Firms turn to freelancers as UK is hit by labour pains

Demand for freelancers is continuing to rise as companies increasingly turn to temporary experts to fill resourcing needs during a turbulent period in the labour market.

So says the latest Hiring Trends analysis from the Association of Professional Staffing Companies (APSCo) – produced in conjunction with Bullhorn – which reveals a 28% increase in contract job postings year-on-year in February.

The move follows a significant rise at the tail end of 2024.

While the professional recruitment market is still facing fluctuations, with permanent jobs down 29% year-on-year, the uptick in freelance hiring suggests that demand for skills persists, but uncertainty in the economy is preventing some employers from increasing permanent headcount – for now.

APSCo operations director Samantha Hurley said: “Given the turbulence that’s been created by macroeconomic issues and planned reforms to employment legislation, it’s no surprise that permanent hiring is still looking uncertain.

“However, the fact that demand for contractors in the professional hiring market is up annually demonstrates that employers still need resources and skills – they’re just not yet ready to increase headcount permanently.

“For recruiters, this is a promising sign for two reasons; firstly, it shows that there are still pockets of opportunity to tap into – as our data last month also echoed. Secondly, it does indicate that a potential return to optimism in hiring could be on the cards.

“Recruitment is cyclical, and when perm drops, contract increases. That’s always been the case. Seeing this trend does suggest that recruitment is still stable enough for now. Our hope is that the Government quickly recognises the detrimental impact of some of its decisions on the UK’s labour market and takes appropriate action as a result.”

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