UK unemployment: opportunities for your small business

Unemployment figures in the UK are looking less than rosy.

According to recent figures from the Office for National Statistics (ONS), the rate of UK unemployment has risen to 5% in the three months to September 2025. That’s the highest unemployment rate since the pandemic period from December 2020 to February 2021.

More people are unemployed than at any point in the past four years. But as an employer and a small business, this is a golden opportunity to expand your team.

Four ways your business could take on more staff

1. Hire apprentices

Apprenticeships are a great way to plug skills gaps in the business. By combining structured training with on-the-job work, you can quickly move younger people from unemployment into paid roles. This gives them hands-on experience and a nationally recognised qualification.You can also claim funding for taking on apprentices in some circumstances.

2. Start a graduate intake scheme

A graduate scheme helps you accelerate job entry for new university leavers, opening up a new pipeline of executive and management talent. Having a graduate scheme gives you a consistent supply of educated talent for future roles, while also reducing high youth unemployment.

3. Hire more part-time staff

Having more part-time roles and job shares is one way to diversify your team. Offering flexible roles allows two individuals to fill one full-time position, providing opportunities for people with other life responsibilities.

4. Engage more freelancers and contractors

By outsourcing your work to freelancers and contractors, you not only lighten your operational workload, you also help to support the UK gig economy. Engaging freelancers shifts your focus away from registered employment towards supporting self-employment.

Using freelancers also has the major benefit of avoiding the additional sick pay, holiday pay or maternity pay costs that would come with hiring paid employees.

Having the best talent available to the business is a key element of meeting your company’s goals and allowing the business to grow.