Ryan FowlerContract recruitment in the UK increased in August as employers turned to temporary staff to meet skills demands in an uncertain economy, according to the latest Hiring Trends report from the Association of Professional Staffing Companies (APSCo), produced with Bullhorn.
The data shows contract roles added in August rose 11% year-on-year, with placements up 4%. However, activity dipped compared with the previous month, with contract recruitment down 11% between July and August 2025. Permanent hiring slowed sharply, with advertised permanent roles falling 21% and placements down 11% month-on-month, reflecting seasonal trends.
Samantha Hurley, managing director at APSCo UK, said: “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 at Bullhorn, added: “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.”
