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A new study by global talent solutions provider Robert Walters reveals a notable shift in career priorities, with one-third (34 per cent) of UK professionals open to transitioning from permanent employment to contract roles in 2025 – primarily driven by a desire for increased flexibility.

“We’re noticing a shifting of values amongst professionals. Work-life balance and flexibility are increasingly prioritised, causing professionals to scope out opportunities in line with these values,” explains Chris Eldridge, CEO of Robert Walters UK & Ireland. “It’s principally this trend that’s encouraging professionals to take on a contract or temporary role over a permanent one.”

Rising interest in temporary roles

While flexibility remains the leading motivator, the study also found that 24 per cent of professionals feel their workload has increased due to budget cuts, with companies expecting more from fewer resources. In parallel, the lack of financial incentives like bonuses and pay rises has made 30 per cent of professionals more receptive to the potentially higher earnings associated with contract work.

Still, concerns linger around the predictability of take-home pay, especially as employers adjust to Government-mandated National Insurance increases and the evolving role of umbrella companies managing PAYE obligations.

“Although contracting is typically viewed as a riskier option because of the absence of job security, recent high-profile layoffs and unsatisfactory bonus seasons have prompted professionals to reconsider this,” Mr Eldridge notes.
“Some individuals might opt for contract positions as a temporary fix or a way to enter a specific company, while others may view it as a more long-term career path.”

He adds that building diverse skills and experience through contract work can serve as a strong bargaining tool when seeking future roles with improved conditions.

Employers adapting to gig economy pressures

On the employer side, 48 per cent of UK businesses report they are likely to hire temporary or contract talent this year to support project-specific needs. Additional reasons include permanent headcount freezes (20 per cent) and skills shortages (22 per cent).

“For employers, the short-term nature of contract roles allows for greater agility and quicker response times to market changes and business needs,” Mr Eldridge explains.
“Simultaneously, it means they can hire the necessary skillsets to finish projects without adding to their permanent headcount at a time when many are still considering cutbacks.”

A growing number of business leaders (25 per cent) are also recognising the potential of the gig economy to enhance workforce flexibility, while 20 per cent see it as a way to boost market competition.

Shift back towards contracting

While many professionals previously moved into permanent roles seeking stability, Robert Walters now expects this trend to reverse. With economic instability and higher employer National Insurance contributions on the horizon, firms are more inclined to embrace a flexible, agile workforce.

Supporting this trend, job postings for contractors with cybersecurity (+22 per cent), JavaScript (+six per cent), and web development (+five per cent) skills have all increased compared to the previous year.

In terms of what employers are looking for, industry-specific expertise (38 per cent) and strong soft skills (31 per cent) are expected to be the most sought-after attributes among contractors in 2025.

“The dexterity of a flexible, skilled workforce can really come into play for many employers this year – especially in digital and tech fields,” Mr Eldridge says.
“It is especially critical for leaders to ensure their tech infrastructure keeps up with the rate of change – temporary talent has the agility to help ensure company operations are secure from constantly evolving cyber-attacks and risks.”

Finance and tech drive contractor demand

Beyond tech, financial services is emerging as a key sector for contractor opportunities. According to a separate study by Grant Thornton, 93 per cent of UK finance leaders are planning digital transformation projects over the next year. Reflecting this, demand is growing for contract professionals with skills in stakeholder management (+59 per cent) and operational risk management (+18 per cent).

“As more businesses now understand that financial benefits are more significant outside of IR35, we have seen an increase in consultancy work as businesses continue to look at hiring for Tech projects, like digital transformations, that require specialist skill sets,” he concludes. “For professionals, contract roles offer the opportunity to pick up key skills and experience at a faster pace – enabling them to futureproof their careers in an increasingly competitive market.”

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