Working as a contractor in 2025: what’s in store?

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Working as a contractor in 2025: what’s in store?

The past four years have been incredibly eventful for those who chose to go the contract work route. From a surge in demand for short-term workers or freelancers, fuelled by the COVID-19 pandemic, to the rise of the gig economy as well as the significant impact of the ‘return-to- office’ trend, contract workers have experienced both highs and lows. But what does 2025 have in store?

“When the pandemic and its associated lockdowns were in full swing,” says Jamie Fourie, Talent Acquisition Specialist at Strider Digital, “contractors quickly became a hot commodity as businesses implemented hiring freezes and turned to more flexible, temporary solutions for their project and operational needs. Contractors were also popular due to their ability to operate optimally while working remotely, whereas many permanent staff struggled with the challenges of adapting to working from home.”

The gig economy

While the pandemic certainly accelerated the trend of temporary and more flexible jobs, this movement began in the early 2000s, particularly during the global recession. Now known as the gig economy, this shift, characterised by short-term contracts or freelance work as opposed to permanent jobs, was largely driven by heightened economic uncertainty.

“For many, the decision to become a contractor was a critical one, due to a company closure or a redundancy,” explains Fourie. “But for others, it became an opportunity to change things up, offering autonomy and flexibility. The idea of not being tied down to one employer can be highly exciting as it often opens up a wide range of diverse options for gaining experience across different projects, businesses and even industries.”

Back to the office 

But as the Covid years came to an end, the business world embraced yet another big shift – the return-to-office movement. What started as a largely hybrid arrangement, with a mix of in-office and work-from-home days, has now shifted to a full, five-day-a-week return to the office.

“The move back made a lot of sense for many businesses, particularly those with large office spaces sitting empty,” says Fourie, “also those who were concerned that company and team culture were being negatively impacted by remote work.”

Contractors, in general, were never expected to be office workers, so this shift back to in-person meetings and the like has created a few hurdles. Many employers began expecting their contractors to observe in-office days, which isn’t always feasible due to factors like the proximity to the office and the need to service other clients.

“The bigger issue is that some employers began questioning the need for contractors,” says Fourie. “Now that full-time employees can be hired without concerns about budget or uncertainty, employers are weighing the pros and cons of contractors versus permanent staff more critically, often leaning toward permanent staff for reasons related to company culture and longevity.”

2025 and beyond

Just because demand for contractors has slowed since the advent of COVID-19 doesn’t mean that contracting as a career choice is any less lucrative. The biggest difference now is that experience, specialised skills and knowledge of specific projects or tasks have become, and will continue to be, more important for employers looking to bring contractors on board.

“The tech, digital-orientated and design sectors have always been major users of contract professionals, and this trend is here to stay,” says Fourie. “Project-based employment will always be a fixture in our ever-changing job market, but it’s crucial for contractors in 2025 and beyond to better market themselves.”

Word of mouth may have worked in the past, but the months and years ahead will require contractors to focus on their profiles and find more innovative ways to market themselves effectively. Building and maintaining a strong professional network will be crucial for keeping work flowing in and establishing an iron-clad reputation in their chosen industry.

“My final piece of advice for contractors is to set clear career goals and milestones that will guide your contracting journey. In the past, it may have been possible to float from one contract to the next effortlessly, but now it’s more important than ever to seek out contracts that not only offer growth opportunities but also help you line up your next one,” says Fourie.

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