UK Infrastructure Industry Predictions For 2026 And What It Means For Jobs And Hiring

Key takeaway: The UK construction and infrastructure sector is poised for modest but meaningful growth in 2026, with total output expected to rise by approximately 2.8% according to the Construction Products Association. After a challenging 2025 marked by higher borrowing costs and political uncertainty, the industry is finally shifting into forward gear, creating significant implications for recruitment and talent acquisition strategies.

What is driving UK infrastructure growth in 2026?

Multiple sectors are converging to push infrastructure output higher in 2026. The Construction Products Association forecasts infrastructure growth of roughly 3.9% to 4.4%, supported by major transport, energy and utilities programmes across the UK.

The new UK Infrastructure Pipeline outlines around £530 billion of public and private projects over the next decade. This includes substantial commitments in transport, energy, health, education and digital infrastructure, creating a solid foundation for civil engineering, utilities, highways and rail work.

Which major infrastructure projects are driving recruitment demand in 2026?

Several landmark infrastructure projects are creating substantial recruitment requirements across the UK in 2026. HS2 continues to generate significant demand for civil engineering professionals, tunnelling specialists and project management expertise, particularly in the West Midlands and London regions.

National Highways' Road Investment Strategy 2 includes major upgrades to strategic road networks, requiring highway engineers, traffic management specialists and construction professionals. Projects like the A66 Northern Trans-Pennine upgrade and Lower Thames Crossing are creating sustained demand for experienced infrastructure talent.

The energy transition is driving unprecedented investment in renewable infrastructure. Offshore wind projects, grid reinforcement programmes and battery storage facilities require electrical engineers, marine specialists, project developers and construction managers with energy sector experience.

Water company Asset Management Plan 7 (AMP7) and preparations for AMP8 are sustaining demand for water engineers, process specialists and environmental professionals. Thames Tideway Tunnel and similar wastewater infrastructure projects continue to require tunnelling expertise and civil engineering talent.

How are transport infrastructure projects affecting hiring needs?

Transport infrastructure represents one of the most significant drivers of recruitment demand in 2026. Rail electrification programmes, station upgrades and network enhancements create ongoing requirements for rail engineers, signalling specialists and project managers with rail sector experience.

Regional transport authorities are advancing major schemes including metro extensions, light rail projects and bus rapid transit systems. Manchester's Bee Network expansion, West Midlands Metro extensions and similar regional schemes require transport planners, civil engineers and construction professionals.

Port and airport infrastructure upgrades to support trade and connectivity post-Brexit continue to generate specialist recruitment needs. These projects require logistics specialists, marine engineers and professionals experienced in complex operational environments.

What role do energy and utilities projects play in infrastructure recruitment?

Energy and utilities represent the fastest-growing segment of infrastructure recruitment in 2026. The UK's commitment to net zero by 2050 is driving unprecedented investment in energy infrastructure, creating sustained demand for specialist professionals.

Offshore wind capacity expansion requires marine engineers, offshore construction specialists, electrical engineers and project managers with renewable energy experience. Major projects in the North Sea and Celtic Sea are creating regional centres of recruitment demand.

Grid reinforcement to accommodate renewable energy requires high-voltage electrical engineers, substation specialists and project professionals. National Grid's £60 billion investment programme through to 2030 creates consistent recruitment needs across transmission and distribution networks.

Nuclear new build programmes including Sizewell C and small modular reactor development require nuclear engineers, safety specialists, project controls professionals and construction managers with nuclear sector experience. These long-duration projects create sustained recruitment pipelines rather than short-term peaks.

Why does housing recovery matter for recruitment alongside infrastructure?

Whilst infrastructure projects dominate the recruitment landscape in 2026, private housing recovery provides important complementary demand. Private housing is expected to grow by around 4% in 2026 as mortgage rates edge downward and consumer confidence stabilises.

The housing recovery will translate into more sites restarting and renewed appetite for both site labour and site management roles. However, the scale of recruitment demand from housing remains secondary to the sustained requirements from major infrastructure programmes.

How significant is the infrastructure pipeline for talent acquisition?

The infrastructure sector remains the anchor of the UK construction industry. With £530 billion of projects planned over the next decade, the demand for skilled professionals will remain consistently high.

This creates ongoing requirements for civil engineering professionals, project managers, groundworks specialists and plant operators. The breadth of projects spanning transport, energy, utilities and digital infrastructure means recruitment needs will be diverse and sustained rather than concentrated in a single subsector.

What is happening in industrial and logistics construction?

Industrial output could grow by approximately 2% to 3% in 2026, following strong increases in 2025 tied to warehousing, manufacturing upgrades and energy projects. Shifts in manufacturing, e-commerce and energy transition continue to support this sector.

Energy and water workloads remain robust in RICS surveys, reflecting ongoing investment in networks, renewables and resilience. This translates into continued demand for steelwork, concrete, mechanical and electrical specialists, fit-out professionals and specialist trades around data centres, distribution hubs and advanced manufacturing plants.

Why should recruitment professionals focus on repair and maintenance work?

Repair, maintenance and improvement work has quietly become one of the most important pillars of UK construction. With many major new-build schemes delayed, work on existing assets is keeping firms busy and creating consistent recruitment demand.

Government forecasts point to RM&I growing by around 2.5% in 2026. Within that, energy efficiency upgrades, fire safety remedial work and small-scale refurbishments are likely to stay strong.

Key takeaway: RM&I is labour-intensive, which tends to support consistent demand for multiskilled trades, small works supervisors and site managers comfortable managing fast-turnaround programmes. This creates opportunities for recruitment agencies to build long-term relationships with clients who need reliable, flexible staffing solutions.

What are the commercial sector opportunities in 2026?

The commercial picture remains mixed, with office and retail new-build still affected by hybrid working patterns and changing consumer behaviour. However, refurbishment and repositioning of existing commercial assets is creating a growing niche.

Regional cities with strong university, life sciences or tech clusters are still seeing selective investment. Fit-out, refurbishment and change-of-use specialists can expect a busier 2026 than 2024 to 2025, even if headline new building announcements remain relatively limited.

How do you prepare your recruitment strategy for 2026 infrastructure growth?

Successful talent acquisition in 2026 requires a structured approach that anticipates demand before it peaks. Follow these steps to position your recruitment strategy effectively:

1. Analyse your client base by sector to identify which will benefit most from the predicted growth in major infrastructure, energy and utilities work, with secondary attention to housing and industrial projects.
2. Map current skills shortages against projected demand, focusing particularly on infrastructure project managers, civil engineers, electrical engineers, quantity surveyors, planners and health and safety professionals with major projects experience.
3. Build talent pools in advance for infrastructure-specific specialisms including tunnelling, rail systems, offshore construction, high-voltage electrical work and water engineering alongside traditional trades.
4. Develop relationships with training providers and apprenticeship schemes to create a pipeline of emerging talent, as experienced professionals become increasingly scarce.
5. Create flexible staffing solutions that allow clients to scale up quickly when projects commence, particularly for temporary labour on live sites.
6. Establish clear communication channels with clients about their 2026 project pipelines, enabling you to anticipate workforce requirements before competitors.
7. Invest in employer branding initiatives that help clients attract talent in a competitive market where the best candidates have multiple options.

What are the persistent skills shortages affecting infrastructure hiring?

The Construction Industry Training Board expects UK construction output to grow by around 2.1% per year on average through to 2029. However, the infrastructure sector will struggle to find enough specialist professionals even with this moderate overall growth rate.

CITB estimates that hundreds of thousands of additional workers will be needed by the middle of the decade to deliver projected workloads. Infrastructure projects face particularly acute shortages due to the specialist nature of many roles and the long lead times required to develop relevant experience.

Key takeaway: Persistent shortages exist in infrastructure project managers, civil engineers with major projects experience, electrical engineers specialising in high-voltage or renewable systems, tunnelling specialists and rail engineers. Quantity surveyors, planners and health and safety professionals with infrastructure sector experience face ongoing pressure. Specialist trades including high-voltage electrical work, tunnelling operatives, piling and deep foundations, marine construction and specialist groundworks remain extremely difficult to source.

What challenges might recruitment professionals face in 2026?

• Several factors could dampen the predicted growth and complicate recruitment strategies. Slower than expected interest rate cuts could keep financing costs high for developers and housebuilders, delaying projects and reducing hiring needs.
• Further tax or spending changes in response to wider economic conditions represent another risk. The Office for Budget Responsibility has already trimmed UK GDP growth expectations for 2026 to around 1.4%, which could impact construction activity.
• Delivery risks around the Infrastructure Pipeline persist if planning, consenting or funding bottlenecks are not addressed. Ongoing uncertainty around major schemes can affect regional supply chains even when smaller projects remain healthy.
• Material pricing has moderated from double-digit inflation, but costs have settled at a higher base level than pre-COVID. For 2026, the most likely scenario includes more stable material pricing with selective pressure on specialist products, whilst labour remains the main inflation driver on many projects.

What are the best practices for infrastructure recruitment in 2026?

Successful recruitment in the infrastructure sector requires adapting to the specific challenges of 2026's market conditions. Implement these actionable strategies:

• Build proactive talent pipelines: Do not wait for job orders to start sourcing candidates. Maintain ongoing relationships with passive candidates who might be open to opportunities when the right project emerges.
• Specialise in high-demand infrastructure roles: Focus your recruitment efforts on the persistent shortage areas such as infrastructure project managers, civil engineers, electrical engineers, tunnelling specialists and rail professionals where competition for talent is fiercest.
• Offer market intelligence to clients: Position yourself as a strategic partner by sharing insights about wage inflation, availability of specific skills and competitor hiring activity in their sector.
• Develop flexible staffing solutions: Create options for clients including temporary labour for project peaks, temp-to-perm arrangements that reduce hiring risk and managed services for larger workforce requirements.
• Emphasise speed and reliability: In a market where projects are finally moving forward after delays, clients will value recruitment partners who can deliver qualified candidates quickly without compromising on quality.
• Invest in candidate experience: The best professionals have multiple options in a tight labour market. Ensure your recruitment process is professional, communicative and respectful to maintain a strong reputation.

The Impact on Hiring

The 2026 infrastructure predictions create profound implications for how companies approach recruitment and talent acquisition. Understanding these dynamics is essential for both employers and recruitment professionals.

Wage pressure and retention challenges

With persistent skills shortages across experienced professionals and core trades, wage pressure will remain elevated in the most in-demand roles. This makes workforce planning a critical board-level issue rather than something handled ad hoc.

Employers cannot simply rely on recruiting new talent. Retention strategies become equally important, including competitive compensation, clear career progression, training opportunities and positive workplace culture. Recruitment agencies can support this by helping clients benchmark their offerings against market standards.

The value of specialist recruitment partners

Many companies emerging from the challenging 2024 to 2025 period have reduced internal recruitment capacity. As projects accelerate in 2026, they will lack the infrastructure to scale hiring quickly.

Specialist construction and infrastructure recruiters provide several critical advantages. They maintain ready-made talent pools of qualified candidates, reducing time-to-hire when projects commence. They understand the technical requirements of roles and can effectively assess candidate suitability. They have market intelligence about wage rates, availability and competitor activity that internal teams cannot easily replicate.

Temporary versus permanent hiring strategies

The modest but meaningful growth predicted for 2026 creates uncertainty about whether demand will be sustained. Many contractors are planning selective growth with careful risk management rather than rapid expansion.

This environment favours flexible staffing solutions. Temporary labour allows companies to scale up for specific projects without long-term commitments. It provides a trial period to assess candidates before permanent offers. It offers financial flexibility when project timelines or scope remain uncertain.

Recruitment agencies specialising in both temporary and permanent placements can help clients develop hybrid strategies. This might include a core permanent team supplemented by temporary specialists for project peaks or specific technical requirements.

Employer branding in a competitive market

The best site managers, project managers, engineers and commercial staff will have multiple opportunities in 2026. Companies that have not invested in employer branding will struggle to attract top talent even when offering competitive compensation.

Recruitment partners can support employer branding by clearly articulating what makes a company an attractive employer. This includes project diversity, training opportunities, company culture, career progression and work-life balance. Agencies with strong reputations can also lend credibility to lesser-known clients by endorsing them to candidates.

Early workforce planning

The companies that will succeed in 2026 are those planning their workforce needs now rather than reacting when projects commence. This includes identifying likely pressure points, securing key hires ahead of time and establishing relationships with recruitment partners who understand their business.

Recruitment agencies can facilitate this through regular strategic conversations with clients about their project pipelines. By understanding what work is likely to commence and when, agencies can proactively source candidates and reduce the lag between project start and workforce availability.

Regional variations in demand

Infrastructure growth will not be evenly distributed across the UK. Regional cities with strong university, life sciences or tech clusters will see different demand patterns than areas focused on housing or traditional infrastructure.

Recruitment strategies must account for these regional variations. Agencies with national networks can redeploy talent to areas of highest demand. They can also help clients understand local market conditions, including wage expectations and availability of specific skills in different regions.

Infrastructure project mobility and workforce planning

Major infrastructure projects create unique recruitment challenges due to their scale, duration and geographic concentration. A single large project can absorb dozens or hundreds of specialist professionals, creating localised talent shortages and wage inflation.

Successful recruitment strategies must account for project mobility patterns. Infrastructure professionals often move between major projects as phases complete, creating predictable talent flows. Agencies that track project timelines can anticipate when experienced professionals will become available and match them to emerging opportunities.

Multi-year infrastructure programmes also create opportunities for career development and retention. Candidates increasingly value projects offering long-term stability and the chance to see major schemes through from inception to completion. Recruitment partners can emphasise these aspects when marketing opportunities to candidates weighing multiple options.

Technology and modern recruitment methods

The infrastructure sector has traditionally been slower to adopt technology in recruitment processes. However, the 2026 market will reward those who use modern methods effectively.

This includes applicant tracking systems that manage high-volume recruitment, video interviewing that reduces time-to-hire for geographically dispersed candidates, social media and digital marketing to reach passive candidates and data analytics to track recruitment metrics and identify improvement opportunities.

Recruitment agencies investing in these technologies can offer more efficient service to clients whilst improving the candidate experience. This creates competitive advantage in a market where speed and quality both matter.

Frequently Asked Questions

What is the main driver of infrastructure job growth in 2026?

The £530 billion UK Infrastructure Pipeline over the next decade is the primary driver, with approximately 3.9% to 4.4% growth expected in infrastructure output during 2026. This includes major transport, energy, utilities and digital projects requiring diverse skilled professionals and trades.

Which roles will be hardest to fill in 2026?

Infrastructure project managers, civil engineers with major projects experience, electrical engineers specialising in high-voltage or renewable systems, tunnelling specialists and rail engineers face the most persistent shortages. Quantity surveyors, planners and health and safety professionals with infrastructure experience also remain extremely difficult to source.

How can companies prepare for infrastructure hiring in 2026?

Companies should analyse their project pipelines now, identify likely workforce pressure points and establish relationships with specialist recruitment partners. Building talent pools in advance, offering competitive compensation and creating flexible staffing solutions will be essential for success.

Why should companies use specialist recruiters for infrastructure hiring?

Specialist recruiters maintain ready-made talent pools, understand technical role requirements, provide market intelligence about wages and availability and can scale hiring quickly when projects commence. They offer expertise that reduced internal recruitment teams cannot easily replicate.

What infrastructure sectors will see strongest recruitment demand in 2026?

Transport infrastructure including HS2, National Highways programmes and rail electrification will drive substantial demand. Energy and utilities projects including offshore wind, grid reinforcement and water infrastructure create the fastest-growing recruitment requirements. Nuclear new build and renewable energy projects generate sustained long-term hiring needs.

TL;DR Summary

• UK infrastructure output is forecast to grow by approximately 2.8% in 2026, with infrastructure specifically growing 3.9% to 4.4%, driven by a £530 billion project pipeline over the next decade.
• Major infrastructure projects including HS2, National Highways programmes, offshore wind developments, grid reinforcement and water infrastructure are creating sustained recruitment demand for specialist professionals across transport, energy and utilities sectors.
• Persistent skills shortages will affect infrastructure project managers, civil engineers, electrical engineers, tunnelling specialists, rail professionals and specialist trades, keeping wage pressure elevated despite only modest overall output growth.
• Infrastructure projects dominate the recruitment landscape, with complementary demand from private housing recovery of around 4% and industrial growth of 2% to 3% creating selective opportunities across multiple sectors.
• Specialist recruitment partners provide critical advantages including ready-made talent pools, market intelligence, technical expertise and the ability to scale hiring quickly as projects accelerate after a challenging 2024 to 2025 period.