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NEW DATA REVEALS TRUE IMPACT OF NATIONAL INSURANCE HIKE ON SMES
6 April 2025, NIC changes will cost medium SMEs £18,000 annually. New analysis shows firms with >8 employees face steep costs, while Midlands businesses are hit hardest.
Summer jobs sizzle out as wages heat up
Summer hiring slowed to 2.7% growth while wages heated up. Gen Z saw the biggest pay jump at 5.6% as UK businesses battle rising labour costs.
Pay growth flat as SMEs prepare to enact jobs tax
6 February 2025 – SME pay growth stalled at 0% across Nov-Jan. Employers are freezing wages to build reserves for the Government’s upcoming jobs tax hike.
Two consecutive months of job losses following Budget
5 January 2025 – SME employment shrank again in Dec (-0.1%), marking two months of losses. Full-time roles fell 0.8% in Q4 as the Budget hits hiring early.
Full-time pay sees largest growth since the Chancellor’s Autumn Budget in October
10 July 2025 – June saw the strongest pay growth since the Autumn Budget (+1%). However, a divide emerged as Boomer wages rose 4.6% while Gen Z pay fell 0.2%.
Employment shrinks by 0.4% in February as SMEs prepare for new costs
17 March 2025 – Employment for 18-24 year olds fell 1.8% in February. Overall employment shrank 0.4% as SMEs brace for minimum wage changes and tax hikes.
London’s SME job growth slumps to 0.7% as capital trails behind regional recovery
10 June 2025 – London SME job growth hit just 0.7% in May, trailing the national average. The capital recorded the slowest wage growth as the North surged ahead.
Gen Z wages and employment first to be hit by NIC hike last month
6 May 2025 – April data shows Gen Z employment fell 1.9% and wages dropped 0.2% following the NIC hike. Young casual workers were hit hardest by the new tax.
September sees strongest employment growth in 13 months
9 October 2025 – UK employment rose 2.6% in September, the strongest rise in 13 months. Gen Z led the growth as SME confidence returns ahead of the Autumn Budget.
Employment Hero November data reveals small businesses are hiring again – but recovery is fractured across the UK
12 December 2025 – SMEs grew employment 1.7% in November, but the recovery is fractured. The East surged 12.1% while The North shrank, creating a divided labour market.
Employment Hero’s First Annual Jobs Report: Majority of UK Workers Prioritise Job Security Amid Stuttering Market
9 September 2025 – The 2025 Annual Jobs Report reveals 55% of UK workers prioritise security over ambition. 51% won’t leave their current roles as the market cools down.
Employment Hero doubles UK revenue and grows headcount by 60% in 12 months
6 February 2025 – Employment Hero doubled UK revenue and grew headcount 60% in 12 months. The HR platform now serves 25,000 UK SMEs as global ARR tops £125m.
Payroll fines hit millions of UK SMEs as errors persist, new data reveals
8 August 2025 – 84% of small businesses admit to payroll errors, with 40% facing fines. Outdated systems are costing SMEs thousands, prompting calls for better tools.
HR professionals records highest absenteeism rate in the UK workforce, new data reveals
30 May 2025 – HR and Accounting records the highest absenteeism (score 113). Gen Z workers are hit hardest with a score of 185, signaling deep burnout concerns.
Employment Hero’s 2025 work review: UK workers pushed to the limit yet still finding reasons to enjoy their jobs
4 December 2025 – Burnout pushed 28% of UK workers to take ‘sickies’ in 2025. Despite the pressure, 69% say they still enjoy their jobs in a resilient year.
