2026 - What Contractors Need to Know About Recruitment, Hiring and Workforce Trends

The UK construction sector steps into 2026 with a sense of steady confidence. After a tough 2025 marked by rising costs and stalled private development, early signs from the Office for National Statistics (ONS) and RICS point to a market that’s stabilising and slowly building momentum again. Infrastructure, public sector work and repair & maintenance are expected to lead the way in the first half of the year.

At Approach Personnel, we’re already seeing the impact of this shift on the ground. Contractors are gearing up for a busier year - but the labour market remains tight, compliance expectations are rising and workers are becoming more selective about where they go. Below is a clear breakdown of the key workforce trends shaping January 2026 and what they mean for your projects.

1. Skills Shortages Are Still the Industry’s Biggest Challenge

The Construction Industry Training Board (CITB) continues to highlight the scale of the skills gap. Even with a slight improvement in general labour availability, specialist and technical roles remain difficult to secure. Bricklayers, carpenters, plant operatives, groundworkers, surveyors, M&E specialists and retrofit qualified workers are all in high demand.

For contractors, this means planning ahead is essential. Securing the right people early, especially for long lead or infrastructure projects, will be key to keeping programmes on track.

2. Infrastructure Investment Will Drive Hiring Throughout 2026

Government infrastructure commitments are providing much needed stability. Major programmes in transport, utilities, energy transition, education and healthcare are expected to keep the sector moving. Build UK reports that infrastructure remains the strongest performing area heading into 2026.

This will naturally increase competition for skilled civils and engineering workers. Having a reliable labour partner who can supply compliant, pre vetted staff will make a real difference as demand ramps up.

3. Workers Are Becoming More Selective About Where They Go

ONS labour data shows a clear shift in worker expectations. After the uncertainty of 2025, candidates are prioritising stability, safety and long term prospects. They want consistent hours, reliable pay, well run sites and employers who invest in their people.

For contractors, this means employer reputation matters more than ever. Clear communication, strong site culture and visible commitment to safety and development will help you stand out in a competitive market.

4. Compliance and Competency Requirements Are Tightening

The Construction Leadership Council (CLC) and the Building Safety Regulator continue to raise the bar on competency and record keeping. Verified qualifications, up to date training and clear evidence of skills are becoming non negotiable, especially on public sector and safety critical projects.

This is increasing demand for workers with the right certifications and for labour partners who can guarantee full compliance. At Approach Personnel, this is an area we’re investing heavily in to support contractors through 2026.

5. Digital Skills Are Becoming Part of Everyday Construction Work

Digital adoption is accelerating across the industry. RICS and CITB highlight the growing importance of BIM, digital site management tools, data driven project controls and modern methods of construction (MMC). Even traditional roles now require a level of digital confidence.

This shift is creating new demand for digitally skilled supervisors, managers and technical staff. Upskilling existing teams will be a major advantage for contractors looking to stay competitive.

6. Repair, Maintenance & Improvement (RMI) Work Is Growing

The Federation of Master Builders (FMB) reports rising demand in the domestic RMI market, driven by energy efficiency upgrades, small refurbishments and general maintenance. This is creating more opportunities for multi trade operatives and increasing the need for flexible labour solutions.

Retrofit qualified workers, in particular, will be in strong demand throughout 2026.

What Contractors Should Prioritise in Early 2026

To stay ahead in a tightening labour market, contractors should focus on:

• Securing labour early for long lead and infrastructure projects

• Strengthening employer brand and worker experience

• Investing in training, upskilling and digital capability

• Building flexible staffing models to manage fluctuating workloads

• Staying ahead of evolving compliance and competency requirements

January 2026 could well signal turning point for UK construction. Activity is picking up, but the labour market remains competitive and compliance expectations are rising. Contractors who plan ahead, invest in their workforce and partner with reliable, people focused labour providers will be best positioned to succeed. Call us today for support with your hiring in 2026.