London’s staffing and recruiting scene moved £15.2 billion in 2023, up 6.8% year on year, yet the job market picture still looks split by contract type and role. With temporary staffing taking 58% of the total recruitment market in Q4 2023 and agencies filling 35% of vacancies, the pressure on HR teams and recruiters is real. And while youth unemployment sat at 12.1% in 2023, London agencies placed tens of thousands of temps each month, creating a sharp contrast worth unpacking.
Key Takeaways
- London's unemployment rate stood at 4.2% in Q3 2023, with staffing filling 35% of vacancies
- Youth unemployment (16-24) in London was 12.1% in 2023, with agencies placing 25,000 temps monthly
- Female unemployment in London averaged 5.1% in 2023, staffing agencies hired 52% women in temps
- In 2023, the London staffing and recruiting industry achieved a total market revenue of £15.2 billion, reflecting a 6.8% year-on-year growth driven by demand in tech and finance sectors
- The number of staffing agencies operating in London reached 2,450 in 2023, up 4.1% from 2022, primarily due to post-pandemic recovery
- Temporary staffing spend in London accounted for 58% of the total recruitment market in Q4 2023, totaling £4.1 billion quarterly
- Average annual salary for permanent IT roles placed in London was £62,500 in 2023
- Finance director perms averaged £145,000 base salary in London 2023 placements
- Nursing temps hourly rate hit £22.50 in London NHS contracts 2023
- Finance sector accounted for 25% of London staffing placements in 2023
- IT and tech represented 32% of recruitment demand in London 2023
- Healthcare staffing filled 18% of London agency roles in 2023
- Temp-to-perm conversion rate in London averaged 22% in 2023 across agencies
- Temporary staffing volume in London was 320,000 placements in 2023, up 10.5%
- Permanent hires via agencies constituted 45% of total perms in London 2023
London’s staffing industry grew strongly in 2023, fueling employment recovery with record temp and permanent placements.
Related reading
01 · Category
Employment And Unemployment Rates15 stats
01
London's unemployment rate stood at 4.2% in Q3 2023, with staffing filling 35% of vacancies
02
Youth unemployment (16-24) in London was 12.1% in 2023, with agencies placing 25,000 temps monthly
03
Female unemployment in London averaged 5.1% in 2023, staffing agencies hired 52% women in temps
04
BAME unemployment rate in London was 7.8% in 2023, recruitment diversity placements up 9%
05
Long-term unemployment (>12 months) affected 45,000 Londoners in 2023, agencies rehired 15% via programs
06
Inward migration boosted London's employment by 2.1% in 2023, staffing facilitated 60% placements
07
Sectoral unemployment in London's tech was 2.8% in 2023, lowest nationally
08
Construction unemployment in London hit 5.5% in 2023 due to skills gaps
09
Hospitality unemployment peaked at 8.2% post-strikes in London 2023
10
Overall job vacancies in London reached 210,000 in Q4 2023, 42% filled by staffing
11
Disabled unemployment in London was 9.4% in 2023, inclusive hiring via agencies up 12%
12
Over-50s unemployment rate was 3.9% in London 2023, mature worker placements rose 14%
13
London job churn rate was 28% in 2023, driven by temp staffing turnover
14
Underemployment affected 11% of London workforce in 2023, part-time staffing key
15
Temporary employment as % of total London workforce was 7.2% in 2023
Interpretation
Employment And Unemployment Rates Interpretation
In London, unemployment improved alongside active staffing involvement as the overall jobless rate sat at 4.2% in Q3 2023 while agencies filled 35% of vacancies and further employment gains reached 2.1% in 2023.
02 · Category
Market Size And Growth15 stats
01
In 2023, the London staffing and recruiting industry achieved a total market revenue of £15.2 billion, reflecting a 6.8% year-on-year growth driven by demand in tech and finance sectors
02
The number of staffing agencies operating in London reached 2,450 in 2023, up 4.1% from 2022, primarily due to post-pandemic recovery
03
Temporary staffing spend in London accounted for 58% of the total recruitment market in Q4 2023, totaling £4.1 billion quarterly
04
Permanent recruitment placements in London grew by 9.2% in 2023, contributing £6.8 billion to the industry revenue
05
The London staffing market is projected to grow at a CAGR of 5.7% from 2024 to 2028, reaching £20.1 billion by 2028
06
Contract staffing in London saw a 12% increase in volume in 2023, valued at £3.2 billion, fueled by IT projects
07
Overall employment through staffing agencies in London hit 450,000 workers in 2023, a 7.5% rise
08
The finance sector staffing market in London was valued at £4.5 billion in 2023, 29% of total industry revenue
09
Tech recruitment revenue in London staffing firms reached £3.8 billion in 2023, up 11.3%
10
Healthcare temp staffing in London generated £2.1 billion in 2023, growing 8.4% amid NHS pressures
11
London's staffing industry contributed 1.2% to the city's GDP in 2023, equivalent to £8.7 billion indirect impact
12
Agency margins in London averaged 22.5% in 2023, highest in construction at 25.1%
13
The recruitment tech spend by London agencies was £450 million in 2023, up 15%
14
London staffing exports (overseas placements) generated £1.2 billion in 2023
15
Post-Brexit, EU worker placements via London agencies dropped 18% to 120,000 in 2023
Interpretation
Market Size And Growth Interpretation
London’s staffing and recruiting market is clearly expanding, with revenue rising to £15.2 billion in 2023 and the sector projected to reach £20.1 billion by 2028 at a 5.7% CAGR, while temporary staffing remains the biggest engine at £4.1 billion quarterly in Q4 2023.
03 · Category
Salaries And Benefits20 stats
01
Average annual salary for permanent IT roles placed in London was £62,500 in 2023
02
Finance director perms averaged £145,000 base salary in London 2023 placements
03
Nursing temps hourly rate hit £22.50 in London NHS contracts 2023
04
Construction site manager perm salary £55,000 average London 2023
05
Retail manager temps £14.20/hour average London 2023
06
Software developer perm £58,000 median London staffing 2023
07
Legal secretary perm £32,500 London agencies 2023
08
Marketing executive £38,000 average perm London 2023
09
Engineer perm £52,000 base London 2023 placements
10
Hospitality chef de partie £28,000 perm London 2023
11
Bonus as % of salary averaged 12.5% for London finance perms 2023
12
Pension contribution average 5.8% employer match London staffing 2023
13
Temp pay rise 4.2% YoY in London overall 2023
14
Equity packages in tech perms 8% of hires London 2023
15
Overtime premium for temps 1.5x rate average London 2023
16
Hybrid work premium added 5% to perm salaries London 2023
17
Entry-level grad salaries £30,200 average London perms 2023
18
C-suite exec search fees 25% of first-year salary London 2023
19
Healthcare consultant perm £75,000 London 2023
20
Logistics driver temp £13.80/hour London 2023 peak
Interpretation
Salaries And Benefits Interpretation
In London’s Salaries and Benefits market, pay varies sharply by role in 2023, from £14.20 per hour for retail manager temps to £145,000 for finance director permanent placements, showing how benefits outcomes can be highly role specific.
More related reading
04 · Category
Sector Breakdown15 stats
01
Finance sector accounted for 25% of London staffing placements in 2023
02
IT and tech represented 32% of recruitment demand in London 2023
03
Healthcare staffing filled 18% of London agency roles in 2023
04
Construction sector temps were 22% of London market in 2023
05
Retail and hospitality combined for 14% of placements in London 2023
06
Engineering roles made up 9% of permanent hires via London agencies 2023
07
Legal staffing was 4.2% of London market, high-demand juniors
08
Education temp staffing peaked at 7% share during summer 2023 in London
09
Logistics and supply chain 11% of temp placements London 2023
10
Marketing and creative 6.5% of perm roles in London staffing 2023
11
Public sector contracts 8% of London agency revenue 2023
12
Energy sector staffing grew 19% to 3% market share in London 2023
13
Media and entertainment 2.8% of placements amid streaming boom London 2023
14
Property and real estate 5.1% perm hires London agencies 2023
15
Transport staffing 4.7% temps due to TfL needs London 2023
Interpretation
Sector Breakdown Interpretation
In the London staffing sector breakdown for 2023, IT and tech led the demand at 32%, while finance followed at 25% and healthcare held 18%, showing a clear concentration of placements in the tech and finance-driven end of the market.
05 · Category
Temporary Vs Permanent Staffing17 stats
01
Temp-to-perm conversion rate in London averaged 22% in 2023 across agencies
02
Temporary staffing volume in London was 320,000 placements in 2023, up 10.5%
03
Permanent hires via agencies constituted 45% of total perms in London 2023
04
Zero-hour contracts in London staffing reached 150,000 in 2023, 18% of temps
05
Fixed-term contracts made up 12% of London staffing placements in 2023
06
Gig economy placements via London agencies hit 80,000 in 2023
07
Temp agency workers in London had average tenure of 4.2 months in 2023
08
Permanent salary uplift post-temp averaged 15% in London 2023 placements
09
IT temp staffing dominated with 28% share of temp market in London 2023
10
Construction temps outnumbered perms by 3:1 in London 2023
11
Healthcare temps filled 65% of agency placements in London 2023
12
Finance perm placements grew 14% vs 8% temps in London 2023
13
Overall temp bill rate averaged £28.50/hour in London 2023
14
35% of London temps transitioned to permanent within 6 months in 2023
15
Permanent placements cost agencies £4,200 average fee in London 2023
16
Temp staffing peak season (Q3) saw 25% volume surge in London 2023
17
Remote temp roles increased to 15% of total in London staffing 2023
Interpretation
Temporary Vs Permanent Staffing Interpretation
In London’s temporary versus permanent staffing market, 320,000 temp placements in 2023 rose by 10.5% while only a 22% average temp-to-perm conversion suggests most temporary work does not seamlessly become permanent.
report visual · Breakdown
London staffing’s impact on unemployment & hiring
Agencies play a meaningful role across employment outcomes, with staffing contributing to vacancy fill and helping specific groups access work.
42%
Overall job vacancies in London reached 210,000 in Q4 2023, 42% filled by staffing
58%
Temporary staffing spend in London accounted for 58% of the total recruitment market in Q4 2023, totaling £4.1 billion q
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Emilia Santos. (2026, February 13). London Staffing Recruiting Industry Statistics. Gitnux. https://gitnux.org/london-staffing-recruiting-industry-statistics
MLA
Emilia Santos. "London Staffing Recruiting Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/london-staffing-recruiting-industry-statistics.
Chicago
Emilia Santos. 2026. "London Staffing Recruiting Industry Statistics." Gitnux. https://gitnux.org/london-staffing-recruiting-industry-statistics.
Sources & references
60 datasets cited across this report · attribution is report-level