Employment Hero has reported another month of recovery in UK small business hiring, but its latest March Jobs Report points to a more uneven labour market beneath the headline numbers, with full-time and part-time roles moving in different directions.
The company said year-on-year employment growth across UK SMEs reached 5.3% in March, up from 4.9% in February. On a monthly basis, however, full-time employment rose by 1.1%, while part-time roles fell by 0.5% for the third consecutive month. Employment Hero said that split suggests employers are leaning more heavily towards stability as they navigate a more complex operating environment.
The divergence is particularly sharp among older workers. Part-time employment among Boomers fell by 6.2% month on month in March, compared with declines of 2.7% for Gen X and 1.3% for Gen Y. Gen Z, by contrast, recorded a 5% increase. The gender split is also notable. Among Boomer workers, part-time employment is down 4.3% year on year for women, while rising by 0.4% for men, raising questions about which groups are being squeezed hardest by the contraction in flexible roles.
Over a longer period, the data remains more positive. Full-time roles are up 14.6% year on year, while part-time employment has grown by 3.3%. Employment Hero said that points to resilience among small businesses, even as growth remains below pre-April 2025 levels. Wage data also shows continued pressure. Year-on-year wage growth held at 8.8% in March after a sharp February rise, although wages fell by 1.1% month on month, with the North of England down 2.6%.
Kevin Fitzgerald, UK Managing Director at Employment Hero, said: “The headline is that employment growth is recovering, but the reality for small businesses is more complex. Beneath the surface, the labour market is quietly restructuring, with part-time and full-time roles moving in different directions. This is no coincidence. With the Employment Rights Act now in force, employers are making calculated choices about workforce composition and prioritising stability.
The resilience of SMEs is clear, but it’s coming at a cost. Rather than scaling hiring, many are becoming more selective – a shift that could reshape who gets access to work in the months ahead.”
The report suggests that while hiring momentum is returning, the form it takes may matter as much as the pace, particularly for workers who are more likely to rely on part-time employment.
