South West – Regional Labour Market Trends
South West hiring rises 7.9%, returning close to recent peak
Key findings include:
- Hiring rose by 7.9% at the start of 2026, returning close to peak levels seen last year
- Full-year growth is forecast at 4%, lagging behind faster-expanding regions
- Demand is shifting towards IT, engineering and sales roles, while construction and marketing decline
- Sector growth is led by technology and industrials, while real estate and retail remain under pressure
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Recovery underway, but growth remains measured
Hiring conditions in the South West have improved at the start of 2026, though the pace remains controlled. Vacancies rose by 7.9% compared to the previous quarter, returning close to levels seen at the start of 2025. This suggests demand has stabilised, with employers resuming hiring where required rather than expanding broadly.
Activity strengthened towards the end of the quarter, with March rising by 19.9% month-on-month, reflecting delayed hiring decisions following budget resets. Despite this improvement, full-year growth is expected to reach just 4%, indicating a market that is stable but not accelerating.
Demand focuses on technical and commercial roles
Hiring is becoming more targeted, with demand concentrated in roles that support revenue and operations. IT vacancies are forecast to rise by 15.1%, increasing their share to over 20%, reflecting continued investment in digital capability. Engineering roles are also expanding, with demand rising by 9.0%.
Commercial functions are seeing the strongest growth. Sales vacancies are expected to increase by 18.2%, with business development rising by 26.8% and account management by 41.4%, highlighting a focus on revenue generation.
In contrast, construction is declining slightly, while real estate is expected to fall by 13.7% and marketing by 17.3%.
Growth shifts towards technology and industrial sectors
Sector performance highlights a clear rebalancing. Technology, Media and Telecoms roles are forecast to grow by 39.6%, while technology roles alone are expected to rise by 60.0%, reflecting strong demand for digital transformation.
Industrials are also expanding, with vacancies increasing by 21.6%, supported by infrastructure and manufacturing activity. Engineering-related sectors continue to grow steadily, reinforcing this trend.
By contrast, real estate and construction are expected to decline by 8.5%, while professional services will fall by 10.1%. Retail is also under pressure, declining by 16.3%, reflecting weaker consumer demand.
Hiring becomes concentrated among key employers
Recruitment activity is increasingly driven by a smaller group of employers. AECOM is expected to increase hiring by 15.1%, while Kier Group is forecast to grow by 65.9%, reflecting project-driven demand in infrastructure.
However, not all firms are expanding. Turner & Townsend is projected to reduce hiring by 37.9%, highlighting the impact of project cycles.
Elsewhere, the National Trust is expected to double hiring, rising by 110.0%, while BT is forecast to decline by 15.2% as restructuring continues. The result is a more competitive market shaped by individual employer strategies rather than broad-based growth.
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