Small business employment up in Q4-2024

Small business employment increased by 600 jobs (0.01%) in the UK in Q4-2024—a small but welcome boost after seven consecutive quarters of declines. The last time the UK had quarterly employment growth at small businesses was Q4-2022.

Looking at how each sector performed, a clear pattern emerges. Many service-based sectors enjoyed strong jobs growth, but this was almost entirely offset by the declines in product-based sectors and in those connected to finance or the housing market. Similarly, a recent House of Commons report found: “Economic growth in 2024 has been driven by services industries, which together make up 80% of the UK’s economic output.”

Northern Ireland and the North of England power ahead but London lags far behind

Strong GDP growth in Northern Ireland in Q3-2024 was followed by a surge of small business hiring in Q4-2024—as the table below shows. Last quarter, Northern Ireland’s small businesses added 2,600 jobs—more than any other UK nation.

England’s loss of 2,300 small business jobs over the same period was primarily driven by a steep decline in London—usually the powerhouse of the UK economy—where small business employment fell by a notable 16,800 jobs (2.14%). Despite this, thanks to strong growth in the north, England as a whole fared better. See table below for details.

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