For much of the past two years, recruitment leaders have been waiting for convincing signs of recovery. August brings some of the clearest yet.
Hiring intentions are strengthening, vacancy levels are rising and investment across technology, construction, engineering, Life Sciences, energy and infrastructure is creating new demand.
This is not a broad-based recovery, and growth will not return everywhere at the same pace. But the direction of travel is becoming clearer.
The latest REC JobsOutlook shows improving intentions across both permanent and temporary recruitment, while the REC Labour Market Tracker reports active vacancies up 9.2% month-on-month and newly advertised roles up 30.8%.
Investment is another important signal.
More than £3 billion is being invested into UK Life Sciences, with plans expected to support around 66,000 additional jobs by 2035. Construction is showing renewed momentum, while continued investment in energy networks, AI infrastructure, data centres and logistics property points to sustained demand for technical and specialist talent.
Bullhorn’s latest UK&I outlook also shows improving recruitment activity, particularly across technology, engineering and manufacturing.
The message for recruitment leaders is simple: stop waiting for the whole market to recover.
Instead, identify where investment is flowing, where skills shortages are emerging and which clients are preparing for growth.
The recruitment businesses that spot those opportunities early and align their consultants and business development activity accordingly will be best positioned to benefit.
MARKET SIGNALS BEHIND THIS VIEW
(click bold headings to learn more)
£3bn Life Sciences investment and new Jobs Plan
More than £3 billion of public and private investment is supporting long-term growth in UK Life Sciences, with around 66,000 additional jobs expected by 2035.
Construction company announces recruitment of 30,000 people during 2026
A major construction business has announced plans to recruit 30,000 people globally during 2026, including around 2,700 UK roles.
Ofgem acts to free grid capacity for data centre projects
Measures to remove speculative projects from the grid queue could help accelerate investment across data centres, energy and infrastructure.
National Grid expands investment to support AI infrastructure
National Grid Ventures has announced $1.75 billion of investment in electricity infrastructure supporting AI development and hyperscale data centres.
Prologis and SEGRO logistics property deal
The proposed £14.3 billion acquisition reinforces continued confidence in logistics property, industrial infrastructure and data centre development.
Bullhorn UK&I Hiring Outlook
Recruitment activity continues to improve, with strength particularly visible across technology, engineering and manufacturing.
REC JobsOutlook: Hiring intentions improve
Permanent and temporary hiring intentions strengthened, with medium-sized employers showing particularly positive expectations.
Lloyds Business Barometer
Business confidence reached a four-month high, with improving trading expectations and stronger optimism among internationally focused businesses.
UK Construction PMI
Construction activity returned to growth, supported by improving client confidence, stronger order books and increased infrastructure activity.
REC Labour Market Tracker: Vacancy growth accelerates
Active UK job postings increased by 9.2% month-on-month, while newly advertised vacancies rose by 30.8%.
✅ Missed the last Greenshoots Live session?
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Next month, we’ll be sharing more practical insight from across the Talence world, including fresh thinking on AI, leadership, and what meaningful change in recruitment really looks like. We’ll also be spotlighting upcoming events, podcast conversations, and more tools and ideas designed to help recruitment leaders stay ahead with confidence.
Ready to take the next step? Explore the Talence podcast for practical insight, browse our blogs for fresh thinking on recruitment, leadership, and AI, follow us on LinkedIn for regular updates, and take our diagnostic to see where your business stands today and where the biggest opportunities may lie.
Warm regards;
Ian Knowlson
Director, Talence
