Small businesses in the UK are continuing to expand their workforce despite ongoing economic challenges, according to Intuit QuickBooks’ monthly Small Business Index.
In February, employment at small businesses (those with one to nine employees) increased by 6,000 jobs compared to January, marking a 0.14% rise.
This growth brings the total number of employees in small businesses to 4,241,500, continuing the upward trend seen throughout 2025.
Alongside employment gains, job vacancies at small businesses also saw a modest rise. The number of open positions increased by 300 in February, representing a 0.25% monthly increase. There are now 125,600 job vacancies across small businesses in the UK.
Employment growth across multiple sectors
Of the 13 sectors tracked, 11 experienced job growth in February. The finance and insurance sector, as well as transport and storage, showed the fastest monthly increases, both rising by 0.24%. This equated to 100 new jobs in finance and insurance and 300 additional roles in transport and storage.
The wholesale and retail trade sector saw the largest overall employment increase, adding 1,700 jobs—a 0.2% rise. However, not all sectors shared in the growth. Real estate and information and communication were the only two sectors to experience employment declines.
Despite the overall positive trend, job vacancies dropped in 9 out of 13 sectors. The health care and social work sector had the sharpest decline, with 100 fewer open positions, a 0.91% drop. Conversely, accommodation and food services saw a significant boost, adding 700 vacancies—a 6.74% increase that contributed substantially to the overall vacancy growth.
Regional employment trends: North East leads growth
Employment gains were widespread across the UK, with all but one region seeing an increase. North East England led the way with a 0.58% increase, adding 700 jobs in February.
London was the only region to experience a decline, with a slight drop of 0.01%, equating to 100 fewer jobs.
Job vacancy trends, however, told a different story. Nine of the 12 UK regions reported a decline in small business job openings. North East England saw the fastest drop, with a 0.47% decrease in vacancies. On the other hand, North West England bucked the trend, seeing the largest and fastest increase in vacancies, adding 300 open positions—an impressive 3.40% rise.
Looking ahead
Despite economic uncertainty, UK small businesses are showing resilience by continuing to create jobs and expand their workforce. With growth across most sectors and regions, small businesses remain a key driver of employment in the country. However, fluctuations in job vacancies suggest that hiring challenges persist in certain industries.
As the year progresses, monitoring employment trends in small businesses will be crucial in understanding the broader economic landscape.
Check out the Small Business Index.
