Economic uncertainty and the cost of hiring permanent staff in the UK has triggered a new surge in demand for highly skilled freelancers, with employers turning to outside resources to maintain business activity during challenging times.
That is according to the latest data from the Association of Professional Staffing Companies (APSCo), whose latest Hiring Trends analysis – produced in conjunction with Bullhorn – found that the number of new contract jobs added at the end of 2024 increased 33% year-on-year.
When compared to the number of new contract roles added before the economic disruption of Covid, the statistics are indicative of a buoyant market, the study reveals.
The number of these roles reported in the final month of last year saw a 5% uptick on December 2018, putting contract hiring above pre-pandemic levels.
According to a separate study, as of October 2024, there are 4.4 million self-employed individuals operating in the UK, up from 4.2 million just three months earlier and only the second time that self-employment has topped 4.4 million since the pandemic.
APSCo global CEO Ann Swain said that while there will be bumps in the road in the coming months with the National Insurance Contribution (NICs) increases and further employment legislation reforms on the cards, within the freelance market, there is still demand for highly skilled individuals who have long been in short supply.
She added: “This is a trend that we have seen during times of economic disruption and does suggest that there is an end in sight to the uncertainty that has dragged on for far too long. We anticipate a greater level of optimism once the NICs roll out has been implemented and businesses begin to once again plan for growth.”
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