Small businesses return to hiring, but jobs recovery remains uneven – Employment Hero

Small businesses are hiring again, according to Employment Hero’s November UK Jobs Report, but the recovery remained deeply uneven across the country, with stark regional differences in employment and wage growth.

The report, based on real-time data from more than 110,000 employee records, revealed that employment in UK small businesses rose by 1.7% month-on-month in November.

Employment among small and medium-sized enterprises (SMEs) was 4% higher than in August, indicating a modest rebound despite a challenging economic backdrop.

However, longer-term trends pointed to a fractured national picture.

Employment growth was strongest in the East, which recorded a 12.1% annual rise – the highest of any region – followed by the South at 9.1%.

By contrast, employment in the North contracted by -3.8%, while London remained broadly flat at -0.2% and the Midlands posted a modest 2.6% increase.

Year-on-year, SME employment rose by 2%, well below the 7% to 8% annual growth typically seen before April’s employment law changes.

The slowdown comes as larger firms pull back on hiring, according to recent KPMG and Recruitment and Employment Confederation data, leaving smaller employers to drive what growth there is.