2024 Year in Review: Key Staffing Insights & What’s Coming in 2025

2024 was a year of big changes for the UK recruitment industry. From new policies to exciting growth opportunities. It showed us what’s possible and where we need to improve. As we step into 2025, here’s a quick look back at what we’ve learnt from 2024 and what’s next in 2025.?

Top 3 Stories of 2024

1. IR35 Updates

• In April 2024, new IR35 rules removed double taxation and enforced stricter compliance.
• Why it matters: Firms needed to improve compliance processes to avoid penalties.

2. Healthcare & Engineering Growth

• Healthcare staffing grew by 7.6% CAGR and is set to hit ￡52.3B by 2031.
• Engineering is expected to grow by 13% by 2035, driven by a shortage of skilled talent.
• Why it matters: Specialized staffing in these sectors is a big growth area.

3. NHS Funding Surge

• The NHS received an extra ￡22.6B in funding, increasing demand for locum doctors and healthcare consultants.
• Why it matters: Recruitment firms need to gear up to meet this rising demand.

Key Industry Trends in 2024

1. Job Market Trends

• Active job postings increased by 2.4% in mid-2024, reaching 1.7M. However, the temp worker market faced a 10.5% YoY decline in Q2.
• Insight: Firms must balance permanent and temporary placements to adapt to this dynamic market.

2. Tech Adoption

• 62% of staffing firms invested in analytics tools, with AI becoming central to operational efficiency and candidate matching.
• Insight: Leveraging technology is no longer optional—it’s essential for staying competitive.

3. Cybersecurity Focus

• 75% of UK businesses prioritized cybersecurity, with the North West region leading at 83%.
• Insight: As cyber threats rise, firms must safeguard sensitive data, especially in healthcare and engineering recruitment.

4. IT Hiring Surge

• IT hiring confidence grew to +48% in Q4, even amidst political uncertainties.
• Insight: IT remains a recruitment hotspot, driven by innovation and digital transformation.

Challenges in 2024

• IR35 Risks Non-compliance penalties ranged from 30% to 100%, making it a critical issue for staffing firms.
• Employment Decline A 1.5% drop in employment and the exit of 800,000 workers created instability in the job market.
• Temp Market Decline Temporary staffing revenue is expected to decline 1.5% annually, reaching ￡55.2B by 2024-25.

What to Expect in 2025

1. ESG Regulation New rules will ensure greater transparency in ESG ratings, influencing investment decisions.
2. Rising NICs Employer NICs will increase by 1.2%, driving firms to review pricing and explore automation.
3. Specialized Staffing Growth Niche roles in healthcare and engineering will remain in high demand.
4. NHS Reforms Labour’s focus on mental health and diagnostics will expand opportunities for healthcare recruiters.

Key Takeaways for Staffing Leaders

• Stay Resilient: Adapt to rising NICs and CGT hikes by leveraging automation and optimising pricing.
• Explore Public Sector Opportunities: With ￡100B in public investment, healthcare and logistics are poised for growth.
• Expand Capabilities: Tap into niche roles and sectors driven by specialised demand.
• Leverage NHS Growth: The ￡22.6B NHS funding boost opens significant doors for healthcare recruitment firms.

Must-Reads for Recruitment Leaders

• Top 6 UK Staffing Trends 2025: How to Play Smart & Win Big in Recruitment
• Autumn Budget 2024 For UK Healthcare Recruitment Companies
• Autumn Budget 2024: UK Recruitment Companies Need to Know

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