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Growth is returning - but not everywhere at once

There are encouraging signs that parts of the UK economy are regaining momentum. October’s Lloyds Business Barometer recorded a six-point rise in confidence to 47%, while the final services PMI reached an eight-month high of 52.8. More importantly for recruiters, services firms reported rising employment for the first time since September 2024. These are not signs of a broad-based recruitment boom, but they do suggest that employers with growing order books are beginning to invest in people again. [1][2]

The picture is uneven. The November KPMG/REC Report on Jobs, covering October, records renewed falls in permanent placements and temporary billings. Yet the overall decline in vacancies was the smallest in more than two years; six of ten permanent job categories recorded rising demand, led by IT and computing and engineering. For recruiters, the priority is to identify where investment and skills shortages are converging, rather than waiting for the whole market to recover. [3]

Five investment and job-creation stories to watch

1 | Rolls-Royce: £2.5bn next-generation jet-engine programme

A government–Rolls-Royce agreement sets out a ten-year £2.5bn programme to develop advanced aircraft engines in Britain. It is expected to support 3,300 existing jobs by 2029, with the potential for substantial new employment over subsequent decades. The immediate opportunity for recruiters is in aerospace engineering, advanced materials, electronics, manufacturing technology and specialist supply chains. Importantly, the headline longer-term job potential is conditional on the programme’s success, not an immediate hiring commitment. [4]

Source: UK Government, 28 October 2026 - Read original story

2 | Scotland: £350m subsea cable factory opens at Nigg

Sumitomo Electric’s new high-voltage subsea cable facility represents £350m of investment and is creating 200 jobs while safeguarding hundreds more. The plant strengthens the UK supply chain for electricity transmission and offshore energy. Recruiters specialising in electrical engineering, production, quality, maintenance and energy infrastructure should monitor both direct recruitment and contractor demand throughout the supporting supply chain. [5]

Source: UK Government, 22 October 2026 - Read original story

3 | Airbus: 480 high-value jobs at Broughton in 2026

Airbus is converting its former A380 wing facility at Broughton into an A321 production line to support a substantial aircraft order backlog. The company reports around 480 new jobs at the site during 2026, including 250 in the refurbished factory. This is tangible evidence of continuing demand for skilled manufacturing talent in North Wales and the wider aerospace supply chain. [6]

Source: Airbus, 21 September 2026 - Read original story

4 | National Wealth Fund: £15.4bn boost to support around 100,000 jobs

The October Budget allocated an additional £15.4bn to the National Wealth Fund, which estimates that its planned investment could create or support around 100,000 jobs by 2035–36. Priorities include defence, critical minerals, AI supply chains, clean energy and advanced manufacturing. The package also includes £2bn for an Energy Wealth Fund and support for the Strategic Sites Accelerator, with over £700m in financing. For recruiters, these are significant medium-term opportunities across engineering, infrastructure, digital, project delivery and specialist technical skills. The jobs estimate is a projection, not confirmed vacancies.

Source: National Wealth Fund, 28 October 2026 - Read original statement

5 | Industrial skills: apprenticeships and construction placements

The government and employers have outlined plans for 22,400 new under-25 apprenticeships each year in professional and business services, alongside 40,000 construction placements annually. While placements and apprenticeships must not be confused with permanent vacancies, they indicate a growing commitment to skills pipelines. Recruitment businesses can add value through workforce planning, early-careers recruitment, assessment and long-term talent communities. [8]

Source: UK Government, 19 October 2026 - Read original story

Four core indicators: what the latest evidence tells recruiters

1 | Lloyds Business Barometer - confidence improves

Overall confidence climbed six points to 47% in October, well above its 30% long-term average. Trading prospects rose to 55% and economic optimism to 40%. Hiring and investment intentions also improved. This is a leading indicator of employer appetite, rather than proof that vacancies have already recovered. [1]

2 | S&P Global UK PMI - services hiring returns

October’s final services PMI increased to 52.8 from 52.1 in September. The employment component moved back above the 50 threshold for the first time since September 2024, while the composite PMI reached 52.9. Growth in sales pipelines, including work associated with AI investment, gives recruiters a credible reason to reopen conversations about workforce capacity. [2]

3 | KPMG/REC Report on Jobs - fewer placements, better vacancy trend

The October survey, published on 9 November, recorded the first fall in permanent placements in four months and the first decline in temporary billings since March. Nevertheless, the rate of decline in overall vacancies eased to its slowest since August 2024, and temporary worker demand rose fractionally. Demand for permanent IT, engineering, construction and accounting/finance talent improved. Recruiters should distinguish improving demand signals from actual placement growth. [3]

4 | Construction PMI - infrastructure pockets outperform housing

The construction PMI fell to 43.6 in October, with residential activity particularly weak at 35.1. However, respondents reported opportunities in data centres, energy networks and utilities, while civil engineering recorded its slowest rate of contraction since May 2025. This is a market for selective niche positioning, not blanket expansion across all construction disciplines. [9]

Sector Growth Watch

TECHNOLOGY & AI  |  Permanent IT and computing vacancies led the REC’s monitored categories. The services PMI also identified AI-related spending as a source of new work. Focus on commercially funded implementation, data, cyber and infrastructure roles rather than speculative AI hiring. [2][3]

ENGINEERING & ADVANCED MANUFACTURING  |  Aerospace investment, the Broughton production expansion and subsea cable manufacturing create identifiable employer and supply-chain targets. Develop technical talent pools ahead of new project milestones. [4][5][6]

ENERGY, UTILITIES & DATA CENTRES  |  Construction activity remains weak overall, but data-centre projects and power networks are relative bright spots. Prioritise electrical, commissioning, controls, project management and specialist contracting. [5][9]

PROFESSIONAL & BUSINESS SERVICES  |  REC data showed improved permanent demand in accounting and finance, while employers’ apprenticeship commitments point to longer-term workforce development. Recruiters can differentiate through talent mapping and early-career solutions. [3][8]

REGIONAL OPPORTUNITIES  |  London and the North of England registered modest permanent placement growth in October, while the North also saw temporary billings rise. These variations underline the importance of local market intelligence and targeted business development. [3]

What recruiters should do now

First, build a shortlist of employers and supply chains where investment is already committed or projects are moving into delivery. Second, talk to decision-makers about workload, capacity and skills bottlenecks before asking about vacancies. Third, develop specialist candidate communities in engineering, energy, digital and business-critical disciplines. Finally, use AI to improve market intelligence, sourcing and consultant productivity-but keep the commercial focus on solving employers’ problems.

The opportunity in November is not to declare the downturn over. It is to recognise that confidence, business activity and specialist demand are improving in selected markets, and to act earlier and more intelligently than competitors.

Sources and verification

[1] Lloyds Banking Group, Business confidence rises as economic optimism increases, 30 October 2026.

[2] Reuters / S&P Global, UK services growth hits eight-month high in October, 4 November 2026.

[3] REC / KPMG / S&P Global, Report on Jobs: October data, published 9 November 2026.

[4] UK Government / Rolls-Royce, 28 October 2026.

[5] UK Government / Sumitomo Electric, 22 October 2026.

[6] Airbus, Broughton investment, 21 September 2026.

[7] National Wealth Fund, Statement on Budget and additional capitalisation, 28 October 2026 - Original source

[8] UK Government, Industrial Strategy Jobs Plans, 19 October 2026.

[9] ConstructUK / S&P Global, Construction PMI October, 5 November 2026.

Source: Lloyds - Read original story

Source: Reuters / S&P Global - Read original story

Source: REC - Read original story

Source: Construction PMI - Read original story