3 minutes
Why strategic recruitment matters in the current construction market
The UK construction industry has entered 2025 facing a slow start. Project starts are down. Investment is slowing. Market confidence is tentative. But within this volatility lies an opportunity, and the most successful construction businesses will be the ones who rethink their recruitment strategy now to stay ahead of the curve.
Where there is challenge, there is also opportunity – especially when you have the right people in place to adapt and deliver.
Here's what the data is telling us, and how we're helping businesses respond.
What’s Really Going On?
While raw index values may give the illusion of sector stability, seasonally adjusted data paints a more sobering picture — especially across the residential and non-residential markets.
Residential Sector:
- The value of work starting on-site in the three months to March 2025 fell 19% compared to the preceding quarter
- Starts are 16% below the same period in 2024
- Private housing starts declined 11% quarter-on-quarter, and 9% year-on-year
- Social housing starts plummeted, down 15% since the last quarter and 20% lower than 2024
Non-Residential Sector:
The broader non-residential market showed mixed results:
- Community & amenity builds were one of the few bright spots, increasing 5% from the previous quarter and 1% from 2024
- Industrial project starts dropped 28% quarter-on-quarter and 7% year-on-year
- Health sector construction down 35% since last quarter and 36% vs 2024
- Retail starts fell 34% and 37% respectively
- Office builds saw a small uptick of 3% vs 2024, but declined 8% from Q4
- Hotel & leisure projects down 30% quarter-on-quarter, and 28% vs 2024
- Education sector starts declined 24% this quarter, and 39% year-on-year
These sharp downturns, especially in sectors traditionally seen as reliable, demand more strategic workforce planning. Companies can’t afford to carry overheads, but equally can’t afford to stall when opportunity knocks.
What does it mean?
With many developers holding back or downsizing projects, teams are getting smaller - but expectations haven’t dropped. It’s now about doing more with less, and hiring candidates who can adapt, innovate, and deliver efficiently.
At ER Recruitment, we understand that during tougher market periods, it’s not just about us filling your jobs – it’s about placing the right people in critical roles to keep momentum going.
The right talent for the right build
We've seen a real shift in the kind of candidates our clients are looking for. As projects become more complex and budgets more constrained, the emphasis is firmly on:
- Multi-skilled professionals who can wear multiple hats
- Experienced site managers and quantity surveyors who can deliver value for money
- Health & safety leads ensuring tighter compliance amid rising regulations
- Planners and estimators who can drive smarter, more strategic builds
We’re proud to already support firms like Scope Construction, a valued client in the construction space. Director, Maz Patel shares:
"Like all contractors we have felt the impact of a slow start to the year in Q1, particularly for larger residential schemes which are struggling with viability in current market conditions. However, 2025, looks much better than 2024, with three significant projects starting on site in Q1/Q2 and April has seen a noticeable increase in tenders particularly in minor works schemes below £1m. We anticipate a significant increase in the volume of these for Q3 and Q4, and remain optimistic about an upsurge in affordable housing in the later part or the year and early 2026. All this means that rather than scaling back we expect to be recruiting later in the year"
Why construction firms are partnering with ER Recruitment
With deep experience recruiting in the East Midlands construction sector – we’re helping firms future-proof their workforce, even during periods of economic uncertainty.
We’re working with market leaders to build careers and support businesses with insight-led recruitment strategies.
Let’s continue to build together
If you’re planning to explore how recruitment can work harder for your business, ER Recruitment is ready to support you. Get in touch to find out more.
