The UK labour market remains historically tight but shows signs of cooling. According to ONS, job vacancies declined for the 36th consecutive quarter between April–June 2025, falling by 56,000 to 727,000, a 7.2% drop. That’s 143,000 fewer vacancies year‑on‑year and below pre‑pandemic levels by 8.6%.
The unemployment‑to‑vacancy ratio rose to 2.3 unemployed per vacancy, up from around 1.7 a year ago, indicating a shift towards a more balanced market.
Average earnings grew by around 5% annually in March–May 2025, with slightly stronger gains in the public sector (5.5%) compared to private (4.9%).
Construction Sector: M&E Building Services
While the wider construction market is facing headwinds, the Mechanical & Electrical (M&E) Building Services sector presents a more nuanced picture. Activity remains patchy in 2025, with major infrastructure and data centre projects helping to offset a broader slowdown in commercial and residential construction.
Demand for skilled M&E professionals remains strong, particularly in areas such as HVAC, building automation, and sustainable energy systems. Employers are actively seeking design engineers, commissioning managers, BIM coordinators, and project managers with experience on high-spec commercial or industrial builds. Green skills are especially in demand as projects shift toward low-carbon solutions and energy efficiency targets.
However, the talent pool is tightening. Many employers report difficulties filling roles due to a shortage of qualified candidates, with some turning to overseas recruitment or upskilling junior talent in-house. Modular and off-site construction methods are also reshaping skills demand, with a growing need for cross-disciplinary capabilities in digital design and prefabrication processes.
Wage pressure is growing, particularly in London and the South East, where competition for experienced staff is fierce. Contract and freelance roles remain attractive for professionals seeking flexibility and premium day rates.
For Candidates
- Specialise in sustainability: Skills in renewables, net-zero systems, and smart building tech increase marketability.
- Stay agile: Contractors with Revit/BIM fluency and strong compliance knowledge are being fast-tracked into leadership roles.
For Clients
- Plan ahead: Project delays are increasingly linked to M&E labour gaps—early engagement with recruiters and long-term workforce planning is key.
- Invest in training: Developing internal talent pipelines is critical to long-term delivery, particularly as the market shifts toward green building standards.
Legal Sector: Steady Recovery & Specialisation
In contrast, the in‑house legal market is enjoying a rebound. Q1 2025 saw a 20 % year‑on‑year rise in in-house legal vacancies, spanning permanent and interim roles from paralegals to general counsel. Regional hubs like Manchester, Birmingham, Leeds and Bristol are seeing growth in sectors such as fintech, healthcare and infrastructure, while London remains vigorous.
Trends in legal recruitment emphasise flexibility, diversity, well-being, and employer branding. Candidates are seeking firms with strong culture and modern work models. Additionally, emerging practice areas—M&A, ESG, data protection—are creating mid‑level openings as firms merge and expand.
For Candidates
- Target specialism: Mid‑career in-house or ESG/legal technology roles offer traction.
- Prioritize fit: Hybrid working and inclusive culture are increasingly important.
For Employers
- Improve branding & flexibility: Attract talent by clearly communicating values, career progression, and hybrid working policies.
- Define roles strategically: Focus on value-driven, efficient legal delivery as GCs demand more strategic collaborators.
Final Thoughts
As of summer 2025, the UK recruitment landscape shows diverging tales: construction faces contraction and uncertainty, while legal recruitment rebounds with specialised demand and cultural transformation. Candidates in construction should lean into niching and continuous learning. Legal professionals can leverage growing in‑house demand and evolving practice areas. For businesses, the message is clear: invest in skills, culture, flexibility, and branding to attract and retain the talent that will drive stability and growth.