Contract recruitment sees annual growth amid economic uncertainty

Contract recruitment in the UK saw a notable year-on-year increase in August, as businesses continue to lean on temporary talent to meet skills demands in an uncertain economic climate. That’s according to the latest Hiring Trends report from the Association of Professional Staffing Companies (APSCo), produced in partnership with Bullhorn.



The analysis revealed that the number of contract roles added last month rose by 11% compared to August 2024, with placements also up 4% year-on-year. Although activity dipped month-on-month, with contract recruitment down 11% between July and August 2025, the annual uptick indicates a strategic shift among employers toward flexible staffing solutions rather than permanent headcount expansion.

This trend is further underscored by a sharp decline in permanent hiring. Advertised permanent roles fell by 21% between July and August, while placements dropped 11%, reflecting a typical seasonal slowdown.



Samantha Hurley, Managing Director at APSCo UK, commented:



“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. 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. As more organisations explore efficiencies through AI and digital transformation, we expect to see continued reliance on project-based contracts to meet short-term needs.



“The coming months will be critical for the recruitment sector, but for now, the uptick in contract demand offers a degree of reassurance for staffing professionals.”



Andy Ingham, SVP Sales, EMEA & APAC



"August naturally brought a seasonal slowdown, which is typical for this time of year. While we saw a temporary dip in permanent jobs and CV sends, it's encouraging to note that our conversion rates remained strong. The contract market, in particular, showed resilience, with placements up 4% year-over-year. This performance, boosted by a strong July, shows we are continuing to make solid progress over last year."







Press contact

Vickie Collinge

vickie@bluesky-pr.com

01582 790 705



About APSCo

The Association of Professional Staffing Companies (APSCo) is the trade association for the professional recruitment market. APSCo Global comprises APSCo South East Asia, APSCo Australia, APSCo Deutschland and APSCo United Kingdom as well as APSCo OutSource, the trade body for the RPO and MSP sectors.

Find out more: www.apscouk.org