Alongside the 21,000 job losses, wage growth also slowed in the period, with earnings, including bonuses, up by 1.8%, compared to an increase of 2.1% in the previous three-month period.
The Federation of Small Business said the findings reflect its own most recent results, revealed in the FSB Small Business Index, which found that small business confidence is at a post 2013-low.
FSB policy director Mike Cherry said that while the unemployment rate is at a historically low level, there are signs it is creeping back up.
“The slowdown in wage growth should also be seen as a warning sign that businesses are looking to contain costs amid a challenging policy environment”, said Cherry.
“Our latest research shows small businesses are less confident than in previous quarters. They are dealing with a raft of new cost challenges, including the National Living Wage and pensions auto-enrolment deadlines. To meet these challenges, employers are looking for ways to keep costs down and this is translating into slower jobs and wage growth.
He urged ministers to take note of these early warning signs and to take further action to ease the burden on businesses and support firms looking to grow and create jobs.
