Construction hiring regained momentum in the second quarter of 2026, with vacancies increasing despite wider weakness in the UK jobs market, although employers continue to face rising employment costs and persistent skills shortages.
New figures from job board CV-Library show there were 88,357 construction and real estate vacancies between April and June, up 3.3% from the previous quarter and 1% higher than a year earlier. The sector was one of only a handful to record quarterly growth, while UK job postings overall fell by 1.3%.
The strongest growth came at the end of the quarter. Construction vacancies rose 17.5% between May and June to 32,795, an 8.6% increase on June 2025, suggesting employers accelerated recruitment heading into the summer after a more subdued spring.
The data also reflects a broader improvement in the labour market. Across all sectors, UK vacancies increased by 21% in June to their highest level since October 2023, while more than half (51%) of employers surveyed by CV-Library expect to increase headcount over the next six months.
Significant recruitment challenges
However, employers continue to face significant recruitment challenges. Half of businesses said it is harder to find suitable candidates than a year ago, with shortages of workers possessing the right skills remaining a key concern – an issue that continues to affect the construction industry.
Employment costs are also weighing on recruitment. Almost two-thirds (62%) of employers reported that the cost of employing staff has increased over the past year, with rises in national insurance contributions identified as the biggest single factor. Meanwhile, advertised salaries increased by just 2.3% year-on-year.
Lee Biggins, chief executive and founder of CV-Library, said June’s rebound could indicate improving confidence, but warned that employers still faced significant headwinds.
“Businesses still face rising employment costs, the impact of the Employment Rights Bill, ongoing skills shortages and wider economic uncertainty,” he said. “If June’s uplift in job postings can be sustained into the third quarter, and cost pressures begin to ease, we could finally see a longer-term upturn in the job market.”
Buoyant outlook for construction
Separate research from ManpowerGroup points more broadly to improving employer confidence. In its latest Employment Outlook Survey, construction and real estate employers reported a net employment outlook of 43% for the third quarter of 2026, making it the second strongest-performing sector behind information technology.
Across all industries, 49% of employers expect to increase staffing levels during the quarter, contributing to the UK’s highest hiring outlook in more than a year. The UK now ranks fourth globally for hiring intentions, behind India, Puerto Rico, the US and Brazil.
ManpowerGroup UK managing director Michael Stull said businesses were beginning to move beyond months of uncertainty.
“Although hiring will not be on a mass scale, it is encouraging to see employers showing a greater willingness to recruit,” he said.
The survey also suggested employers are continuing to invest in new entrants, with 47% expecting to recruit for entry-level positions over the next quarter, offering a potential boost to efforts to tackle youth unemployment while helping address longer-term workforce shortages.
