Shifting market | Permanent jobs become harder to find as 1 in 4 firms turn to freelance & contractors

Workers looking for the security of a permanent job may face a tougher employment market, as new data shows 39% of UK businesses have reduced full-time recruitment while a quarter say they are hiring more freelancers and contractors. 

Against a backdrop of rising unemployment, the findings from YouGov data commissioned by Employment Hero, the AI-powered employment platform, suggest the UK jobs market is changing in a way that could reshape how people find work, build experience and plan their careers. 

The research, based on a survey of more than 1,000 UK business leaders, found that full-time employment costs have risen by almost 10% in the past year. At the same time, a quarter of businesses (25%) say they are hiring more freelancers and contractors, and plan to continue doing so. 

An untethered workforce emerges 

Employment Hero describes the trend as the emergence of an “untethered workforce” - a labour market where businesses still need people, skills and output, but are becoming more cautious about taking on the legal, financial and administrative commitments of permanent employment.