Contract work remains a critical pillar to helping the economy grow

A new report shows that a combination of economic uncertainty and weak growth strategies is squeezing the job market.

This has resulted in fewer placements, shorter contracts and a fall in both temporary and permanent workers.

‘Flexible workers get the job done, and temporary, contract and agency work help businesses thrive’

According to the latest Recruitment and Employment Confederation’s Recruitment Industry Status Report (RISR), the job market has tightened since 2024, but says that flexible and temporary work remains a critical pillar to meeting people’s needs and helping the economy grow.

The report estimates that on any given day in 2024, 872,000 temporary or contract workers were on assignment, down 17.6% from the previous year.

The average length of assignment for temporary workers among respondents was 18 weeks in 2024. This is down from 22 weeks in 2023.

It is, however, important to view this number in the longer-term context, as it is still higher than the 15-week average in 2022.

In response to these findings, REC Chief Executive Neil Carberry makes the point that flexible workers are pivotal when it comes to meeting people’s needs and helping the economy to grow.

He said, “For too long, policy makers have looked down their noses at flexible work, ignoring feedback from workers and companies alike that it boosts opportunity, efficiency and growth. Nowhere is this more true than in the public sector, despite the wrong-headed attacks by unions and changes made by officials that push costs up, not down.

“Recruiters are navigating a low growth economy as the UK works toward recovery. The sector has pushed hard for pragmatic regulation, particularly in the new Employment Rights Bill and also the treatment of temporary and contract workers.”

He added, “Recruitment makes a significant contribution to the UK economy and is proving resilient in a sticky job market. Technology is transforming how businesses hire and new firms are entering the market. The sector is evolving rapidly and is positioning itself as a trusted adviser on training, legal changes, AI adoption, shifting workforce demands and inclusion.

“This annual survey shows an industry that is adapting and leading even as conditions remain challenging. With stronger government support on growth, skills reform and employment law, the recruitment sector could unlock even greater potential for the economy in the next year.”

To find out more about contracting, please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.