State of the Market

[oliverson]

To me it feels like it's regressing back to 20+ years ago, which I don't think is a bad thing. Contracting from my perspective was experienced individuals filling skill gaps on projects to get x,y,z done. Then everyone and his dog realised they could take home more money doing the same job, so you ended up with situations where half the people in a company were contractors.

Right now there's still too many contractors and not enough demand, so contracts are offered on a friends recommended basis or experience/skill basis. Seeing a lot of permie-tractors on Linkedin who put in zero effort to actually doing work whilst contracting, struggling to find work. When I say zero effort, I mean falling asleep in meetings, arriving at lunch time etc.

Sadly the rates on offer these days are from 20+ years ago. Less in some circumstances.

[krytonsheep]

Even though I've been contracting for 17 years, I just can't see it improving.

To me it feels like it's regressing back to 20+ years ago, which I don't think is a bad thing. Contracting from my perspective was experienced individuals filling skill gaps on projects to get x,y,z done. Then everyone and his dog realised they could take home more money doing the same job, so you ended up with situations where half the people in a company were contractors.

Right now there's still too many contractors and not enough demand, so contracts are offered on a friends recommended basis or experience/skill basis. Seeing a lot of permie-tractors on Linkedin who put in zero effort to actually doing work whilst contracting, struggling to find work. When I say zero effort, I mean falling asleep in meetings, arriving at lunch time etc.

[WTFH]

Jul 2022 to Jun 2023: 334K layoffs
Jul 2023 to Jun 2024: 151K layoffs
Jul 2024 to Jul 2025 : 118K layoffs

Full year 2021: 16K layoffs

I know you like to desperately find figures that fit your thinking, but maybe add a bit of context.
In 2020 & 2021 we had a global pandemic. Many businesses were treading water, or relying on IT to set up and support remote working. I realise some people like to cancel history and say that there was no pandemic and no one died, but it was real, it did happen.

Perhaps it would be good if you compared the data since this thread started.

[Fraidycat]

Sadly I think that until the budget is out of the way at the end of November, there's not going to be much movement.

Just got to keep applying for everything suitable and even considering perm at this stage. Sadly from what you've said, perm positions are also well down too though.

The UK firm I am working at laid off 5% of perm staff last month. First layoffs they have done in over a decade.

Also historically they tended to give annual pay rises in line with inflation, this year the pay rises will be about 2% below inflation, which saves them the 2% employer NI increases (the employer NI rise was about 2% if you include the threshold change), showing that employees are really the ones who end up paying employers NI, except maybe those who on minimum wage and so their employers cant use that trick.

Historically the US Fed raised rates in March 2022. Almost immediately the big US tech firms began mass layoffs including in their UK offices. The contractor market went belly up a few months later around July 2022 and hasn't recovered since. A couple of posters on this thread have recently said they have been benched since the middle of 2022. Three full years now

The UK BOE began raising rates 4 months ahead of the US Fed (in December 2021) but that wasn't enough on its own to take the UK contracting market down.

I used Jan to September, 9 month periods for the layoffs data in my previous post above.

Since this current slowdown began around Jul 2022, I could of used Jul to Jun full year periods:

Jul 2022 to Jun 2023: 334K layoffs
Jul 2023 to Jun 2024: 151K layoffs
Jul 2024 to Jul 2025 : 118K layoffs

Full year 2021: 16K layoffs

https://layoffs.fyi/

[ShandyDrinker]

As others often point out, the number of perm jobs advertised is also way down as well.

So it is still general belt tightening all round.

I cant see things improving until IT sector layoffs are back to normal levels.

A fair comment. Pleased that I've built a reasonable war chest over the years although don't want to burn through it while sat on the bench.

Sadly I think that until the budget is out of the way at the end of November, there's not going to be much movement.

Just got to keep applying for everything suitable and even considering perm at this stage. Sadly from what you've said, perm positions are also well down too though.

[Fraidycat]

There just aren't the contracts being advertised anymore.

Even though I've been contracting for 17 years, I just can't see it improving.

As others often point out, the number of perm jobs advertised is also way down as well.

So it is still general belt tightening all round.

I cant see things improving until IT sector layoffs are back to normal levels.

IT layoffs are still happening, but are lower than 2024, and much lower than 2023. But still not back to the almost non existent levels of 2021 and the pre covid years.

Layoffs.fyi tech sector data (number of global IT layoffs as reported in the media):

First 9 months of 2023: 240K layoffs
First 9 months of 2024: 140K layoffs

So far in 2025: 84K layoffs

Compare with the first 9 months of 2021 when there were just 13K reported layoffs

[ShandyDrinker]

I finished my most recent contract in July. As someone who contributed to the first page of this nearly decade long thread, I think this market is significantly worse than 2008 and even during covid. There just aren't the contracts being advertised anymore.

Even though I've been contracting for 17 years, I just can't see it improving.

[simes]

On a side note, this forum has been slowing down markedly the last few days. Seems like something needs rebooting!

Similarly noticed. Which speaks to the end of contracting as a way of working, and a redundancy of this website in short.

After all, there are precious few forums that discuss rubbing sticks together as a way of making fire...

[oliverson]

I have had four approached this week for roles that are not for Indian consultancies.

Maybe things are picking up after the holidays?

That's what I'm seeing. I've had probably six cold calls from agents this week and one interview that I'm awaiting feedback on, though 2 days radio silence tells me all I need to know on that one I think.

On a side note, this forum has been slowing down markedly the last few days. Seems like something needs rebooting!

[simes]

Am now 'celebrating' two full years of no contracting work. Not only no work, but not even an interview.

Maybe one call in that interim. A few emails that offer Data Centre Engineers or Product Managers; I am a Project Manager, or was.

I went old school last week which is to say, I applied for something on Jobserve.com and figured I should follow up with a call. The chap even had a phone number on the ad and even more incredible, it was picked up. For an Outside gig that seemed tailor-made, a solitary eyebrow of hope was thus raised.

'You should know that the gig is based in south Wales and that they are looking to leave the money in their local economy. You won't get a look-in if not based there.'

Then why advertise on a .com anything? Shove it in the local press, ffs. I just hung up.

To 2026...