandemic through the Self-Employed Income Support Scheme (SEISS), which grants 80% of their regular earnings, but has been criticized for being poorly targeted and failing to help many freelancers and entrepreneurs.

The Treasury Select Committee said more than a million workers had infiltrated the support network. Now, this is alarming as we are already seeing that the workforce ratio already struggling and wages are not been upgraded due to the pandemic. What are your thoughts on it? Comment below!