'Different directions' | Part-time roles fall as firms shift towards full-time hiring amid rising costs

Small business hiring is picking up, but new data suggests the UK labour market is becoming increasingly divided, with employers shifting towards full-time roles at the expense of part-time work.

While full-time employment rose 1.1% month-on-month and is up 14.6% year-on-year, part-time roles have declined for three consecutive months, disproportionately impacting older workers and women.

At the same time, wage growth remains elevated at 8.8% annually, pointing to ongoing competition for talent despite wider economic pressures and rising operating costs.

The findings come from Employment Hero, a global leader in HR, hiring and payroll software, in its March Jobs Report which tracks real-time employment and wage growth in the UK, based on data from over 125,000 employee records within small businesses. While hiring among small businesses has continued to recover, the latest data reveals a clear split between full-time and part-time roles.