According to the 2025 IPA Agency Census, IPA member agencies employed 24,963 people on 1^st September 2025, down from 26,787 in 2024.

The decline was driven by a contraction in creative and other non-media agencies, where employment fell by 14.3% from 14,775 in 2024 to 12,659 in 2025. In media agencies, however, employment increased by 2.4%, up from 12,012 to 12,304.

There was a large decline in the number of employees aged 25 and under – dropping by almost a fifth ( 19.2%) in one year, according to the research ( 3,632 to 2,936 ).

This aligns with other findings from the census on entry-level recruitment – under half ( 43.4%) of responding agencies reported employing graduate trainees, apprentices or school leaver apprentices – down from 56% the previous year.

Reported employee vacancies also dropped considerably year-on-year, with agencies reporting 680 open roles (across all levels of seniority), down from 1,149 in 2024 – a decrease of 40.8%.

Around a quarter of agencies who participated ( 24%) claim they expect to reduce their workforce in the next 12 months as a direct result of AI, with 8% reporting having done so in the 12 months prior to the survey.

Alongside the headline findings on a shrinking workforce, the census also found some evidence of increased progress on gender and ethnicity representation – women now hold more than 40% of C-level roles for the first time, accounting for 40.8% of senior positions, up from 39.9% in 2024, while among agencies reporting ethnicity data, 25.5% of employees identified as being from a non-white background, up from 23.9% in 2024.

Paul Bainsfair, director general, IPA, said: “This year’s Census reflects an industry making important progress on gender and ethnic representation, while facing some hard truths about the shape of its workforce. Headcount is down, churn is up and the steep fall in entry-level roles raises real questions about future capability, particularly as AI reshapes skills and ways of working.

“Keeping talent pipelines open, including making far better use of apprenticeships and the Apprenticeship Levy, is no longer optional. Agencies that continue to invest in early careers, skills development and retention will be best placed to build resilient businesses and a workforce fit for the future.”

The results showed the pressures agencies have faced, with higher turnover and lower retention resulting in teams being stretched, said Leila Siddiqi, director of diversity and inclusion, IPA. She added: “It’s a reminder of the importance of supporting wellbeing and building trust. At the same time, exceeding 40% women in C-suite roles and the continued progress on entry-level diversity shows what is possible when inclusion is prioritised.”

Siddiqi said: “As AI reshapes the industry, agencies must ensure their teams can apply both technical and human skills in ways that protect creativity and foster diverse perspectives. Continuing to invest in a diverse mix of trainees, graduates and apprentices is essential to safeguarding the innovation and inclusivity that will shape the future of our industry."

Methodology

The 2025 IPA Agency Census was undertaken using an online questionnaire among 201 corporate member agencies between September and November 2025. The questionnaire asked agencies to supply data that was representative of the organisation as of 1st September 2025. Full census returns were received from agency groups and individual agencies representing 88% of the estimated employed base of all IPA members. Only agencies in IPA membership as of 1st September 2025 are included in the analysis.