Jessica O'ConnorThe number of white-collar professionals working in fixed-term contracts has risen sharply, as employers turn to more flexible hiring models amid regulatory and economic uncertainty, according to research from Robert Walters.
The study found a 52% year-on-year increase in fixed-term contract roles, continuing an upward trend following a 19% rise in 2025.
The increase comes as new employment-related reforms, including changes to IR35 rules and Joint and Several Liability provisions, came into effect on 6th April and are expected to influence temporary hiring practices.
Despite the changes, more than a third (36%) of UK employers said they plan to increase contractor hiring in 2026, with businesses seeking flexibility in response to cost pressures and wider economic uncertainty.
Daniel Harris, managing director for UK and Ireland at Robert Walters, said: “Key changes came into effect yesterday, the full impact of which remains to be seen.
“What is clear is that more professionals are moving into temporary roles, as businesses continue to adopt ‘wait and see’ approaches – relying on shorter 6 to 12-month contracts to stay agile amid the shifting macro-economic environment.”
Data from Vacancysoft and Robert Walters also indicated growth across multiple sectors.
Between January and March 2026, fixed-term contract roles increased most among sales professionals (30%), followed by HR (18%), IT (17%), banking (16%) and accounting (7%).
Harris said demand for specialist skills is driving contract hiring.
He said: “Many employers across professional services are engaging with contract professionals to onboard key skills without the long-term commitment. In addition to increased fixed-term contracts, we are also noting acute demand for day-rate specialists operating within transformation, systems upgrades, and financial optimisation to facilitate the projects and change initiatives that keep business operations efficient.”
The research also suggested a shift in worker preferences.
Around one in five professionals said they are actively applying for contract roles over permanent positions, citing higher pay (51%), career progression (22%) and flexibility (20%) as key motivations.
Harris added: “In the current market, more professionals view temporary positions as strategic career levers to boost pay and secure exposure to leading firms and crucial skills that facilitates faster progression.
“This is particularly pronounced amongst junior and mid-level professionals, many of whom saw their career disrupted by Covid and ongoing economic uncertainty. Fixed term contracts offer a ‘foot-in-the-door’ – providing access to a key company or within a preferred field, as well as the opportunity to demonstrate value and transition into a permanent role.”
However, the report highlighted challenges associated with contract hiring.
Around 46% of employers cited concerns around knowledge and skills continuity, while 31% pointed to issues with cultural fit and team integration.
Harris said: “Successful contractor hiring relies on effective integration. Screening processes should assess cultural fit and values alongside technical capabilities, while onboarding must support smooth transitions into permanent teams.
“Ongoing touchpoints are essential to ensure knowledge is effectively transferred throughout assignments.”
