South East – UK Regional Labour Market Trends, May 2025
South East Leads the UK in White-Collar Hiring Growth
Key findings include:
- Professional vacancies in the South East forecast to grow by 14.6% in 2025
- The region accounts for 17.6% of all UK white-collar roles
- Engineering and operations roles rise sharply, while IT softens slightly
- Construction and industrial sectors lead hiring growth
- BAE Systems and RSK report the strongest employer-level surges
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Regional Overview: Momentum With Moderation
The South East of England is beginning 2025 in firm shape. Professional vacancies are projected to grow by 14.6% compared to the previous year, taking the total to just under 79,000 roles. This places the region ahead of the national trend and solidifies its role as a structural pillar of the UK’s white-collar labour market. Straddling London’s financial orbit and the industrial infrastructure of the South Coast, the region has once again become a preferred base for companies seeking skilled hires.
Short-term indicators also tell a bullish story. Job vacancies rose by 25% between the final quarter of 2024 and the first quarter of 2025. April saw the highest monthly volume, with postings up by more than a third from a year earlier. Even February, typically subdued, held steady. The broader economic context is improving as well. Inflation has begun to ease, interest rates have stabilised at 5.25%, and measures outlined in the Autumn Statement are beginning to materialise, particularly in infrastructure and skills investment. The hiring data suggests that employers are responding with cautious optimism.
Shifting Skills: Engineering and Leadership Ascend
While information technology remains the dominant professional field, its growth is beginning to slow. Vacancies are projected to rise by 9.8% this year, yet the sector’s share of total hiring is edging downwards. Firms appear to be tilting toward more operational and hybrid roles, as business models evolve post-pandemic.
Engineering is on the rise, with vacancies forecast to grow by 24.8%. The jump mirrors heightened investment in energy infrastructure and industrial capacity. Sales and marketing are also rebounding. Sales roles are set to rise by 21.7%, with business development up nearly 25%. Operations management stands out with a 62.9% increase, reflecting a renewed focus on mid-level leadership.
Some sectors are treading water. Real estate hiring is effectively flat, held back by elevated borrowing costs and a slower pace of planning approvals. Even so, estate agency roles are set to grow by almost 14%. Software engineering is holding steady, growing at 12.5%, while inside sales and account management are projected to expand by around 19%.
Sector Performance: Bricks, Machines and Mission-Driven Work
Real estate and construction remain the region’s largest source of professional employment. The sector is forecast to grow by 17.9% this year, powered by commercial development, housing demand and government incentives linked to brownfield regeneration.
Industrials and engineering are not far behind. The sector is projected to expand by 37.6%, bolstered by clean energy commitments and advanced manufacturing activity along the Oxford to Cambridge corridor. Not-for-profit organisations are also returning to growth. Following a muted year in 2024, the sector is expected to grow by 24.7%, supported by a mix of grant funding and philanthropic recovery.
Technology continues to grow, albeit more slowly. Its projected 3.3% increase lags behind the regional average. Retail and consumer goods, meanwhile, are rebounding strongly. Hiring in the sector is expected to grow by 37.7% as firms move to rebuild logistics, digital, and customer-facing capacity.
Corporate View: Divided Trajectories
The region’s largest employers are moving in different directions. BAE Systems is projected to increase professional hiring by 138.6%, a reflection of rising defence budgets and geopolitical uncertainty. RSK, an environmental consultancy, is also scaling rapidly with growth of 88.7%. ServiceNow continues its upward trajectory with a 29.2% rise in roles, while the AA is experiencing a notable rebound, more than doubling its hiring plans.
By contrast, Spicerhaart Group is expected to reduce hiring by almost a third. The decline reflects broader stagnation in residential property markets. Cambridge University Press and Assessment remains a bright spot, posting 61.5% growth and underlining the region’s role in education and publishing.
Technology, media and telecoms remain a strong presence, although their overall share of the market is shrinking as other sectors catch up. Public sector and not-for-profit roles are expected to grow by 24%, while healthcare hiring is forecast to contract slightly by 0.9%, as the sector enters a more stable post-pandemic phase.
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