The following report is based solely on conversations held at the RIN Harrogate event in November 2025. The insights reflect real-time market sentiment shared directly by hiring managers, technical leads, and rail professionals attending the event. This on-the-ground perspective offers a snapshot of current recruitment trends, workforce challenges, and hiring intentions across design, rail systems, and project delivery within the rail sector.
Design, Engineering, and Consultancy
Across the design consultancy space, there is a noticeable shift in market sentiment, moving from caution to quiet optimism. Hiring organisations are reporting renewed appetite to engage, with some businesses reporting being “mega busy” and delivering on a growing number of rail design projects across Scotland, the North West, and the Midlands.
Although not all frameworks are currently active, several firms have robust pipelines and anticipate increased workloads in Q1 2026. There is a clear desire across the market to encourage competition, with some firms taking the opportunity to revisit their supply chains and challenge traditional routes to talent.
Contractor Engagement
There has been an uptick in the use of fixed-term contract models, particularly at senior level. This reflects a preference among hiring managers to reduce risk by engaging individuals on six-month trial periods, with conversion to permanent considered depending on project performance and cultural fit.
From the contractor perspective, day rate increases are not a strong enough incentive alone to drive movement. Stability and team integration are valued more highly. Many are happy to remain in post, particularly where project longevity and onsite presence are expected.
Permanent Recruitment Outlook
Permanent staff movements remain subdued. Even where good opportunities exist, candidates are reluctant to move unless compelled by redundancy, relocation, or a significant step forward in their career. There is more movement at junior and intermediate levels, where design consultancies are increasingly considering homegrown talent, graduates, and apprentices to secure longer-term retention.
Firms open to recruiting now are favouring local candidates who can be visible in the office, especially for roles tied to regional delivery. Design teams are seeking proven software proficiency over sector-specific background, opening doors for cross-sector movement.
Ireland as a Growth Opportunity
Multiple design consultancies and SMEs are targeting expansion into the Irish market. The drive is led by demand for light rail and wider infrastructure capability. However, delivery is still in the planning and tendering phase, with no significant hires reported yet. Barriers exist due to EU labour laws and a lack of established delivery models, but the opportunity is widely recognised.
A growing number of candidates are open to relocation, either within the UK or internationally. Ireland and Canada have both been identified as destinations seeing an increase in interest, especially among senior engineers and examiners. This is reducing the UK talent pool for niche roles, prompting a more proactive approach to pipelining.
Rail Systems
The rail systems market has been described as “up and down,” with activity driven largely by tenders and early-stage design work. Several businesses have noted slow months but anticipate increased mobilisation post-April 2026.
Projects previously in limbo are now showing signs of movement, particularly those connected to HS2 and regional enhancement schemes. The perception is that construction activity is beginning to gather pace after delays and political uncertainty.
Firms with a strong presence in electrical and E&P systems are maintaining lean teams and using the next few months to plan for growth. Many are treading carefully, holding off permanent hires until their tender pipeline crystallises. Zero-hours contractors and flexible engagement models are being used to plug gaps in the interim.
Recruitment Strategy
There has been increased scrutiny over recruitment costs, with some clients shifting to lowest-cost suppliers in the short term. However, many are clear that delivery and cultural fit remain critical. Several companies have agreed to non-exclusive partnerships with agencies, maintaining flexibility to access specialist resource when needed.
Contractor mobility within systems roles remains high, particularly in disciplines such as MEP and E&P. However, market saturation is a concern – candidates are reportedly being selective due to recent experience with delayed start dates and poor pipeline visibility.
Design Capability within Systems
Notably, some traditionally site-focused contractors are beginning to build in-house design capability. RISQS accreditations are being secured, and early hires are being considered to support this diversification. This could generate future demand for electrical design, CAD, and CRE-level staff as in-house delivery models mature.
Project Delivery
The project delivery space is seeing mixed conditions. Several contractors and delivery organisations report that the market is still quiet, but those with confirmed work are increasingly busy. "Access for All" station upgrades, depot refurbishments, and civils-heavy schemes are the main drivers of activity, particularly in the North West and Midlands.
There is high dependence on regionalised labour models. Local sourcing (within 40km radius) is often a contract requirement. This is influencing hiring behaviours and encouraging firms to revisit regional candidate pipelines. Employers are expressing more openness to hiring contractors on a permanent basis where cultural fit is strong.
Looking Forward
Recruitment in project delivery is expected to ramp up significantly from Q1 2026. In most cases, the model being used involves hiring senior site or engineering personnel first (e.g., Site Agents, PMs, CREs), with junior staff added once confidence in the project timeline is secured.
There is a general pattern of using the remainder of 2025 for mobilisation and early works, with substantial recruitment expected in the first quarter of the new year. Projects extending to 2027 and beyond are beginning to drive long-term hiring discussions.
Trends in Candidate Behaviour
There is a continued challenge in balancing permanent and contract headcount. Pay disparity and integration issues are still cited as pain points for mixed teams. However, many businesses are willing to convert contractors to perm if the individual demonstrates long-term commitment and strong delivery on-site.
Summary
While the rail sector continues to face uncertainty in pockets, there is clear momentum building across design, systems, and project delivery functions. Recruitment remains cautious but active – with firms preparing for larger workforce needs in 2026.
Contractor engagement is high, but success hinges on integration, communication, and confidence in project timelines. Permanent recruitment is progressing slowly but is expected to rise, particularly where frameworks are secured or long-term projects enter delivery.
Candidate behaviour continues to reflect a desire for stability, flexibility, and visible value. Employers who offer a clear pipeline, competitive packages, and cultural alignment are best placed to attract and retain talent as the sector enters a new phase of delivery.
