After attending Rail LIVE last week, it's clear that rail is a sector navigating change, not standing still.
It was a pleasure to catch up with so many rail professionals at Rail LIVE. As always, the event offered a valuable opportunity to speak openly with clients, contractors, delivery teams and hiring managers about the realities of the market.
The general sentiment across the rail sector is mixed. There are certainly challenges, particularly around project visibility, talent retention and competition from adjacent infrastructure markets. However, it would be too simplistic to describe the sector as negative. Many organisations remain busy, several are preparing for upcoming opportunities, and there is still a clear need for skilled rail professionals across project delivery, commercial, engineering, safety and operational roles.
What came through most strongly is that the market is uneven. Some teams are fully committed and managing high volumes of work, while others are operating more cautiously, waiting for projects to move from tendering and planning into delivery. For many businesses, success over the coming months will depend on being prepared, flexible and closely connected to the candidate market.
Key themes from the conversations
1. Workload is active, but not consistent across the market
A recurring theme was the difference in workload between organisations, regions and disciplines.
Some businesses reported being extremely busy, with strong demand across civils, maintenance, power, depot, station and project delivery work. Others described a quieter period, with limited visibility on future packages and a tendency to keep core teams occupied rather than expand headcount.
The most positive conversations tended to come from organisations with:
Established Network Rail work banks;
Exposure to power, electrical infrastructure or renewals;
Smaller and medium-sized schemes that continue to move;
Access to maintenance and reactive works;
Potential involvement in HS2-related packages;
Strong relationships across the supply chain.
The more cautious conversations centred on delayed procurement, slower release of new work, uncertainty around future frameworks, and projects not yet reaching delivery stage.
Overall, the sector is not inactive. The issue is that activity is fragmented, and many organisations are having to plan around uncertainty rather than clear long-term visibility.
2. Talent is continuing to move into water, energy and wider infrastructure
The movement of skilled rail professionals into other sectors was one of the strongest themes raised at the event.
Water, energy and power markets are currently seen by many candidates as offering a strong combination of workload, stability and work-life balance. Several conversations highlighted that professionals leaving rail are often attracted by:
Fewer weekend and night shifts;
Reduced regulatory burden;
Comparable or improved pay;
Less need to maintain multiple rail-specific competencies;
More predictable working patterns;
Clearer long-term investment in some adjacent sectors.
This is not to say that rail cannot compete. Many candidates remain loyal to the sector and would consider returning for the right opportunity. However, employers may need to work harder to show why rail remains a compelling career choice.
That means going beyond salary alone and focusing on project purpose, career development, culture, flexibility where possible, and the long-term value of specialist rail experience.
3. Candidate availability remains tight in key disciplines
While some businesses are not actively recruiting, those that are hiring are still finding it difficult to access the right calibre of candidate.
Demand was discussed across a range of roles, including:
Project managers;
Operations managers;
Commercial staff;
Quantity surveyors;
Engineering managers;
CRE and M&E CRE professionals;
Site engineers;
Site agents;
Site managers;
Supervisors;
Health and safety professionals;
Power and electrical infrastructure specialists.
Several hiring managers also commented on the high volume of unsuitable applications being received through direct advertising. This creates a significant administrative burden and does not necessarily translate into quality shortlists.
The message from the market is clear: there may be applicants, but there is still a shortage of suitable, experienced and available rail professionals.
4. IR35 and contractor models remain central to workforce planning
IR35 remains a significant factor in how businesses think about contract labour.
The rail sector appears to have matured in its approach, with inside-IR35 roles now widely accepted as the norm. Outside-IR35 opportunities are increasingly limited and are generally more likely to sit with smaller subcontractors where exemptions apply.
There was also discussion around contractors moving into permanent roles for stability, particularly where the administrative burden or uncertainty of contracting has become less attractive. Some contractors are comfortable operating through umbrella arrangements, while others are reassessing whether permanent employment now better suits their priorities.
For clients, this means workforce planning needs to consider more than day rate alone. Availability, employment model, compliance, take-home pay, continuity and retention all need to be factored into resourcing decisions.
5. There is growing value in maintenance, renewals and reactive experience
A number of conversations pointed to increased demand for professionals with maintenance, renewals and reactive project experience.
While some candidates are drawn to major projects and strategic delivery, much of the current market activity is sitting in smaller, high-volume, operationally important works. These environments require people who are comfortable with pace, change, site presence and practical problem-solving.
For employers, this creates both a challenge and an opportunity. The challenge is that not every candidate wants reactive or maintenance-led work. The opportunity is that these roles can offer stability, variety and long-term value for professionals who enjoy delivery-focused environments.
Positioning these opportunities correctly will be important when engaging candidates.
What this means for rail employers
The sector is facing pressure, but it is also showing resilience. The businesses best placed to navigate the current market are likely to be those that stay close to candidates, plan ahead and remain realistic about availability.
Practical considerations for hiring teams:
Be proactive before roles become urgent
Where projects are likely to land, early market engagement can make a significant difference. Waiting until a role is business-critical can narrow the available talent pool.
Move quickly when strong candidates are available
Experienced rail professionals remain in demand. Lengthy processes, unclear feedback or delayed approvals can result in candidates accepting opportunities elsewhere.
Be clear about the opportunity
Candidates want to understand the project, the team, the working pattern, the pipeline and the long-term prospects. A well-positioned role will stand out more effectively.
Consider transferable experience carefully
With talent moving between rail, highways, water, energy and power, there may be value in identifying where skills can transfer successfully, while still protecting safety, compliance and technical standards.
Think about retention as much as attraction
The risk is not only failing to hire new people. It is also losing experienced professionals to adjacent sectors. Culture, development, communication and work-life balance all matter.
A balanced outlook
The rail market is not without its challenges. Project delays, cautious procurement, skills movement and IR35 considerations are all affecting hiring confidence.
However, there are reasons to remain constructive. Work is still being delivered, specialist skills are still required, and several areas of the market continue to show demand. Power, renewals, maintenance, civils, stations, depots and future framework activity are all areas where clients may need to strengthen teams.
The strongest opportunities may not always come from headline-grabbing major schemes. In many cases, they will come from the steady, essential work that keeps the rail network safe, reliable and operational.
For clients, the key is preparation. Organisations that understand the candidate market, act decisively and communicate their opportunities clearly will be better placed to secure the people they need.
Thank you to those who we caught up with at Rail Live. The conversations throughout the day reinforced how important it is for the rail sector to remain connected, informed and collaborative.
While the market is undoubtedly changing, there is still strong demand for experienced, committed and capable people. With the right planning and the right partnerships, clients can continue to build resilient teams ready for the opportunities ahead.