UK contractor market 2025: Where the growth opportunities are for recruiters
UK Payroll • Sep 9, 2025 10:14:50 AM • Written by: Del Williams
The UK contractor market seems to have been under pressure for an eternity, with a large part of my network telling me it’s the toughest time they’ve seen for quite some while. But is it all doom and gloom?
For recruitment agencies, I’m finding that certain industries are proving far more resilient and even showing growth. Knowing where demand is rising helps agencies focus their efforts, win new clients, and place contractors where the need is greatest.
Within my role here at Giant Group, and over my almost 20 years within the payroll sector, I am privy to a wide range of industry data and can observe general market conditions across 1000’s of staffing specialists within the UK.
Here’s a breakdown of where I’m finding some sectors trending up in 2025.
IT & Tech - The Clear Leader
What’s happening:
- IT contractor demand is rebounding, reaching its strongest levels since late 2023.
- Specialisms in AI, cybersecurity, and cloud engineering are driving client requirements.
- Organisations are still cautious with permanent headcount, meaning contractors are filling critical project gaps.
Opportunity for recruiters:
- Rates are holding firm in cybersecurity and starting to rise in AI.
- Clients will need fast access to specialist talent, giving agencies with ready contractor networks a competitive edge.
Construction & Infrastructure - Pivoting to Sustainability
What’s happening:
- While traditional housebuilding is subdued, green construction, retrofit projects, and modular builds are surging.
- Public sector and infrastructure investment is underpinning demand in schools, hospitals, logistics hubs, and affordable housing.
- M&E contractors are increasingly sought after, especially around data centres and energy-efficient projects.
Opportunity for recruiters:
- Agencies can build relationships with contractors skilled in sustainability, retrofit, and MMC (Modern Methods of Construction).
- Clients in infrastructure and non-residential projects are expected to rely heavily on contingent labour, opening doors for volume placements.
Defence, Aerospace & Green Energy - A Policy-Driven Upswing
What’s happening:
- UK defence spending is being lifted towards 3% of GDP, with the government forming a new Defence Industrial Council to support growth.
- Offshore wind is regaining momentum, thanks to subsidy reforms and fresh investment.
Opportunity for recruiters:
- These sectors will need specialist technical contractors at scale from engineers to project managers.
- Agencies that position early in these markets can benefit from long-term client partnerships, given the size and stability of government-backed pipelines.
If you’re a specialist within these sectors, are these trends resonating in your business?
These are some of the sectors where we’re seeing resilience and growth in 2025. Of course, the market is always evolving, and I’d love to hear from you. Which sectors are you finding buoyant, showing growth, or even hinting at recovery?