New data reveals that the UK job market remains challenging, posing difficulties for SMEs that are already grappling with tight margins, rising operational costs and ongoing talent shortages.
Despite the pressure, many small and medium-sized businesses are finding renewed agility by embracing freelance and hybrid operating models as searches for ‘flexible work’ has soared by 171% over the past month.
According to new YouGov findings, 53% of Britons believe it is difficult to find a job, while only 31% say it is easy. For business owners, this reflects a market in which recruitment remains competitive and costly, while employees themselves feel increasingly uncertain about their career prospects.
| How easy is it to find a job in the UK? | |
| Answer Option | Overall % of responses |
| Very Easy | 4% |
| Fairly Easy | 27% |
| Fairly Difficult | 36% |
| Very Difficult | 17% |
Younger adults are particularly pessimistic, with 74% of 18–24-year-olds describing the job market as “difficult.” A sign that early-career talent is cautious and more likely to explore freelance or project-based work over traditional employment. .
| How easy is it to find a job in the UK based on age range | ||||
| Answer Option | 18-24 | 25-49 | 50-64 | 65+ |
| Very Easy | 2% | 3% | 5% | 4% |
| Fairly Easy | 16% | 26% | 30% | 31% |
| Fairly Difficult | 41% | 36% | 34% | 36% |
| Very Difficult | 33% | 19% | 16% | 9% |
Against this backdrop, SMEs are increasingly turning to flexible workforces to improve responsiveness, reduce overheads and access specialist skills on demand.
“The job market may be tough, but flexibility is giving people control again,” says William Stokes, CEO at Co-space. “We’re seeing professionals from every sector choosing to freelance, consult or start their own businesses, and flexible workspaces are at the heart of that shift. You no longer have to wait for the right job; you can create your own.”
The rise of freelancing and contracting is giving SMEs more options to navigate economic uncertainty without committing to full-time roles.
This shift enables SMEs to remain lean, innovative and competitive and requires less long-term risk than traditional hiring.
“Flexibility fuels mobility,” William explains. “People can move from employment to entrepreneurship without losing community or collaboration. Co-working hubs provide the infrastructure that makes that possible, they’re modern economic engines connecting talent, ideas and opportunity.”
Flexible office spaces are becoming strategic hubs for SMEs that want cost predictability, professional facilities and access to local talent pools. Many businesses are choosing co-working environments over long-term leases to support hybrid teams, early-stage scaling, client-facing credibility and low-overhead expansion into new regions.
“The future of work isn’t just remote, it’s dynamic,” adds William. “Professionals want choice, flexibility and freedom. The challenge for businesses is to adapt and harness this flexibility rather than resist it.”
Five tips for SMEs exploring freelance support, flexible working or new ventures:
1. Start small, test before you leap – You don’t have to quit overnight. Begin by taking on freelance projects or side work while still employed to test your market, refine your offering, and build client confidence.
“Treat freelancing like a pilot project, it’s about validating demand and your personal readiness before going all in,” says William Stokes, CEO at Co-space.
2. Build your professional ecosystem early – Isolation is one of the biggest risks for new freelancers. Join co-working spaces, professional networks, or local meetups to connect with like-minded people.
“Your network becomes your net worth, co-working hubs are ideal because they give you instant access to collaborators, clients, and community,” adds William.
3. Define your niche and value – Clarity beats breadth. Focus on a clear niche or set of services that differentiates you from competitors. Whether it’s web design for start-ups or HR consulting for SMEs, define your value early.
“People buy expertise, not generalists. The clearer you are about your offer, the faster you’ll grow.”
4. Plan your finances – Set aside savings to cushion the transition, budget for taxes, and invest in essential tools. Consider joining co-working spaces that offer all-inclusive costs for office space, Wi-Fi and meeting rooms to simplify overheads.
“Financial flexibility means predictability, knowing your base costs gives you freedom to focus on growth.”
5. Prioritise visibility and momentum – Create a strong online presence through LinkedIn, a simple portfolio website, or industry platforms. Use co-working events, local showcases, or online communities to get your name out there.
“Visibility builds credibility. The moment you show up consistently, opportunities start to find you,” William advises.
