The majority of firms that use agency workers have maintained or increased their use in the last 5 years, according to research.
A survey by the Resolution Foundation of 500 firms found that 43% had increased their share of agency workers since 2012, and 46% had kept it the same. In comparison, only 9% decreased their use of agency workers during that time.
Construction firms were the most likely to have increased their agency worker share (56%). This was followed by wholesale, retail and motor trade businesses (51%), and administration, professional and real estate industries (47%).
Demand looks set to continue, as 55% expect their use of agency workers to stay the same over the next 5 years, and 25% plan to increase it.
However, recent estimates from the ONS suggest a decline in the agency workforce, which dropped by about 11,000 workers from 2016 to 2017.
Lindsay Judge, senior policy analyst at the Resolution Foundation, said:
Demand for agency workers grew significantly over the last 5 years – particularly among firms who use them as a core part of their business model and have become agency worker reliant.
But with the latest data suggesting the growth in agency workers has tailed off, such businesses may find that they have to rethink their plans.
You might be interested in...
01 May 2026
As we've now entered the new tax year, we've outlined below how to prepare for the new tax system changes for 2026/27 and why planning ahead for your tax return in January 2027 is advised. Read our blog for an overview of the upcoming changes.
Learn more
New Tax System Changes for 2026/2730 Apr 2026
Statutory accounts show the past. Management Information delivers timely insights into performance and cash flow, driving better commercial decisions.
Learn more
Why good Management Information is essential for Business Growth
28 Apr 2026
While you can’t control geopolitical tensions, economic volatility, shifting regulations, you can control how your business is structured to respond to them
Learn more
When To Review Your Business Structure
28 Apr 2026
Market volatility and deal pace are changing how SME owners view risk and reward. Read our insights on value creation in today’s M&A market.
Learn more
Increasing the Value of your Business
27 Apr 2026
Compliance matters, but most commercial problems do not arrive neatly at month end. Modern finance supports decisions as they happen, not just records them afterwards.
Learn more
Building a Better Business with an Outsourced Finance Function
20 Apr 2026
For many businesses, the loss of the key person can cause disruption. Having Key Person Insurance can ease financial risk and uncertainty.
Learn more
What Is Key Person Insurance and Why Does It Matters for Your Business?