Contract Recruitment on the Rise
A Surge in Contract Roles: What the Numbers Reveal
A fresh set of figures has brought good news for UK contractors. According to the latest Hiring Trends report from the Association of Professional Staffing Companies (APSCo), demand for contract roles continues to climb, even as permanent hiring wanes.
In August 2025 alone, the number of contract roles grew by 11% compared to the previous month. Year-on-year, contract placements are up 4%, underscoring a shift in how organisations are meeting their workforce needs.
“While recruitment was down 11% between July and August this year, the annual rise points to a strategic shift toward flexible staffing.”
The data tells a compelling story: as permanent job vacancies fell by 21% between July and August, contract opportunities have filled the gap.
Why Businesses Are Turning to Contractors
Economic uncertainty and rising operating costs have pushed many UK businesses to rethink their hiring strategies. Instead of committing to new permanent hires, organisations are increasingly relying on contractors to fill skills gaps and deliver key projects.
Three clear drivers are at play:
Economic uncertainty: Companies are cautious about long-term commitments amid unpredictable conditions.
Skills shortages: Contractors provide immediate access to specialist expertise.
Business agility: Project-based contracts support rapid pivots and innovation.
As a contractor myself, I’ve seen the jobs boards light up with new short-term roles, particularly in tech and digital transformation. Firms want to keep moving forward—but without the risk of swelling their permanent payroll.
Looking Ahead: Recruitment’s Crucial Months
APSCo UK’s Managing Director, Samantha Hurley, puts the recent data into perspective:
“The month-on-month dip in hiring is to be expected during the summer period, but the year-on-year figures provide a more accurate reflection of market sentiment.”
She adds that:
“Permanent recruitment remains subdued, which is unsurprising given the current economic climate, the upcoming Autumn Budget, and anticipated changes under the Employment Rights Bill. However, the rise in contract recruitment is a positive signal. It shows that demand for high-level skills persists, despite employers remaining cautious about long-term employment commitments.”
Hurley points out that as organisations invest in AI and digital transformation, they continue to lean on project-based talent for short-term needs. The next few months will be critical, particularly as policy and budget changes loom over the sector.
For now, the uptick in contract demand offers a reassuring sign for contractors and recruiters alike.
Practical Advice for Contractors
If you’re considering a move into contracting—or weighing up Limited versus Umbrella options—now may be the time to act. Flexible work is in high demand, and businesses are searching for skilled professionals who can hit the ground running.
Quick Reference: Permanent vs Contract Recruitment (Aug 2024 - Aug 2025)
| Recruitment Type | Month-on-Month (Aug 2025 vs Jul 2025) | Year-on-Year (Aug 2025 vs Aug 2024) |
|---|---|---|
| Contract Roles | +11% | +4% |
| Permanent Roles | -21% | (Not specified) |
In Their Words
“The rise in contract recruitment is a positive signal. It shows that demand for high-level skills persists, despite employers remaining cautious about long-term employment commitments.”
— Samantha Hurley, APSCo UK
What’s Next?
As the UK economic landscape evolves, keep an eye on:
Autumn Budget announcements
Updates to the Employment Rights Bill
Shifts in demand for contract roles in your sector
Staying informed and flexible will help you make the most of the opportunities ahead.
