Midlands – UK Regional Labour Market Trends, March 2025
Key findings include:
- The Midlands has witnessed a notable decline with 9.0% drop in overall vacancies
- East Midlands: Real Estate & Construction emerged as a key growth sector, 16% increase
- West Midlands: Professional Services expanded by 22.6%
- Aecom, a prominent Real Estate and Construction player, led the region a 27.1% increase
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Between 2023 and 2024, professional vacancies in the Midlands fell by 9.0%, far exceeding the UK’s national decline of 1.5%. The West Midlands was hit hardest, down 11.7%, while the East Midlands saw a 4.9% drop. This sharper regional contraction reflects broader economic pressures, including the closure of high street retailers like WHSmith and a slowdown in investment for university spinouts. Many startups have relocated to London or the South East, accelerating a loss of high-skilled roles. Despite positive news such as DHL’s £230 million Coventry hub, logistics growth hasn’t offset declines in finance and professional services. Reversing this trend will require coordinated efforts in skills, infrastructure, and regional investment.
Real Estate & Construction emerged as a key growth sector
The East Midlands job market in 2024 reflected the UK’s wider economic divides, with strong gains in tech and construction offset by deep losses in retail and public sector roles. Consumer Goods and Services—still the region’s largest employer—fell by 33.9%, driven by shifting consumer habits and high street closures like WHSmith. In contrast, tech roles surged by 43.2%, reinforcing the region’s growing digital economy, while Real Estate and Construction rose 16%, buoyed by urban regeneration. IT remained central despite a 16.2% drop, leading January 2025 vacancies with 221 roles. HR roles saw the steepest fall at 19.8%. Regional recovery hinges on digital skills, infrastructure investment, and sector diversification.
Professional Services expanded, reflecting Birmingham’s rise
The West Midlands labour market in 2024 showed a mixed picture, with strong growth in construction and professional services contrasting with notable declines in retail and industry. Real Estate and Construction led regional hiring in January 2025, making up 19.6% of vacancies—driven by infrastructure investment in Birmingham and Coventry. The sector grew 9% over the year, mirroring national housing trends. Professional Services expanded by 22.6%, reflecting Birmingham’s rise as a legal and financial hub. Tech also performed well, with 15.8% of vacancies, while Consumer Goods and Services fell by 27.6% amid inflation and shifting habits. Manufacturing declined 13.9%, while IT and engineering roles dipped, though demand remained high. Targeted investment is essential to rebalance the region’s employment outlook.
Aecom, a prominent Real Estate and Construction player leads the region
The Midlands job market in early 2025 reflects contrasting hiring patterns across sectors. Aecom led regional recruitment in January with 54 vacancies, marking a 27.1% annual rise driven by infrastructure and urban development. Turner & Townsend posted steady growth in engineering roles, up 5.6%, though the industrial sector expanded more modestly. Real estate hiring surged, with Spicerhaart Group increasing vacancies by 66%, highlighting strong housing demand. In contrast, the insurance sector saw NFU Mutual’s postings fall 28.4%, despite ongoing demand in financial roles. Retail showed a sharp divide—Frasers Group’s vacancies dropped 46.6%, while Boots grew 46.3%, indicating resilience in health-focused retail. Sector-specific pressures and investment trends continue to shape regional hiring.
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