Professional Staffing Market Shows Signs of Recovery

The recruitment industry is finally seeing green shoots of recovery, with new data revealing encouraging growth across key metrics.

Contract Hiring Leads the Charge
According to the Association of Professional Staffing Companies (APSCo) latest Hiring Trends analysis, produced with Bullhorn, contract hiring is driving the recovery. Numbers jumped 4% month-on-month and an impressive 11% year-on-year in May 2025.

While permanent job postings remain 32% below 2024 levels, they’re stabilising with a 1% uptick between April and May. More encouragingly, placement numbers are rising across both sectors – permanent placements up 3% monthly and contract placements up 1%.

Cautious Optimism from Industry Leaders
“This latest data show signs of optimism that the professional staffing sector will certainly welcome,” commented Samantha Hurley, UK Managing Director at APSCo. “The increase in contractor jobs and placements demonstrates that demand for expertise is growing, but caution remains in relation to increasing headcount.”

Andy Ingham, SVP Sales, EMEA & APAC at Bullhorn, highlighted recruiter resilience: “Permanent placements remain steady despite a lean pipeline – a testament to recruiter resilience and focus on quality. Contract jobs rebounded this month and are up 11% year over year.”

What This Means for Recruiters
The data suggests businesses are prioritising flexible expertise over permanent headcount expansion – a familiar pattern during economic uncertainty. For recruitment agencies, this represents both opportunity and strategic pivot point.
As Hurley notes, “There will come a point where we see this shift back to the permanent market, but until then, this snippet of optimism should be a much-needed boost to recruiters.”

The message is clear: while recovery is underway, it’s being led by contract demand. Smart agencies will optimise their operations for this reality while preparing for the eventual permanent market rebound.

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Professional Staffing Market Shows Signs of Recovery

Employers are nearly five times more likely to trust private recruiters over Jobcentre Plus to find the right hire, according to a new REC survey revealed in this week’s Recruiter. With 42% of employers backing recruitment agencies compared to just 8% for Jobcentre Plus, this insight lands as the government kicks off reforms to overhaul its outdated work support services.
For recruitment business owners, the opportunity is clear. The REC is urging the government to bring recruiters into the heart of public job schemes, citing the Restart Scheme’s 3,000 placements as proof of what collaboration can deliver. As REC Deputy CEO Kate Shoesmith puts it, “Recruiters are a huge help for employers to attract and retain talent.”

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AI agents are coming

This article in Recruiter (7 May 2025) highlights how AI agents are already transforming the way recruitment businesses operate, with real-world examples from firms like DeWinter and DHL showing measurable gains. Tools such as DWIGHT are reducing manual tasks from 45 minutes to under four, while Carv’s AI platform has saved recruiters 26 hours a week and helped increase hires by a third.

For recruitment business owners looking to scale efficiently, this is more than a trend. As Barend Raaff of Carv explains, “Agentic AI means AI that doesn’t just assist – it acts,” offering the speed, consistency and time savings that allow teams to focus on what matters most: people.

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