Employment Hero UK June Jobs Report: Full-Time Pay Surges as Boomers and the North Lead Gains

Employment Hero’s June 2025 Jobs Report paints a more optimistic picture for the UK’s small and medium-sized enterprises (SMEs), with a notable rise in full-time pay, strong regional performance in the North and Midlands, and clear generational divides in wage trends.

Based on real-time data from 105,000 employees across 4,637 UK SMEs, the report indicates that employment rose by 1.8% month-on-month (MoM) and 2.4% compared to three months ago. This continues an upward trend from May’s 1.2% increase, suggesting stabilisation in the job market. However, year-on-year (YoY) growth remains subdued, dropping to 2.4% from the consistent 7–8% seen between June 2024 and March 2025.

The most significant story from June is the surge in full-time wages, which climbed by 1.0% MoM — the strongest growth since the Autumn Budget in October 2024. This marks a turning point after wage declines earlier in the year, when January saw a drop of -1.1% MoM. You can read more in Full-Time Pay Sees Sharpest Rise Since Autumn Budget Rebound.

“This uplift in pay will come as welcome relief to many workers feeling the pinch from cost-of-living pressures. It’s positive to see momentum building and the trend heading in the right direction,” says Kevin Fitzgerald, UK Managing Director of Employment Hero. “The focus for small and medium-sized businesses must shift toward sustaining these gains and building long-term confidence.”

H3: Older Generations Reap Bigger Gains

A key demographic insight from the report shows Boomers leading the wage growth, with salaries up 4.8% in June alone. Over the past quarter and year, Boomers saw increases of 6.8% and 10.4% respectively. In contrast, Gen Z saw a 0.2% decrease in June and a modest 3.5% YoY increase — the lowest of all generations.

“SMEs are investing more in experienced hires, especially Boomers and Gen X, who also saw a 1.9% MoM and 5.3% YoY wage increase,” Fitzgerald explains. “While that’s encouraging for seasoned workers, we must ensure younger generations, particularly Gen Z, aren’t left behind.” Dive deeper into this trend in Older Workers Reap Biggest Pay Gains.

H3: Regional Shifts Highlight North-South Divide

June brought positive regional developments. Salaries rose 1.8% MoM in the Midlands and dropped 1.6% in the North — but despite that dip, the North led wage growth overall: up 7.1% over the quarter and a striking 11.1% YoY. The Midlands followed with 9.4% YoY growth.

London also rebounded after three months of negative wage growth, recording a 4.0% MoM increase. This was driven entirely by full-time employment, which grew 4%, contrasting with a -1.8% decline in part-time and casual roles. However, London’s YoY wage growth of just 0.8% lags behind inflation and regional peers.

“London and the South have traditionally led the way on wage growth, but it’s great to see momentum building across the North and Midlands,” Fitzgerald adds. “This uplift in pay will be a welcome sign for workers and for SMEs, it points to growing confidence and a more resilient period ahead.” Further insights can be found in The North Leads UK in Wage Growth.

H3: Industry Spotlight: Manufacturing Rebounds

Manufacturing, a key UK sector, showed strong MoM employment growth at 5.8% in June and 4.7% over the quarter — despite a YoY drop of 9%. Analysts suggest this may reflect growing confidence following government initiatives around manufacturing and car production in 2025.Read the Employment Hero June Jobs Report in full report here.