When the self-employed lose their income, almost a fifth quickly get into financial difficulties. The remaining budget will then fall below the minimum wage threshold within three months.
More than a third of the self-employed are below this critical limit after a year without income. This was announced by the Central Bureau of Statistics (CBS) on Thursday, based on a model calculation by the bureau in response to the Corona crisis.
The self-employed over the age of 45 have more reserves and are therefore less vulnerable to loss of income than younger self-employed workers. After six months without income, 21% of the selfemployed between the ages of 45 and 65 are below the minimum wage threshold. After one year, 29 percent are below this limit. Among younger colleagues, it was 35 percent and 46 percent, respectively.
It is also striking that self-employed women are less financially vulnerable. Their income is lower than that of their male counterparts, but they can often draw on their partner’s income. For a full year of lost income, 28% of female self-employed people would fall below the minimum wage threshold, while men would be 38%.
Self-employed people in the hospitality, construction, transport and warehousing sectors are most at risk of loss of income. They are strongest in financial services, real estate and healthcare.