North East – UK Regional Labour Market Trends, June 2025
North East Labour Market Rebalances in 2025
Key findings include:
- Professional vacancies in the North East are set to rise by 9.2% in 2025, reaching 8,546 roles.
- Construction, engineering and public sector hiring are driving regional momentum.
- Tech and financial services are forecast to contract, suggesting a sectoral rebalancing.
- Leading employers such as Balfour Beatty and Northumbrian Water are significantly expanding headcount.
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Resilient Growth Across the North East
The North East is poised for measured growth in 2025, with professional vacancies projected to increase by 9.2%. This reflects cautious optimism among employers as inflation eases and national hiring sentiment stabilises. While the region accounts for just under 2% of total UK vacancies, it is carving out a niche as a hub for targeted sector-led expansion. Infrastructure investment, regional funding initiatives, and the maturing of devolution deals are supporting this trend. Vacancy volumes surged in April, suggesting that momentum is building as firms return to long-term planning and delivery.
Skills Demand Shifting Towards Delivery
Hiring patterns in the North East reveal a realignment of workforce priorities. Demand is rising in technical and delivery-focused professions: construction roles are up 17.7%, engineering by 16.2%, and sales by 28.8%. IT roles are shrinking overall, but software development and infrastructure remain resilient. Meanwhile, real estate is cooling, likely due to high interest rates. Sales and marketing roles are rebounding after a muted 2024, especially among SMEs. The figures suggest a pivot from overhead-heavy functions to skillsets that deliver immediate operational value, as companies tighten budgets but push forward with strategic execution.
Industry Momentum Driven by Infrastructure
Real estate and construction is forecast to be one of the North East’s most active hiring sectors in 2025, with vacancies rising by 18.7%. Industrials and engineering are also accelerating, backed by the region’s role in clean energy and advanced manufacturing. By contrast, tech vacancies are set to fall 2.3%, and financial services are expected to contract sharply by 28.9%. Consumer goods, however, are bouncing back strongly, growing by over 60%. These shifts reflect broader macroeconomic pressures and the maturing of digital hiring cycles, as capital flows towards physical delivery and essential services.
Employers Lead the Regional Revival
The region’s largest employers are adjusting their strategies. Balfour Beatty is nearly tripling its headcount, and Northumbrian Water is expanding by over 80%. AECOM and Labcorp are also hiring aggressively. Conversely, Turner & Townsend and Virgin Money are scaling back. These employer-level moves reveal how the North East is becoming increasingly shaped by infrastructure, utilities, and engineering. With the general election approaching, policy clarity on energy, housing, and public works could further accelerate this shift. The North East may not dominate national figures, but it is quietly becoming one of the UK’s most strategically aligned regions.
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