The number of self-employed people working in the UK has reached its highest level ever, a fact which is driving the rise in employment generally.

Figures from the Office for National Statistics (ONS) show that 4.6 million people work for themselves, accounting for 15 per cent of the working population. It is the biggest proportion since records began 40 years ago.

In addition, 356,000 employees have declared a second income stream from self-employed work.

It is a positive sign for the entrepreneurial economy, with better and cheaper communications technology allowing greater numbers of people to work for themselves.

But it is not all good news. The ONS also revealed average earnings from self-employment falling 22 per cent since 2008.

“Total employment in the second quarter of 2014 was 1.1 million higher than in the first quarter of 2008, just before the economic downturn that hit the UK,” stated the ONS report.

“Of this increase, 732,000 was among people who are self-employed so the rise in total employment since 2008 was predominantly among the self-employed. The total number of employees rose by 339,000 over the same period.”