Job & Career

Are you thinking about giving up your self-employment and going back to a permanent job?

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Contents 8 sections
  1. Why are more and more people giving up self-employment?
  2. What opportunities does the current job market offer you?
  3. How do you find the right job after self-employment?
  4. What should you pay attention to during the transition?
  5. What mistakes should you avoid when job hunting?
  6. What does the skilled labor shortage specifically mean for your job search?
  7. Has self-employment really failed if you stop?
  8. You might also be interested in

The decision isn't an easy one for you, that's clear. For years you gave it your all, acquired clients, tackled projects and did your own thing. But at some point, many freelancers reach the moment when the question forces itself upon them: Is this still the right path for me? You're not alone. Since 2012, the number of self-employed people in Germany has been declining continuously, and the reasons for this are as varied as the people behind it.

Giving up self-employment crossroads featured image
Sometimes the path to permanent employment leads straight to happiness, even if it feels like a step backward at first.

Maybe you know the feeling of lying awake at night wondering where the next job will come from. Or you're calculating for the tenth time whether health insurance, retirement provisions and rent are still affordable this month. Self-employment can be great, but it's simply not the right choice for everyone in the long run. And that's completely okay.

Why are more and more people giving up self-employment?

The numbers speak clearly. According to the Federal Statistical Office, the number of self-employed people fell by a further 38,000 in 2025 to a total of 3.7 million. This downward trend has now continued for over a decade. The decline is most evident among solo self-employed people, that is, those without their own employees.

The reasons for this are varied. Tightened regulations on false self-employment make it harder to build long-term client relationships without ending up in legal gray areas. Social security contributions eat up an ever larger share of income, and retirement provisions often fall by the wayside. At the same time, the job market for employees has improved significantly. Companies offer flexible working models, remote work and attractive salaries to stay competitive in the race for skilled workers.

On top of that comes an aspect that is rarely talked about: the psychological strain. As a self-employed person, you bear full responsibility. Every decision is up to you, every mistake is on you, and vacation often just means the work piles up. For some people, this burden is too heavy in the long run.

What opportunities does the current job market offer you?

Here's the good news: The job market has fundamentally changed in recent years. Companies are desperately looking for qualified skilled workers, and as a former self-employed person you bring qualities that are worth their weight in gold. You know the pressure of working independently, you can see projects through from start to finish, and you understand the client's perspective like hardly anyone else.

IndustryOpen positions (2024)Particularly in demand
Healthcare46,000Nursing staff, physiotherapists
Construction41,300Electricians, plumbing specialists
IT and technology109,000Software developers, AI specialists
Public administration37,600Clerks, educators
Mechanical engineering18,000Engineers, technicians

The table shows: Skilled workers are being sought in practically every industry. According to the German Economic Institute, over 260,000 positions in the ten most affected industries remained unfilled in 2024 alone. That means for you: You have the choice. It's no longer the companies deciding whether you fit them. Today, you decide which employer fits you.

How do you find the right job after self-employment?

The application process has changed since you last wrote a résumé. Today much happens digitally, and the classic application folder has had its day. Job boards and career platforms give you a quick overview of job offers in your region and your field. You can filter specifically for companies that match your expectations.

Give up self-employment job search laptop
Job hunting today is a bit like online dating, except that in the end your match pays you a salary

When searching for jobs, pay attention to more than just the salary. Flexible working hours, remote work options and training opportunities are factors that significantly influence your everyday working life. Many companies have understood that they have to offer attractive conditions to win and retain good people. Use this negotiating position.

Your time as a self-employed person is not a blemish on your résumé, but a plus. You have proven that you can think entrepreneurially, that you take responsibility and that you perform under pressure. Employers are desperately looking for these qualities.

What should you pay attention to during the transition?

The switch from self-employment to permanent employment is more than just a job change. It's a change in your entire way of life. Suddenly you have fixed working hours, a boss and colleagues. That can be liberating, but it can also require some adjustment.

Take your time with this transition. Wrap up ongoing projects cleanly, inform your clients in good time and take care of deregistering your business. For tax purposes, it can make sense to consult an advisor so you don't get any nasty surprises.

Checklist for the transition to permanent employment:

☐ End ongoing projects with an appropriate notice period ☐ Inform clients about the closure of your business ☐ Deregister your business with the responsible authority ☐ Consult a tax advisor for the final paperwork ☐ Clarify social insurance status (health insurance, pension insurance) ☐ Update your résumé and present self-employment as a strength ☐ Activate your network for the job search ☐ Adapt application documents to current standards

Financially, you should plan for a buffer. Some time can pass between the end of your self-employment and your first salary. The switch from advance payments to monthly salary payments also requires new budget planning.

What mistakes should you avoid when job hunting?

Many former self-employed people make the mistake of downplaying their freelance time in job interviews or even portraying it as a failure. That is fundamentally wrong. You ran a business, even if it was only a one-person business. You won clients, wrote invoices, did marketing and took care of everything. These are skills that are valuable in any position.

Another mistake: accepting just any position too quickly. Yes, the pressure to have a regular income again can be great. But if you take the first job that's offered to you without checking whether it really suits you, you may end up in a situation that makes you just as unhappy as self-employment did before.

Giving up self-employment job interview
In a job interview, honesty lasts longest, but a little self-marketing doesn't hurt either.

Also don't underestimate the cultural difference. As a self-employed person, you decided everything yourself. In a company, you have to coordinate with others, compromise and sometimes accept decisions you would have made differently. That's not worse, just different. Prepare yourself mentally for it.

The much-cited skilled labor shortage is not an abstract statistic, but has very concrete effects on your negotiating position. According to the Bitkom study 2025, over 109,000 skilled workers are missing in the IT industry alone. And that's only one industry of many.

This situation gives you a strong position as an applicant. Companies can no longer afford to be picky or to reject applicants with unconventional résumés. On the contrary: Career changers and people with broad experience are in demand like never before. According to Bitkom, one in five newly filled IT positions already goes to a career changer.

Demographic change exacerbates the situation further. More people are leaving working life than young skilled workers are coming up behind them. For you, that means: Your experience is valuable, regardless of whether you gained it as an employee or as a self-employed person.

Here are some industries that are recruiting skilled workers particularly aggressively:

  • IT and software development with a focus on AI and cybersecurity
  • Healthcare from nursing to physiotherapy
  • Skilled trades, especially in electrical and plumbing
  • Education and childcare from daycare to vocational school
  • Logistics and transport with growing e-commerce demand

Has self-employment really failed if you stop?

Many people ask themselves this question, and it's an important one. The answer is: No, absolutely not. Self-employment is a phase of life, not a lifelong obligation. Some people remain self-employed their entire working lives, others only for a few years. Both are completely fine.

The decision to give up self-employment can be just as courageous as the decision to begin it. It requires self-reflection, honesty and the willingness to embark on a new path. These are not signs of weakness, but of maturity.

Maybe your life has changed. Family, health, personal priorities: All of these influence which form of work suits you. What was the dream at 25 can become a burden at 40. And vice versa: Some people only start self-employment later, after gaining experience and security in permanent employment.

In any case, the job market is happy to have you. Your skills, your experience and your entrepreneurial thinking are exactly what many companies are looking for. So: Dare to take the next step.

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