Small business employment declines in Q3-2025

The latest quarterly data from the Small Business Index shows small business employment in the UK increased by 14,900 jobs (0.35%) in the third quarter of 2025. At the end of Q3-2025, small businesses employed 4,208,600 people. Despite the quarterly increase, employment is slightly below the Q4-2024 level due to the net loss of 16,500 small business jobs in Q2-2025 (see chart below). The data is seasonally-adjusted.

Sector with the largest increase: professional services

In Q3-2025, small business employment increased in 11 of the 13 sectors tracked by the Index. The wholesale and retail trade sector (SIC G) had the largest increase, adding 4,300 jobs. Arts, entertainment, and recreation (SIC R) had the fastest growth, at 1.03%. On the other end, accommodation and food services (SIC I) had both the largest decrease (-1,500 jobs) and fastest decline (-0.32%) in small business employment. See the table below for details.

Region with the fastest growth: London

Small business employment in England increased by 12,100 jobs in Q3-2025, a 0.33% growth rate. Among the regions of England, London had both the largest increase (6,400 jobs) and fastest growth (0.82%). East of England was the only region to see a decline in employment in Q3-2025, decreasing by 1,300 jobs.

Among the other three UK nations, Scotland had the largest increase (1,400 jobs) while Wales had the fastest growth (0.66%) in small business employment in Q3-2025. 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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