Employers Favouring Full-Time Roles over Part-Time Ones

Why It Matters

The growing preference for full‑time contracts reshapes workforce composition, potentially marginalising older and female workers who rely on part‑time jobs. For SMEs, the trend signals a trade‑off between staffing stability and inclusive hiring practices.

Key Takeaways

• SMEs added 5.3% jobs YoY, outpacing February's 4.9%.
• Full‑time hires rose 1.1% in March; part‑time fell 0.5%.
• Baby‑boomer part‑time work dropped 6.2% month‑on‑month.
• Women over 55 saw 4.3% YoY decline in part‑time roles.
• Full‑time positions grew 14.6% YoY, dwarfing 3.3% part‑time rise.

Pulse Analysis

The latest Employment Hero data underscores a decisive pivot by UK small and medium‑sized enterprises toward full‑time employment. As competition for skilled talent intensifies and the Employment Rights Act imposes stricter obligations, firms are favouring longer‑term contracts that promise greater continuity and reduced turnover. This strategic shift helps SMEs manage operational complexity, but it also narrows the pool of flexible work opportunities that traditionally attracted a diverse labour base.

Demographically, the move away from part‑time roles hits older workers hardest, with baby‑boomers experiencing a 6.2% month‑on‑month drop. The impact is especially pronounced for women over 55, whose part‑time participation fell 4.3% year‑on‑year, raising concerns about gender‑age equity in the labour market. As part‑time positions shrink, these groups risk reduced income stability and lower labour‑force attachment, potentially widening the retirement‑age gap and limiting consumer spending power among a key demographic.

Wage dynamics add another layer of complexity. While annual wage growth held steady at 8.8%, monthly figures slipped 1.1%, and regional disparities emerged, with the north of England seeing the steepest decline. Persistent inflation and rising operating costs challenge the sustainability of generous pay packages, prompting SMEs to balance compensation with the need for a leaner, more adaptable workforce. Policymakers and business leaders will need to monitor these trends closely to ensure that the drive for stability does not erode inclusive employment opportunities.