Employer confidence across the UK has picked up this quarter. Confidence in the economy rose eight points and confidence in hiring and investment rose six. Both measures are still below zero though, so this is improvement rather than recovery. Most businesses are waiting to see what the Budget brings.
The Midlands stands out.
The Midlands is ahead of the national picture
Midlands employers were the most positive of any UK region about medium-term permanent hiring, at +12% against a national average of +6%. They were also the most positive about medium-term temporary hiring, at +11% against +5%.
Short-term permanent hiring intentions in the Midlands sit at +10%, above the UK average of +8%. Only the North of England was slightly higher, at +11%.
Nationally, the picture is flatter. Short-term permanent hiring is steady at +8%. Medium-term permanent intentions dropped four points to +6%. Temporary hiring is soft, at +2% short term and +5% medium term.
Mid-sized businesses are driving it
Medium-sized businesses were the most positive group about both permanent and temporary recruitment. That describes a large part of the Midlands engineering and manufacturing base: established firms with a few hundred staff and a pipeline of work to deliver.
What this means for engineering-led SMEs
If you’re planning to hire engineers or technicians in the next six to twelve months, you won’t be the only one. The region intends to hire at roughly twice the national rate over the medium term. That usually means more competition for the same shortlist and longer time to fill.
Contract demand looks strong too, which suits project peaks. But the firms that do best in a tightening market are the ones that plan their permanent hires early, before everyone else starts looking.
How does this compare with what you’re seeing in your own business? I’d be interested to hear.
Source: REC JobsOutlook, 29 September 2026, based on a survey of 704 UK employers between June and August 2026. Figures are net balances.