North – UK Regional Labour Market Trends, October 2025
Construction and Retail Lead Hiring Growth in Northern England
Key findings include:
- Northern England records a 6.9% annual rise in professional vacancies
- Construction and executive roles drive demand in the North East
- North West sees sharp uplift in leadership and digital hiring
- Yorkshire’s retail and housing sectors fuel regional employment growth
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Northern employment market enters recovery phase
Professional recruitment across the North is firmly in recovery, with vacancy volumes up 6.9% year on year. Q1 2025 marked a sharp rebound, reflecting renewed employer confidence following macroeconomic stabilisation. While hiring slowed mid-year, activity picked up again in early autumn, signalling sustained growth. Retail, construction and executive leadership are driving the trend, while sectors like banking remain under pressure. With the North accounting for 15% of all UK vacancies, regional performance is closely mirroring the national 7.2% growth average. The outlook for the rest of 2025 is optimistic, as businesses re-open recruitment pipelines and gear up for expansion.
North East rebounds on construction and operational leadership
The North East is gaining traction, driven by a surge in construction and executive roles. Demand for leadership within operations has climbed significantly, and construction management continues to recover, signalling confidence in infrastructure and housing pipelines. However, banking is facing contraction, with vacancies declining steeply due to ongoing sector consolidation. Real Estate and Construction now hold the largest share of regional hiring, with employers increasingly prioritising delivery over planning. The North East’s modest recovery reflects targeted investment, as firms expand cautiously but consistently in roles that underpin transformation and long-term regional development.
North West leads on digital and transformation hiring
The North West remains one of the UK’s most active hiring regions in 2025, with a sharp increase in executive and IT vacancies. Businesses are investing heavily in digital leadership, with IT development, management, and infrastructure roles all seeing double-digit growth. Retail and Consumer Goods is the standout sector, reflecting renewed consumer confidence and supply chain expansion. Construction recruitment remains steady, while legal hiring has contracted slightly. Overall, the North West is positioning itself as a transformation hub, with employers seeking strategic talent to drive performance, operational delivery and long-term growth in an increasingly competitive market.
Retail and construction lift Yorkshire’s hiring outlook
Yorkshire’s labour market is gaining momentum, underpinned by surging demand in retail and construction. Retail hiring is up sharply as high streets stabilise and logistics recover, while strong growth in construction points to renewed housing and infrastructure investment. Executive roles are climbing steadily, and technology and engineering remain consistent contributors to regional hiring. Legal and not-for-profit positions have softened slightly, but the broader picture is one of recovery. Employers across Yorkshire are prioritising roles tied to delivery and growth, with hiring focused on supporting commercial operations, regional expansion, and consumer-facing functions in a rebalancing economy.
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