UK Construction Industry News
July 2026 Construction Market Update
UK construction activity, recruitment trends and the sectors showing the strongest resilience.
The UK construction market continues to present a mixed picture as we move through the second half of 2026. Recent output figures show growth over the latest three-month period, although monthly activity remains uneven and confidence varies considerably between sectors.
In this update, Saxon Chase looks at the latest market figures, where activity is proving most resilient, the ongoing demand for skilled people and what employers should consider when planning current and upcoming projects.
The Market at a Glance
|
38.4
June Construction PMI
|
1.6%
Three-Month Output Growth
|
41,200
Extra Workers Needed Each Year
|
The PMI figure relates to June 2026. Output figures cover the three months to May 2026. The workforce forecast covers 2026 to 2030.
Construction activity remains mixed
The S&P Global UK Construction PMI increased slightly from 38.2 in May to 38.4 in June. A reading below 50 still indicates contraction, but the rise suggests that the pace of decline eased slightly during the month.
The latest Office for National Statistics figures provide a more balanced view. Total construction output grew by 1.6% in the three months to May 2026, marking the third consecutive increase in the three-month series. New work increased by 1.1%, while repair and maintenance rose by 2.1%.
The wider picture is improving, but month-to-month activity remains changeable and employers are continuing to plan carefully.
Where is work proving most resilient?
Performance continues to differ between sectors. Private commercial new work was the largest positive contributor within new work during the three months to May, growing by 4.0%. Non-housing repair and maintenance also performed strongly, increasing by 3.0%.
| Commercial | Private commercial new work has recently been one of the stronger contributors to construction output. |
| Infrastructure | Long-term programmes continue to support opportunities across transport, civil engineering and major public projects. |
| Utilities and Energy | Water, energy, data and decarbonisation programmes continue to create demand for specialist skills. |
| Refurbishment and Fit Out | Repair, maintenance, retrofit and fit out activity remain important sources of work while some clients delay larger new-build commitments. |
Recruitment demand remains a long-term priority
Market uncertainty has not removed the industry’s longer-term workforce challenge.
CITB forecasts that UK construction will require an average of 41,200 additional workers every year between 2026 and 2030. That is around 206,000 workers over the five-year period, reflecting both future demand and the need to replace people leaving the industry.
Roles regularly required across the market include:
| ✓ Site and Project Managers | ✓ Quantity Surveyors |
| ✓ Engineers | ✓ Groundworkers |
| ✓ Bricklayers and Carpenters | ✓ Electricians and Plumbers |
| ✓ Painters and Decorators | ✓ Technical and Clerical Staff |
What does this mean for employers?
The figures show why employers need to look beyond a single headline. Overall output has increased across the latest three-month period, but monthly construction output fell by 0.8% in May. This means workloads can change quickly and conditions may be very different between sectors, regions and individual projects.
For employers, early workforce planning remains important. Waiting until a project is about to begin can reduce the available talent pool, particularly when several nearby projects are competing for the same experienced people.
Employers should consider:
Planning labour and management requirements ahead of project start dates
Reviewing possible skills gaps before workloads increase
Acting promptly when suitable candidates become available
Maintaining contact with a recruitment partner that understands their sector
Preparing contingency cover for absences, delays and unexpected increases in workload
What does this mean for jobseekers?
Although market conditions are mixed, experienced construction professionals remain valuable to employers delivering live and upcoming projects.
Candidates can strengthen their position by keeping qualifications, references, availability and contact details up to date. Being ready to respond quickly can make a significant difference when suitable temporary, permanent or freelance opportunities become available.
Are You Looking for a New Recruitment Partner?
Whether you are expanding your workforce, replacing key staff or preparing for upcoming projects, Saxon Chase provides temporary, permanent and freelance construction recruitment support across the UK.
Speak to our team about trades and labour, site management, technical, engineering, commercial and clerical recruitment.
Saxon Chase Recruitment Ltd
Call: 01543 886228
Out of hours: 07527 578872
Email: luke@saxonchase.com
Sources:
S&P Global UK Construction PMI, June 2026.
Office for National Statistics, Construction output in Great Britain: May 2026, released 16 July 2026.
CITB Construction Workforce Outlook 2026–2030.
