Please forgive me If am bastardizing Marx and Engels ideas. But idea that working for yourself and producing a commodity as a craftsperson(petty commodity production) has been consistent with modes of production since the birth of the simple exchange economy.
If I recall correctly Marx used the idea of a horse drawn carriage for further explain the relationship of production. The role of the craftperson or self employed person was minimaxed to a trivial role as feudalism gave way to capitalism. Capitalist discovered the specialization of labour was much much more efficient on the factory floor and than craftpersons production. Its much cheaper and less time consuming to make something in factory than by handcraft. So the role of the petty commodity production has become trivial in an advanced economy.
So I would agree the craftsperson is not commodity but you still have buy inputs, pay rent, borrow money to maintain a healthy business. Your exploited in a different way than wage labour. Regardless of who your employer is government or private sector.
Some may think that being a contractor and self employment is the way to go. I remember but I do not know the current status of the program in the UK. But the conservatives have tried to transfer the unemployed into self employed(It is or was a major program with lot of government backing). When I was reading about the program it was ugly reading, I will try to get a update on the scheme.