07.10.2025

APSCo Recruitment Index charts changing mood in recruitment sector

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, 29 per cent of recruiters feel positive or very positive about the global economic outlook for the recruitment sector, while just 19 per cent have a negative opinion.

Sentiment toward the UK market remains more subdued, with just 25 per cent expressing optimism, and 43 per cent still feeling pessimistic. However, this is a step forward from the 2022 Index, when only 16 per cent were optimistic and 50 per cent held negative views.

UK recruiters turning to global expansion and AI innovation

In response to the domestic uncertainty that has prevailed throughout 2025, 37 per cent of recruitment businesses are planning to expand into the US market 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 per cent) have business initiatives in place to trial specific tools, while 32 per cent are actively integrating AI into their company. A further 26 per cent have experimented with AI on a smaller scale. Despite this broad adoption, just six per cent revealed that it was demonstrating tangible benefits.

Samantha Hurley, Managing Director at APSCo UK commented: “The 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, it’s 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.

“Recruitment 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; it’s evolving, experimenting, and preparing for the future.”

Jamie Cassell, Head of Saffery’s Recruitment Practice Group commented: “Despite 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.

“This 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.

“It’s 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.”