Small business employment declines in Q2-2025

The latest quarterly data from the Small Business Index shows small business employment in the UK declined by 37,400 jobs (-0.89%) in the second quarter of 2025. At the end of Q2-2025, small businesses employed 4,191,300 people. The data is seasonally-adjusted.

Sector with the largest decline: accommodation and food services

The accommodation and food services sector (SIC I) had the largest decrease and fastest decline in small business employment in Q2-2025. The health care and social work sector (SIC Q) had the largest increase and fastest growth. See the table below for details.

Region with the fastest decline: North West England

Among the regions of England, the North West had the largest decrease and fastest decline in small business employment in Q2-2025. The neighbouring North East, however, had the largest increase and fastest growth. 

Among the four UK nations, England had the largest decrease and fastest decline in small business employment in Q2-2025. Northern Ireland was the only nation with higher employment at small businesses. See the table below for details.

Methodology: For more information about the sample, data sources, and calculations used in the Small Business Index, read the full methodology here.

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