Did you outperform the market in 2024?

Everyone seems to agree that the labour market (in general) was rough in 2024. The past year was hard for most, especially jobseekers. 

However, we tend to overlook the fact that not every market behaves in the same way; we have a habit of shaping narratives to fit our own perspectives. 

It’s important to pay attention to specific industries and sectors since people are getting jobs – all the time, every day and everywhere. Instead of focusing on the overall market, we need to be sector specific and focus on our share of the market. In this article we briefly discuss the history of the market for the construction industry, then we go into detail about the market for various construction sectors over the years. Ultimately, Atkins Search are here to help you ensure a smooth job search in 2025 within the everchanging construction market. 

The Economic Output by Industry From 1990-2023 

Source:  House of Commons Library. (2025). Research briefing: [Industries in the UK]. UK Parliament.  

Since 1990 the share of the economy attributed to services has grown from 70% to 80%, while the share attributed to manufacturing has decreased by a similar amount, from 17% to 9%. As the chart above shows, the share of the economy attributed to the other main industry groups (agriculture, mining, construction and utilities) has remained broadly stable over the same period.  

The construction sector from 1990 to 2023 went through phases of boom and bust, with economic crises like the 2008 financial crash and the 2020 COVID-19 pandemic creating major disruptions. The industry’s ongoing challenges included labour shortages, material cost volatility, and adapting to new technologies. However, the sector also evolved with rising demand for sustainable practices, technological adoption, and digital tools. 

Key Factors Throughout the Years: 

• Economic Cycles: The construction industry is cyclical, often closely tied to broader economic conditions. Recessions, financial crises, and periods of growth all had significant impacts on the sector. 

• Technological Innovation: Over the decades, the integration of technology transformed the sector, from manual construction techniques to highly automated and data-driven approaches. 

• Environmental and Regulatory Focus: Growing environmental concerns led to the rise of sustainable building practices and increasingly tight building codes and regulations. This trend his only going to intensify. 

• Globalisation and Urbanisation: Global economic shifts, population growth, and urbanisation drove demand for construction, particularly in emerging markets. 

Various Construction Sector Outputs From 2010-2023 

After the financial crash of 2008, UK construction output, especially in housing and infrastructure, gradually recovered after 2013, with a significant uptick in private housing, commercial, and infrastructure sectors. However, not long after the financial crash was the pandemic which led to initial declines in 2020, but construction output rebounded quickly, particularly in the housing and infrastructure sectors. Initiatives such as ‘Help to Buy’, the ‘Affordable Homes Programme’, and infrastructure investment schemes (e.g., HS2) played a key role in stimulating the construction output. Nevertheless, from 2021 onwards, the sector was affected by rising material costs, global supply chain disruptions, and labour shortages, impacting the pace of recovery. Additionally, economic uncertainty caused by Brexit, rising material prices, and inflationary pressures added complexity to the construction sector in the latter half of the 2020s. 

Source: Construction statistics, Great Britain: 2023 (Table 1.1, 1.2, 1.3) from the Office for National Statistics  

The graph above shows the total new work construction output increased by 4.2% in 2023, reaching a record high value of £139,029 million 

For the period between 2010 and 2023, the construction output in the UK across various sectors, including private housing, private commercial, private industrial, private infrastructure, public housing, and public infrastructure, has seen significant fluctuations driven by economic, political, and social factors. Here’s a summary of the key trends in each sector: 

1. Private Housing 

• 2010-2013: The private housing sector faced challenges due to the aftermath of the 2008 financial crisis, resulting in reduced investment and output. Housing starts were low, with a slow recovery due to constrained lending, economic uncertainty, and limited government intervention. 

• 2014-2019: Private housing output started to recover gradually with stronger demand driven by a recovering economy, low-interest rates, and government initiatives like Help to Buy and various housing incentives. 

• 2020-2023: The COVID-19 pandemic disrupted construction briefly, but there was a sharp bounce-back, especially due to increased demand for homes. However, rising material costs, labour shortages, and economic uncertainty (e.g., Brexit and inflation in 2022) led to challenges in the sector, but growth continued due to the ongoing housing demand. 

2. Private Commercial 

• 2010-2013: The private commercial sector was hit hard by the financial crisis and austerity measures. Demand for office spaces, retail, and industrial properties was relatively low. 

• 2014-2019: A steady recovery began as businesses resumed expansion. Major urban regeneration projects, as well as rising demand for office space and retail centres, fuelled growth in commercial construction. 

• 2020-2023: The pandemic severely impacted retail and office spaces, particularly with the rise of remote working and changes in consumer behaviour. However, sectors like warehousing and logistics saw an uptick due to e-commerce growth. There was some recovery as businesses adapted to new needs (e.g., flexible office spaces and data centres). 

3. Private Industrial 

• 2010-2013: This sector experienced slow growth due to lingering impacts from the recession, with reduced demand for new factories and industrial infrastructure. 

• 2014-2019: A revival occurred with increased demand for logistics centres, manufacturing plants, and warehouses, particularly driven by the e-commerce boom and increased demand for distribution centres. 

• 2020-2023: Growth in logistics and warehousing continued due to the sustained boom in online shopping. Other industrial sectors, such as manufacturing, showed mixed results, with some areas benefiting from government incentives for reshoring and green energy initiatives. 

4. Private Infrastructure 

• 2010-2013: The private infrastructure sector faced challenges due to tight budgets and limited private investment in the aftermath of the financial crisis. Some projects, especially large-scale infrastructure, were put on hold. 

• 2014-2019: Investment in transport infrastructure, energy projects, and utilities saw a resurgence, partly driven by government funding and public-private partnerships (PPP). 

• 2020-2023: The sector benefited from significant government investment in “shovel-ready” projects during and after the pandemic, with major projects like HS2, road upgrades, and renewable energy initiatives. 

5. Public Housing 

• 2010-2013: Public housing output was constrained during the austerity period following the 2008 financial crisis. There was a decline in the number of new public housing projects, and the focus shifted toward maintaining existing stock. 

• 2014-2019: A moderate recovery occurred, but public housing construction was still relatively low compared to private housing due to budgetary constraints and limited government investment. 

• 2020-2023: The government made some attempts to ramp up public housing output, especially in response to the housing crisis, with initiatives like the Affordable Homes Programme. However, funding and planning restrictions limited large-scale growth. 

6. Public Infrastructure 

• 2010-2013: Public infrastructure faced reduced funding during austerity, leading to slower progress on transport, education, and health infrastructure projects. 

• 2014-2019: Public infrastructure spending increased, driven by initiatives such as road upgrades, rail expansions, and new hospital constructions. Major infrastructure projects like HS2 and the Thames Tideway Tunnel were in planning or early stages. 

• 2020-2023: Public infrastructure was a major focus as part of the government’s post-pandemic recovery plans, with continued investments in transport, energy, and health infrastructure. The focus was on sustainable infrastructure projects, including green energy, decarbonization, and digital infrastructure. 
  

The Construction Sector In 2024 

The construction market in 2024 was a mix of challenges and opportunities, largely influenced by global economic conditions, inflation, and fluctuating interest rates. Some key trends included: 

1. Continued Impact of Rising Costs: Material costs, although stabilizing somewhat compared to 2022 and 2023, remained higher than pre-pandemic levels. This affected project budgets and timelines. 

2. Labor Shortages: The industry continued to face labour shortages in many regions, particularly skilled workers. This was a persistent issue, as demand for construction workers outpaced supply, slowing down certain projects. 

3. Interest Rates and Financing: Higher interest rates, set by central banks to control inflation, made financing more expensive. This likely impacted large-scale commercial and residential developments, especially for projects reliant on loans or investor financing. 

4. Sustainability and Green Building: There was a strong push towards sustainable construction practices, including the use of eco-friendly materials and energy-efficient technologies. Green building certifications (like LEED) continued to be a key factor for new projects, driven by both government incentives and consumer demand for environmentally responsible buildings. 

5. Technological Innovation: The sector saw continued adoption of technologies like Building Information Modelling (BIM), drone surveying, and construction robotics, helping to improve efficiency and reduce errors. Automation and AI were also starting to play larger roles in project management and design processes. 

6. Government Infrastructure Projects: In some regions, government-led infrastructure spending, particularly in the U.S. due to the Infrastructure Investment and Jobs Act, provided a boost for sectors like roads, bridges, and public utilities. 

7. Residential Construction: While demand for housing remained relatively strong in some areas, affordability continued to be a challenge. Higher mortgage rates kept some potential buyers out of the market, which affected housing starts and demand for new construction. 

How Atkins Search can help you in the construction market for 2025 

Considering the aforementioned, the data is not the primary purposes of our article. What Atkins Search want to do is be honest and not blame ‘the market’ for downfalls. The truth is…. the market is soft! We understand the construction market is tough, but the market isn’t as bad as the 2023 recession when there was a rise in economically inactive people in the wake of the COVID-19 pandemic. 

Atkins Search are market leading, sector focused, specialist recruiters for the Built Environment. With over 50 years’ combined experience recruiting for the Construction, Consultancy, Engineering and Residential Sectors, we operate on a national basis, working collaboratively with our extensive client base to attract the best talent for your business. 

In addition to being sector specialist recruiters, “Atkins Search People” is our employee-focused support function, providing industry specific Training Courses, Salary Benchmarking, HR Support, Workforce Planning and Personality profiling to upskill and support your workforce. 

When the market is constantly shifting, sticking to the same routine and hoping for the same results is just not smart. It’s time to switch up your strategies, pick up some new skills, and look at things from a fresh perspective. The industry experts at Atkins Seach will help you measure yourself against industry benchmarks and thrive in the 2025 construction market. Our aim is not to confuse the process, it’s to facilitate the solution to attract the right people at the right time, to your business. 

We have been doing this a long time, so will always speak proudly about who we are and what we do. Success is closer than you think!