The recent data from the Association of Professional Staffing Companies (APSCo) sheds light on the current employment landscape in the UK, with a particular focus on London. Despite reports of falling recruitment across the country, there are pockets of optimism, especially in highly skilled markets that have historically faced talent shortages. This analysis, conducted in collaboration with Bullhorn, reveals some intriguing trends that may impact SMEs in London.
Positive Signs Amid Economic Uncertainty
The latest Hiring Trends analysis by APSCo shows a 17% increase in contract roles between November 2024 and January 2025, excluding the seasonal lull in December. Additionally, there has been a 24% uptick in contractor vacancies compared to the same period in the previous year. While permanent recruitment continues to be affected by economic uncertainty, there are some positive signs on the horizon.
Moya Rylands, Commercial Director at APSCo, highlights the potential influence of the Government’s Employment Rights Bill and NICs increases on the employment landscape. She acknowledges that sustained growth may take time to materialize but sees the current trends as promising for the highly skilled, professional recruitment market. However, Rylands also notes that skills shortages remain a challenge for many businesses, indicating that the demand for talent is driven by resourcing gaps rather than proactive expansion.
Expert Insights and Projections
Joseph Buckley, Manager of Business Analytics at Bullhorn, provides additional context to the data, emphasizing the January surge in recruitment activity. He points out that contract jobs reached a 20-month high during this period, with permanent vacancies also rebounding from the year-end slowdown. Buckley observes that recruiters have been proactive in responding to the increased demand, sending out a flurry of CVs to match client needs. While there has been a rise in placements and sales, the overall numbers are still lower compared to the previous year.
Looking ahead, Buckley suggests that if the current momentum continues and employers demonstrate a commitment to hiring, 2025 could mark a period of stabilization if not growth in the recruitment sector. The coming months will be crucial in determining whether the positive trends observed in early 2025 will translate into sustained progress throughout the year.
The evolving landscape of employment rights, economic uncertainties, and skills shortages presents a complex challenge for SMEs in London. As businesses navigate these changes, staying informed about the latest trends and insights from industry experts like APSCo and Bullhorn can provide valuable guidance for strategic decision-making. While the road ahead may be uncertain, there are reasons for cautious optimism as the employment landscape continues to evolve and adapt to new realities.
