APAC’s Contingent Workforce: Growth Trends and Challenges

Over the last five years, there has been significant disruptions across technological, geopolitical, and economic fronts, resulting in many changes within hiring. One notable shift is the rise of the contingent workforce, particularly in the APAC region. A study on contingent workforces by Data Intelo projects that the APAC region contingent workforce market valued at $120 billion, will be the fastest-growing region for temporary staffing in the coming years. This includes an expected CAGR of 6.3% between 2023 and 2032. 

Here’s what hiring a contingent workforce could look like:  

Imagine a regional FinTech company based in New Zealand launching a product across Southeast Asia. Instead of hiring permanent teams in each country, it taps into a network of project-based talent, such as developers in Vietnam, compliance specialists in Malaysia, or even digital marketers in Australia. This isn’t just a trend; it’s the new reality driving business agility and innovation across the region. 

But why are businesses increasingly turning to contingent workers? And why are skilled professionals opting for temporary or project-based roles? Let’s break it down. 

Why is APAC’s contingent workforce growing? 

Flexibility and agility in workforce planning

Organisational flexibility is a key factor driving the growth of contingent working in APAC.   Companies are increasingly using contingent workers to quickly scale teams up or down in response to shifting market demands and business cycles. 

According to the JIER APAC Contingent Workforce Report 2024, nearly 50% of organisations in Asia Pacific use contingent labour to address staffing shortages, and approximately 25% plan to increase their use of contingent workforce solutions. Notably, 48% of respondents rely on recruiting firms, particularly in the technology, financial services, and healthcare sectors, to meet their staffing needs. Companies are leaning on contingent talent to remain competitive and cost-efficient while ensuring operational continuity in a dynamic market environment. 

Addressing talent shortages and skills gaps 

A LinkedIn report indicates that 55% of recruiters in Southeast Asia noted difficulty finding candidates with suitable skills as a major challenge. Contingent workers allow organisations to fill critical roles on a project basis or address urgent skills needs without committing to permanent hires. This approach is particularly valuable in fast-evolving sectors, such as Information technology, BFSI and Healthcare, where high employee turnover and technological disruptions are common. 

Technological advancements and the gig economy

The growth of digital platforms and workforce management tools has made it easier for companies to access top contingent talent across borders. The gig economy is now a central part of talent planning. 

According to a 2024 BCG report, the APAC region accounts for 40% of the global gig economy. China, India, and Indonesia are major contributors, driven by digital adoption and a strong demand for flexible work. 

Evolving work preferences

A generational shift is underway. Younger workers, particularly Gen Z, across APAC are prioritising work-life balance, independence, and flexible arrangements. This cultural shift is fuelling the growth of the contingent workforce, as more young professionals embrace project-based or freelance roles. 

Staffing market maturity in APAC

The staffing or agency market penetration rate, representing the percentage of employed individuals working through staffing agencies, is a key metric for assessing the maturity of the temporary job market in APAC.  

APAC’s agencies work penetration rate averages at 2.1%, above the global average of 1.8%, Europe’s average of 2.0% and the Americas’ 0.8%. China and Japan, with 2.9% and Australia’s 2.5%, lead the region. 

Source: WEC, Eurostat, ILO

Complexity: The Hidden Challenge

While the growth drivers are evident, managing contingent talent in APAC is complex. The report “Most Complex Contingent Markets in APAC 2025” by Staffing Industry Analysts (SIA) highlights that market complexity varies widely across the region.

What is a complex market?

A complex market is characterised by a multitude of legal, economic, political, and structural obstacles that make establishing and maintaining a contingent workforce challenging, thereby increasing the difficulty of workforce planning.

As per SIA, complexity is assessed across 12 criteria, including staffing market maturity, independent contractor usage, regulatory frameworks, business laws, pricing environments, economic uncertainty, labour shortages, governance quality, technology infrastructure, and human capital. These factors determine how easily employers can set up and manage contingent workforce programs.

Complex markets for a contingent workforce in APAC

Least complex:

Singapore, New Zealand, Australia – These countries offer favourable business conditions, adaptable regulations, mature staffing sectors, and advanced digital infrastructure. Ideal for launching regional initiatives and innovation hubs.

Moderately complex:

China, Japan, Hong Kong, Indonesia, Malaysia, South Korea, Taiwan and the Philippines – These rapidly evolving markets demand customised strategies tailored to changing regulations and labour trends within specific industries.

Most complex:

Vietnam, Thailand, India– These countries offer scale and specialised talent but are challenging due to strict labour laws, staffing market maturity, inconsistent regulations, and governance issues. Success requires deep local knowledge and regulatory compliance.

 High Growth Markets: 

India, Thailand, China, Malaysia, the Philippines and Indonesia – These countries experiencing rapid growth in contingent workforce adoption, However, evolving regulations, skills gaps, demographic shifts, and compliance challenges make workforce management complex in each country.

Turning complexity into opportunity

A data-backed, curated contingent workforce strategy is the key to winning in APAC’s thriving yet complex market.

Success requires a tailored approach, and each market demands its own playbook. In high-complexity environments, compliance expertise and local partnerships are essential. Partnering with experienced staffing firms helps mitigate risk, streamline operations, and ensure legal compliance. Additionally, investing in digital workforce management tools bridges infrastructure gaps and enhances sourcing, onboarding, and overall talent management.

With advanced market intelligence , data-driven location analysis, and deep regional expertise, Robert Walters helps clients understand the talent landscape to customise workforce strategies and ensure compliance across locations. Our contingent workforce solutions enable employers to access top talent, manage risk, and unlock value - regardless of market complexity.