Small business employment holds steady in Q2-2026

Q2-2026 small business highlights:

• UK small businesses employed 4,155,600 people in Q2-2026.

• Small business employment decreased by 2,600 jobs compared to Q1-2026, a quarterly decline of 0.06%—essentially flat, and a pause after three consecutive quarters of modest growth.

• Jobs grew in 3 of 13 sectors, with healthcare and social work posting the largest and fastest gain.

• Employment grew in 1 of 4 nations (England, marginally) and 6 of 9 English regions.

UK small business employment fell by just 2,600 jobs (-0.06%) in Q2-2026—essentially flat, and a pause after three consecutive quarters of modest growth. At the national level, the quarter looks like a holding pattern.

Quarterly trends by sector

Just three of 13 sectors tracked by the Index added jobs in Q2-2026. Healthcare and social work (SIC Q) led growth, both in absolute terms and rate, adding 5,000 jobs (0.86%). Construction (SIC F) and administrative and support services (SIC N) also grew, more modestly (+400 and +1,900 jobs, respectively). Professional services (SIC M) was effectively flat, with no net change in employment.

The declines were broader. Accommodation and food services (SIC I) shed the most jobs of any sector (-5,100), while finance and insurance (SIC K) had the fastest rate of decline (-1.46%).

See the tables and charts below for full sector details.

Quarterly trends by nation

England was the only one of the four UK nations to add small business jobs in Q2-2026, and only marginally (+700 jobs, +0.02%)—essentially flat. Scotland (-2,300 jobs, -0.78%), Wales (-600 jobs, -0.37%), and Northern Ireland (-300 jobs, -0.35%) all saw employment decline.

See the table below for full details.

Quarterly trends by region

Six of nine English regions grew small business employment in Q2-2026. The South East added the most jobs of any region (+3,800), while Yorkshire and The Humber posted the fastest growth rate (1.10%).

The East Midlands pulled the opposite direction, both the largest and fastest decliner, shedding 6,500 jobs (-2.32%). The North West (-4,700 jobs, -1.13%) and the South West (-2,600 jobs, -0.73%) also declined.

See the tables and charts below for full regional details.

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