For many, self-employment is associated with independence, flexibility and opportunity. Yet recent data suggests a growing number of self-employed workers are struggling to afford basic living costs, challenging long-held assumptions about work and financial security. Across Europe, and particularly in the Netherlands, poverty is increasingly affecting those who are economically active but lack the protections of traditional employment.
After five consecutive years of declining poverty levels, the number of people living in poverty in the Netherlands rose in 2024. According to Statistics Netherlands (CBS), 551,000 people were living below the official poverty line, representing 3.1% of the population. While poverty affects a broad cross-section of society, self-employed individuals without employees were identified as one of the most financially vulnerable groups.
CBS figures show that 4.4% of self-employed workers without staff were living in poverty in 2024 — more than twice the rate recorded among employees and self-employed people with employees. Long-term poverty is also more common within this group, with financial hardship persisting for several years rather than being temporary. These findings indicate that employment status alone does not guarantee economic stability.
The depth of poverty experienced by self-employed individuals is also more severe. On average, the incomes of self-employed people living in poverty were approximately 33% below the poverty threshold in 2024. This shortfall is notably larger than that experienced by employees in poverty, whose incomes fell by an average of 22%, according to Statistics Netherlands.
Sectoral differences further highlight the uneven distribution of financial risk. Poverty rates among the self-employed are particularly high in culture, recreation, hospitality, transport and trade. In education and construction, self-employed workers are disproportionately affected compared to employees. By contrast, poverty remains relatively low in the financial services sector, reflecting more stable income structures.
The withdrawal of temporary support measures has contributed to the recent rise in poverty. The energy allowance, introduced during the energy price crisis, played a significant role in reducing poverty levels in 2022 and 2023. Its discontinuation in 2024 led to a decline in purchasing power for low-income households, including many self-employed workers. While energy prices have eased since their peak, costs remain higher than pre-2022 levels, placing continued pressure on household finances.
Debt is another significant factor. Among all working adults living in poverty, around 26% faced problematic debt in 2024. This figure rises to 34% among self-employed workers and to 46% among those with employees. Outstanding tax payments, some dating back to Covid support schemes, have contributed to rising debt levels among entrepreneurs.
The issue of in-work poverty is not confined to the Netherlands. Eurostat data indicates that approximately 8.2% of workers across the EU were at risk of poverty in 2024, despite being in employment. Self-employed workers are consistently over-represented in this group, reflecting income volatility and limited access to social protection systems.
The current measurement methods may underestimate the scale of the problem. The Dutch Institute for Human Rights has noted that official poverty calculations exclude certain essential costs, such as childcare, commuting and healthcare expenses. Groups such as undocumented migrants, homeless individuals and residents of institutional care are also omitted from national poverty statistics, suggesting that actual poverty levels may be higher than reported.
The growing prevalence of poverty among the self-employed highlights a structural challenge within modern labour markets. As flexible and freelance work continues to expand, official figures increasingly show that economic participation does not necessarily equate to financial security. Ongoing monitoring and data collection will be essential to understand how poverty manifests among self-employed workers and how it evolves over time.
Written by Priyanka Sharma