Category of ‘new’ self-employed persons is growing
Published: 20 December 2006
The Federal Ministry of Economics and Labour (Bundesministerium für Wirtschaft und Arbeit, BMWA [1]) commissioned a study on the so-called ‘new’ self-employed in Austria. In February 2005, BMWA published the research results in the final report Neue Selbstständige in Österreich (in German, 1.65Mb PDF) [2]. In contrast to the ‘old’ self-employed, the ‘new’ self-employed are not members of the Austrian Federal Chamber of Economy (Wirtschaftskammer Österreich, WKO [3]) and do not possess a trade licence. Freelance workers, such as journalists, artists, veterinarians and dentists, also form part of the group of new self-employed people. In general, new self-employed people conclude work or service contracts with their clients, under which they are paid for a specific job or service.[1] http://www.bmwa.gv.at/BMWA/default.htm[2] http://www.bmwa.gv.at/NR/rdonlyres/75D72998-3404-4134-B2EF-DDEC13FDDCAE/0/NeueSelbststaendige.pdf[3] http://portal.wko.at/wk/startseite.wk
A 2005 government study examines the situation of the so-called ‘new’ self-employed in Austria: persons who can conclude work or service contracts without holding a trading licence. The study is based on data from the Main Association of Austrian Social Security Institutions as well as on telephone interviews. It provides relevant information on the composition and fields of activity of this group of economically active people.
The Federal Ministry of Economics and Labour (Bundesministerium für Wirtschaft und Arbeit, BMWA) commissioned a study on the so-called ‘new’ self-employed in Austria. In February 2005, BMWA published the research results in the final report Neue Selbstständige in Österreich (in German, 1.65Mb PDF). In contrast to the ‘old’ self-employed, the ‘new’ self-employed are not members of the Austrian Federal Chamber of Economy (Wirtschaftskammer Österreich, WKO) and do not possess a trade licence. Freelance workers, such as journalists, artists, veterinarians and dentists, also form part of the group of new self-employed people. In general, new self-employed people conclude work or service contracts with their clients, under which they are paid for a specific job or service.
L and R Social Research (Lechner, Reiter und Riesenfelder Sozialforschung OEG) carried out the study, which is based on data from the Main Association of Austrian Social Security Institutions (Österreichische Sozialversicherung, SV) and on telephone interviews with a total of 303 people among the ‘new’ self-employed.
Characteristics of the ‘new’ self-employed
According to SV, some 22,686 people were classified as new self-employed in 2003. Between 1998 and 2001, the overall number of new self-employed people increased from 19,849 to 25,991 persons; since then, the number has decreased to 22,686 persons, with a majority of men (58.4%) working in this category. Over the same period, the number of women working as new self-employed also increased, amounting to 6,978 new self-employed women in 1998 and 9,440 women in 2003. Thus, between 1998 and 2003, the proportion of women in new self employment increased from 35.2% of all workers in this category to 41.6% of the total.
| Men | Women | Total | ||||
|---|---|---|---|---|---|---|
| Age group | Number | % | Number | % | Number | % |
| Under 24 years | 294 | 2.2 | 234 | 2.5 | 529 | 2.3 |
| 25–34 years | 2,984 | 22.5 | 2,348 | 24.9 | 5,332 | 23.5 |
| 35–49 years | 6,924 | 52.3 | 5,125 | 54.3 | 12,049 | 53.1 |
| 50 years and over | 3,044 | 23.0 | 1,733 | 18.4 | 4,777 | 21.1 |
| Total | 13,246 | 100.0 | 9,440 | 100.0 | 22,686 | 100.0 |
Source: BMWA, 2005
In terms of age composition, it is more common among middle-aged people to choose this kind of employment. More than half of new self-employed people (53.1%) are between 35 and 49 years of age; almost a quarter (23.5%) of new self-employed people are aged between 25 and 34 years, and one fifth (21.1%) are older than 50 years. Interestingly, the age composition of the new self-employed is more or less the same for women and for men, except for the age group of over 50 years, where men – at 23% – significantly outnumber women, at 18.4%.
Educational level, areas of activity and occupations
High levels of education are very common among this group in the labour market. Most of the new self-employed hold a college or university degree (48.3%) or have graduated from secondary school (20.3%). Moreover, the proportion of new self-employed who have completed an apprenticeship (18.6%) can also be considered as significant; this high proportion is mainly due to the fact that more than one quarter of all new self-employed men have completed an apprenticeship, whereas the percentage is much lower among women. Conversely, most new self-employed women (67.2%) have graduated from college or university: the proportion of new self-employed women with a college education is nearly twice as high as that of men (35.8%). Overall, new self-employed women have a higher educational level than their male counterparts.
| Men | Women | Total | ||||
|---|---|---|---|---|---|---|
| Number | % | Number | % | Number | % | |
| Primary school | 9 | 5.1 | 4 | 3.2 | 13 | 4.3 |
| Apprenticeship | 49 | 27.8 | 7 | 5.6 | 56 | 18.6 |
| Technical school | 11 | 6.3 | 9 | 7.2 | 20 | 6.6 |
| Secondary school | 40 | 22.7 | 21 | 16.8 | 61 | 20.3 |
| College, scientific education | 63 | 35.8 | 84 | 67.2 | 147 | 48.8 |
| Other | 4 | 2.3 | - | - | 4 | 1.3 |
| Total | 176 | 100 | 125 | 100 | 301 | 100 |
Source: BMWA, 2005
The level of work or service carried out corresponds to the educational level of the new self-employed person. Almost two thirds of all new self-employed persons perform higher or highly qualified types of work or services, and more than one quarter are engaged in medium-qualified work or activities usually carried out by skilled workers. In terms of gender distribution, almost 80% of women either perform higher or highly qualified work, whereas most men (36.7%) are engaged in medium-qualified work or activities usually carried out by skilled workers.
Looking at the occupational and professional profiles of new self-employed people, respondents most frequently indicated the following three occupations: teaching and cultural professions (40%); healthcare professions (17.6%); and technical professions (11.6%). On this basis, it appears that the labour market for new self-employed people is also a gender segregated one. Teaching and cultural professions are female dominated and encompass occupations such as psychologists, coaches, ski instructors or trainers. Furthermore, women are also overrepresented in the healthcare professions, such as physicians, physiotherapists, speech therapists, nurses and hospital nurses. Not surprisingly in terms of traditional roles, more men (15.3%) than women (6.4%) hold technical occupations, with areas of work ranging from structural engineering and foods, to software engineering and web design.
Marion Vogt, Working Life Research Centre (Forschungs- und Beratungsstelle Arbeitswelt, FORBA)
Eurofound recommends citing this publication in the following way.
Eurofound (2006), Category of ‘new’ self-employed persons is growing, article.
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