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The reality check. Do the latest jobs figures match what small businesses are actually seeing?

ended 22. April 2026

This morning’s labour market data paints a mixed picture. Official figures show UK unemployment at 4.9% for December 2025 to February 2026, down on the previous quarter. Regular pay growth has slowed to 3.6%, with private sector pay growth at 3.2%. The ONS also says vacancies remain subdued, sitting around a five-year low. 

On paper, that points to a cooling jobs market.

But small business life is rarely that tidy.

The ONS has also been open about ongoing issues with labour market data quality and volatility as it works through changes to its survey methods. So the big question is whether these figures actually match what employers are seeing day to day. 

  • Are you finding it easier to recruit now than you were a year ago, or is it still a slog to find good people?
  • Does this so-called cooling market feel real in your world, or does it feel like official data is missing what is actually happening in SMEs?
  • And even with wage growth easing, are rising employment costs, such as minimum wage increases and National Insurance, still making it harder to hire with confidence?

We’d love to hear whether today’s figures match the reality in your business, or whether the headlines tell a slightly different story from the one on your shop floor.

2 responses from the Newspage community

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Editor
Kate Underwood
Founder & Chief People Strategist at Kate Underwood HR and Training
Yes, the figures suggest the labour market is cooling, but I think many small businesses will read that and raise an eyebrow. From where I’m sitting, it’s not that hiring has suddenly become easy. Good people are still hard to find, expectations are still high, and many employers are being far more cautious about bringing on new staff because the cost of employing someone keeps rising. That is the bit the headline numbers do not always show. It is not just about pay growth slowing. Small businesses are also dealing with higher wage bills, National Insurance increases and tighter margins, all at the same time.
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Editor
Chris Barry
Director at Thomas Legal
The conveyancing industry is notoriously tough to recruit. It takes many years to gain the experience and skills needed to be a strong conveyancer. Those with law degrees tend to favour other areas of law and those without have a much longer route to becoming a lawyer. The increased cost of recruiting is being absorbed by law firms and adverts for new layers go unnoticed in most areas