Smart Data Foundry Collaborates on the first Sage Workforce Monthly Tracker

In collaboration with Smart Data Foundry and The Centre for Economics and Business Research (Cebr), Sage have produced the first edition of Sage Workforce Monthly Tracker - October Insights. 

This tracker dives into how Small and Medium-sized Businesses (SMB) are managing workforce challenges and is powered by anonymised Sage payroll data obtained from a moving sample of approximately 200,000 businesses with millions of employees across the UK.

Key Takeaways

• Median Gross Earnings: £2,179 up 6.7% year-on-year.
• Median Net Earnings: £1,788 up 6.0% year-on-year.
• Headcount Growth: 0.1% increase year-on-year.

The Sage UK Workforce Tracker reveals that in October, the headcount among the sample of small businesses increased marginally compared to the same month a year ago. Meanwhile, median earnings growth accelerated year-on-year. Small businesses are navigating higher employment costs, while uncertainty over new fiscal measures in the Autumn Budget is weighing on hiring decisions.

Looking ahead, the near-term economic outlook is modest, reflecting weak consumer spending growth and fragile business confidence. Inflation is judged to have peaked in the third quarter of 2025 and is projected to ease over the coming months, offering some cost relief to businesses and scope for further rate cuts. The labour market softened over the summer, with the unemployment rate rising and job vacancies falling. Greater labour market slack is expected to permit a deceleration in the pace of earnings growth over the coming months. Liam Daly, Senior Economist at Cebr

Insights

Headcount growth in general has slowed, changes ranging from -1.3% to 0.7%, showing that businesses are not investing in new people. Nationally, the total headcount rose 0.1% from October 2024 but regionally we see more variability. Scotland, Wales, and West Midlands are amongst the lowest in terms of headcount growth but show the strongest earnings growth, indicating a tighter supply of labour in these regions. 

Year-on-year changes in headcount has varied widely by industry. Public administration and defence headcount had the highest growth of 5.8% while accommodation and food services experienced the largest drop of 1.9%. Pairing this new report together with the Sage Small Business Tracker (SMB Tracker) shows that this reduction in headcount for accommodation and food services is matched by the largest annual decrease in revenue, a 4.2% decrease. This combination of data ties workforce changes to broader economic conditions affecting revenues. 

The Workforce Tracker is a great report to gain insight into regional and industry activity for both earning and headcount, that can be used alongside the Small Business Tracker to help reveal hurdles and opportunities to businesses, guiding decision-makers toward a impactful, sustainable future.

Download the full Workforce Tracker report for comprehensive insights into how workforces within UK small businesses are adapting and changing 2025, and the role data can play in supporting SMB continued success.