The number of employees in the member agencies of the Institute of Practitioners in Advertising (IPA) fell over the past year, even as gender and ethnic representation continued to improve, according to the Institute of Practitioners in Advertising (IPA).
The IPA said in its 66th annual IPA Agency Census 2025 this reduction was driven by a considerable contraction in creative and other non-media agencies, where employment fell by 14.3 percent from 14,775 to 12,659.
By contrast, employment in media agencies increased by 2.4 percent, rising from 12,012 to 12,304.
Other Key Findings
The decline in employment was more pronounced among part-time employees, men and those aged 25 and under.
Full-time staff numbers fell by 6.7 percent, from 25,065 to 23,396, while part-time roles declined by 9 percent to 1,567.
The number of men employed fell by 7.3 percent year on year to 10,820, while the number of women employed decreased by 6.2 percent to 13,966. In overall percentage terms, men comprised 43.3 percent of employees and women 55.9 percent.
Numbers of employees aged 25 and under declined by 19.2 percent from 3,632 to 2,936. This shift contributed to an increase in the average employee age, rising from 35.2 years in 2024 to 35.6 years in 2025.
Staff turnover increased across IPA member agencies in the 12 months to 1 September 2025, while staff retention declined.
Overall turnover rose to 24.8 percent, up from 24.1 percent in 2024, and increased from 21.2 percent to 24.2 percent when redundancies were excluded. Turnover in creative and other non-media agencies rose to 27.6 percent, while turnover in media agencies fell to 21.7 percent.
Overall staff retention declined to 68.6 percent, down from 74.9 percent in 2024. Where detailed data was available, resignations accounted for 58.5 percent of departures, with redundancies responsible for 14.3 percent.
Reflecting the overall reduction in workforce size, reported employee vacancies fell considerably.
Agencies reported 680 open roles across all levels of seniority, down from 1,149 in 2024, a decrease of 40.8 percent. Vacancies declined by 47.2 percent in creative and other non-media agencies and by 34.7 percent in media agencies.
Progress continued in senior gender representation
Women now hold more than 40 percent of C-suite roles for the first time, accounting for 40.8 percent of senior positions, up from 39.9 percent in 2024. In creative and other non-media agencies, women’s C-suite representation rose to 39.7 percent, while in media agencies it increased to 42 percent.
Ethnic diversity improvesÂ
Among agencies reporting ethnicity data, 25.5 percent of employees identified as being from a non-white background, up from 23.9 percent in 2024 and more than four times the level recorded in 2007. Representation was highest at entry level, with 45.5 percent of trainees and apprentices and 36.8 percent of juniors and executives from non-white backgrounds. At C-suite level, non-white representation increased to 12.7 percent, up from 10.5 percent.
Gender and ethnicity pay gaps narrower
Based on those who supplied gender and salary data, women represent 58.2 percent of employees but receive 52.9 percent of salaries, resulting in a gender pay gap of 19.5 percent, down slightly on 19.7 percent in 2024. The gender pay gap was wider in creative and other non-media agencies at 22.6 percent than in media agencies at 16.6 percent. Employees from non-white backgrounds account for 22 percent of employees and receive 18.5 percent of salaries, with the ethnicity pay gap falling to 19.4 percent, down considerably from 31 percent in 2024. The ethnicity pay gap remains higher in media agencies at 26.3 percent than in creative and other non-media agencies at 12.3 percent.
Non-White Women Lead in C-Suite
At the C-suite, women from non-white backgrounds account for 7 percent, while men from non-white backgrounds account for 6 percent. Within the highest level of this C-suite category (Chair/CEO/MD), this figure stands at 7 percent for women from non-white backgrounds and 4 percent for men from non-white backgrounds.
Hybrid working remains the normÂ
Some 70.7 percent operate a three-day office and two-day remote working model, although most agencies mandate at least some office-based working days.
Graduate recruitment declined in 2025
Just 43.4 percent of responding agencies reported employing graduate trainees, apprentices or school-leaver apprentices, down from 56 percent in 2024. At 60.6 percent, media agencies were considerably more likely to employ graduates and apprentices than creative and other non-media agencies.
Apprenticeship Levy funds underused
It is estimated that over 85 percent of levy funds paid by submitting agencies remain unused by those agencies. Media agencies spent 20.2 percent of their levy funds on apprentice training, compared with 9 percent among creative and other non-media agencies.
AI increasingly shaping agency operations
Overall, 88.3 percent of agencies reported that AI is having a considerable impact on how they work. While 8 percent of agencies reduced their workforce in the past 12 months as a direct result of AI, 24 percent expect to do so in the next 12 months, with expectations of workforce reduction higher among creative and other non-media agencies (30 percent) than among media agencies (10 percent).
Disability Reporting Still Limited
Just over half (52 percent) of responding agencies reported that they recorded registered disability, while 45 percent did not. A further 3 percent did not know. Among the 51 agencies that recorded registered disability, 3 percent of their employees were identified as being disabled.
