The UK construction industry has faced a challenging period, with rising costs, economic uncertainty and delayed projects continuing to affect activity across the sector.
However, Glenigan’s latest Winter 2026 UK Construction Forecast suggests that a recovery could be on the horizon, with increased infrastructure investment, public sector developments and improving private sector confidence expected to support growth from 2027.
With construction activity expected to increase, what could this mean for temporary recruitment and the demand for skilled workers?
Construction Activity Expected to Recover from 2027
According to Glenigan’s latest forecast, the value of underlying construction project starts is expected to decline by 13% in 2026, before increasing by 11% in 2027 and a further 7% in 2028.
The decline in 2026 reflects the challenges facing the industry, including higher borrowing costs, inflation and uncertainty surrounding future investment.
These pressures have led some developers to delay or reconsider projects, particularly within private housing and industrial construction.
However, the outlook for 2027 and 2028 is more positive, with public sector investment and a gradual recovery in private development expected to create new opportunities across the industry.
While the recovery is unlikely to happen overnight, increased project activity could have a significant influence on how construction businesses plan and manage their workforce requirements.
Infrastructure Investment Could Increase Demand for Skilled Workers
One of the strongest areas of predicted growth is civil engineering.
Glenigan forecasts that civil engineering project starts will increase by 11% in 2027 and 10% in 2028, following a 9% decline in 2026.
Investment in water infrastructure, renewable energy, electricity networks and other major developments is expected to support this recovery.
As these projects progress, contractors may require additional workers with specialist skills and experience to support different stages of construction.
This could create further opportunities for civil engineering operatives, groundworkers, plant operators and other skilled trades.
However, workforce requirements can vary significantly depending on the size, duration and stage of a project.
Temporary recruitment could therefore play an important role in helping contractors access suitable workers when additional labour is required, without committing to permanent increases in their workforce.
Public Sector Developments Could Create Further Employment Opportunities
Public sector investment is also expected to contribute to the industry’s recovery.
Glenigan predicts that education construction starts will increase by 9% in 2027, while healthcare construction starts are forecast to grow by 11%.
Programmes such as the School Rebuilding Programme and New Hospital Programme are expected to support this growth as more developments progress to site.
For construction businesses, an increase in public sector projects could create additional demand for workers across a range of trades and specialisms.
However, as projects progress through different construction phases, the number of workers required may change.
Having access to a flexible workforce could help contractors respond to these changing requirements while maintaining productivity and keeping projects on schedule.
Could a Construction Recovery Increase Demand for Temporary Recruitment?
Although Glenigan’s forecast indicates a positive outlook for construction activity, economic uncertainty remains a challenge.
Rising material costs, borrowing pressures and changing project timelines mean businesses may continue to approach recruitment cautiously.
Rather than expanding permanent teams immediately, some contractors may look towards temporary workers to manage fluctuating workloads and support projects as they progress.
Temporary recruitment can provide several benefits, including:
- Workforce flexibility: Access to additional workers when project requirements increase or change.
- Specialist skills: The ability to source candidates with relevant experience, qualifications and certifications for specific roles.
- Support with project deadlines: Additional labour to help businesses maintain productivity during busy periods.
- Managing workforce costs: The flexibility to adjust staffing levels in line with project requirements.
As construction activity begins to recover, recruitment agencies could also play an important role in helping businesses prepare for potential increases in labour demand.
Building relationships with suitable candidates and understanding the skills required for upcoming projects could help contractors respond more effectively when new opportunities arise.
Preparing for the Future of Construction Recruitment
While Glenigan’s forecast provides an encouraging outlook for 2027 and 2028, the recovery is expected to be gradual, and workforce demand will continue to vary across different sectors.
For contractors, planning ahead and identifying potential skills gaps could become increasingly important as more projects progress to site.
Similarly, for workers, a recovery in construction activity could create new opportunities to gain experience, develop specialist skills and secure employment across a wider range of projects.
At Net Temps, we understand that workforce requirements can change throughout a project’s lifecycle.
Our specialist construction recruitment consultants work closely with clients to understand their requirements and connect them with suitable candidates across a range of trades, skills and experience levels.
Whether businesses are preparing for upcoming developments or require additional workers to support existing projects, our team can help source temporary, permanent and freelance labour to meet their workforce needs.
As the industry prepares for a potential recovery, having access to the right people at the right time could be an important factor in keeping construction projects moving.
Preparing for your next project? Our team can help you find the right people to meet your workforce requirements. Get in touch today on 0115 940 0968.
Source: Glenigan – Winter 2026 UK Construction Forecast, 2027–2028
