The latest APSCo UK Recruitment Index, produced in partnership with Saffery, reveals a cautiously optimistic outlook among recruitment business leaders, alongside a clear pivot toward international expansion and AI adoption, as firms navigate ongoing economic challenges.
According to the 2025 iteration of the Index, almost a quarter (29%) of recruitersย feel positive or very positive about the global economic outlook for the recruitment sector, while just 19% have a negative opinion.
Sentiment toward theย UK marketย remains more subdued, with justย 25% expressing optimism, andย 43% still feeling pessimistic. However, this is a step forward from the 2022 Index, when onlyย 16%ย were optimistic andย 50%ย held negative views.
In response to the domestic uncertainty that has prevailed throughout 2025,ย 37% of recruitment businessesย are planning to expand into theย US marketย in the coming year, reflecting a strategic shift toward more stable and growth-oriented regions.
The analysis also suggests that UK staffing companies are exploring the potential of artificial intelligence to future-proof their firm, though few have yet to see tangible benefits. More than a third (34%) have business initiatives in place to trial specific tools, while 32% are actively integrating AI into their company. A further 26% have experimented with AI on a smaller scale. Despite this broad adoption, just 6% revealed that it was demonstrating tangible benefits.
Samantha Hurley, Managing Directorย at APSCo UK said, โThe latest Recruitment Index highlights a sector that is cautiously optimistic yet acutely aware of the challenges ahead. While sentiment toward the UK market remains mixed, itโs encouraging to see an upward shift in confidence compared to previous years. The global outlook, however, looks far more promising which we hope is a precursor to more optimism in the domestic market in the near future.
โRecruitment businesses are clearly responding proactively to changing market conditions, whether through international expansion, particularly into the US, or by embracing AI to drive operational efficiency. The data shows that our sector is not standing still; itโs evolving, experimenting, and preparing for the future. At APSCo, we remain committed to supporting our members as they navigate this dynamic landscape.โ
Jamie Cassell, Head of Safferyโs Recruitment Practice Group said, โDespite entering a third consecutive year of challenging market conditions, the UK recruitment sector continues to demonstrate resilience and adaptability. It was noted in the survey that the main challenges that are impacting recruitment businesses are a lack of client demand, government policy/global economic uncertainty and cost pressures and margin squeeze.
โThis highlights the financial and commercial pressures facing recruitment businesses and that adaptability is a key issue that must be kept front-of-mind for business leaders.
โItโs refreshing to see that future investment in technology is being prioritised by many firms and this is something we see with our own clients, as they look to harness the power of AI and other tools to help drive efficiencies. Through innovation, the sector can remain resilient in a continually challenging economic environment.โ
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