Bespoke Career Solutions

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Written by Richard Bourne 10th October 2026

There is a sentence we have heard regularly from employers over the past couple of years.

“We have work available, but we are waiting to see what happens.”

That response is understandable. Businesses have faced higher employment costs, expensive energy, uncertain orders and changing government policy. When confidence is low, even companies with genuine opportunities can become cautious about recruiting, investing or replacing equipment.

However, waiting does not always remove demand. In many cases, it simply postpones it.

Machines continue to operate, parts wear out, commercial vehicles need replacing, buildings require maintenance and stock eventually needs replenishing. Customers can delay a purchase, but they cannot always avoid it indefinitely.

This creates unrealised demand, work that exists in the economy but has not yet been released because businesses and consumers have lacked the confidence to commit.

There are now signs that some of that confidence is returning.

The latest KPMG and REC UK Report on Jobs found that permanent placements increased for a second consecutive month in September 2026. Although the growth was modest, it was the strongest recorded for four years. Temporary billings also increased, while the decline in overall vacancies was the weakest seen for just over two years.

This is not a boom, and businesses still face considerable pressure. It is, however, movement in the right direction.

The important question for employers is whether their recruitment process will be ready if that movement gathers pace.

Is confidence really returning to the market?

The honest answer is yes, but cautiously.

The recruitment market is beginning to show signs of improvement. The KPMG and REC data reported better business confidence, greater efforts to expand capacity and the first improvement in demand for permanent private-sector staff for more than two years.

Engineering was one of the strongest areas of permanent recruitment demand in September. Temporary billings also increased particularly strongly in the Midlands, which is encouraging for manufacturing, engineering and logistics businesses across the region.

Manufacturing data tells a similar story.

Make UK’s latest Manufacturing Outlook found that orders, investment intentions and business confidence had improved. However, many manufacturers were still holding back from recruitment because employment, energy and input costs continued to affect decisions.

That gap matters.

Demand is beginning to improve, but recruitment has not yet fully caught up. Businesses want to see more evidence before committing to additional employees.

The risk is that by the time the evidence becomes obvious, many companies will be trying to recruit at the same time.

What is unrealised demand?

Unrealised demand is the requirement for a product or service that has been delayed rather than removed.

Imagine a manufacturer considering the replacement of an older machine. The business may decide to continue repairing it because investment feels risky. That decision reduces immediate demand for the machine builder, installer, electrical contractor and maintenance provider.

However, the requirement has not necessarily disappeared. The existing machine continues to wear, breakdowns become more frequent and maintenance costs increase. Eventually, replacing it becomes less risky than keeping it.

The same principle applies throughout the economy.

A transport company may keep a vehicle for another year. A warehouse may run with lower stock levels. A manufacturer may delay ordering new tooling. A customer may postpone replacing equipment. A business may continue operating with fewer people and use overtime to fill the gaps.

These decisions can suppress demand for a period, but some purchases, repairs and appointments cannot be delayed forever.

When confidence improves, several postponed decisions can be released within a relatively short period.

One company orders new equipment. That order creates work for a component manufacturer. The component manufacturer needs materials. The materials need transporting. The finished equipment needs assembling, installing, testing and maintaining.

What begins as one purchasing decision can create demand across manufacturing, engineering, warehousing, transport and commercial support.

Why has demand been building?

Businesses have spent a prolonged period controlling costs and avoiding unnecessary commitments.

Some have reduced stock. Others have delayed investment, stretched maintenance schedules or chosen not to replace employees who left. Existing teams have absorbed additional duties, worked overtime or moved between departments to keep production running.

These measures can work in the short term, but they have limits.

A smaller team may maintain output while orders are manageable. If demand rises suddenly, the business may not have enough people to increase production. The employees who kept everything running during the difficult period may already be working close to capacity.

A manufacturer may also discover that the skills it needs are no longer immediately available. An experienced setter, fabricator, maintenance engineer or production supervisor cannot always be recruited and made fully productive within a few days.

There are encouraging signs that investment is already beginning to move. The Office for National Statistics reported that UK business investment increased by 1.8% during the second quarter of 2026 and was 5.2% higher than a year earlier. Machinery and equipment made a positive contribution to that growth.

Investment in machinery does not eliminate the need for people. New equipment still needs installing, operating, maintaining, inspecting and supporting.

Growth in investment can therefore lead directly to additional demand for engineering, production, warehouse, logistics and administrative staff.

Could the market increase quickly?

It could, although no recovery is guaranteed.

Economic activity does not always return gradually. Confidence can remain low for months and then improve quickly when several positive signals appear together.

A stronger order book may encourage a manufacturer to approve a new machine. A positive Budget may give a business the certainty to proceed with an expansion. One large customer placing an order can create requirements throughout a local supply chain.

The danger for employers is assuming that the availability of candidates today will remain the same once confidence improves.

Candidate availability has increased during the recent period of cautious hiring. However, the latest KPMG and REC report found that the rate of growth had slowed to its weakest in three years. Competition for highly skilled people was also continuing to place upward pressure on starting salaries.

If hiring activity continues to strengthen, experienced candidates may receive several approaches at the same time. The maintenance engineer who currently appears available may have three interviews within a week. The reliable production operative may choose the company offering the clearest route to permanent employment. The skilled welder may accept the employer that provides prompt feedback and a realistic rate.

A business that waits until the market feels completely safe may find that its competitors have already started recruiting.

Why should workforce planning begin before the order arrives?

Recruitment is often started only when a requirement becomes urgent.

A new contract is confirmed, a machine is delivered or a major order arrives. The business then needs several people immediately.

The problem is that recruitment does not become easier simply because the vacancy is urgent.

The right candidates still need to be found, screened, interviewed and given notice. New starters require induction and training. In skilled roles, it may take time for someone to understand the products, machinery and quality standards.

Workforce planning gives the employer options.

It allows the business to identify where it has limited skills coverage, which employees are approaching retirement and which departments could become stretched if demand increases. It also creates time to distinguish between permanent requirements, temporary peaks and roles that could begin on a temporary-to-permanent basis.

Planning does not mean recruiting people before there is work for them. It means understanding what will be required if an opportunity becomes real.

Is your recruitment process ready to move?

A recruitment process designed for a cautious market may not work when competition for candidates increases.

During a period of low activity, an employer may be able to spend several weeks reviewing applications. When demand strengthens, the same delay can result in the strongest candidates accepting other offers.

Preparation starts with the job itself.

The employer needs to know which skills are essential, which can be trained and what the position is worth in the local market. The salary or hourly rate should be approved before interviews begin. The people involved in making the decision should know when they are available to meet candidates.

The interview process should be thorough but proportionate. A skilled tradesperson does not always need three interviews and a lengthy presentation. In many cases, a detailed conversation, workplace tour, practical assessment and prompt reference process will provide the information required.

Speed should not mean lowering standards. It means removing avoidable delays.

An employer that provides quick feedback, answers questions honestly and makes a clear offer gives candidates confidence. That becomes even more important as the market improves.

Why is the Autumn Budget so important?

The Autumn Budget on Wednesday 28 October 2026 will help set the tone for business confidence, investment and hiring during the months ahead.

The Government has said the Budget will be built around fiscal discipline and should provide businesses and families with greater stability to plan for the future.

That stability is what many employers are waiting for.

Businesses do not expect the Government to remove every commercial risk. They do, however, need a clearer understanding of future costs.

Employment costs, energy prices, business rates, investment incentives, infrastructure and skills support all influence whether an employer recruits, expands or continues to wait.

If the Government is serious about growth, the Budget needs to help businesses create opportunities. Growth does not happen through an announcement alone. It happens when employers feel able to invest in machinery, accept larger orders, train people and add employees to their teams.

A Budget that increases costs or creates additional uncertainty could cause more decisions to be delayed. A Budget that gives businesses stability, practical support and a reason to invest could release some of the demand that has been building.

For manufacturing businesses in particular, Make UK has warned that improving confidence has not yet translated into stronger recruitment. Its latest outlook argues that lower cost pressures and greater certainty will be essential if manufacturers are to invest, recruit and plan for long-term growth.

The opportunity is there. The Budget will influence whether businesses feel able to take it.

What should employers do now?

Employers do not need to predict exactly what will happen after the Budget. They should prepare for more than one outcome.

That means reviewing the skills already within the business and identifying where additional demand would create immediate pressure. It means understanding which positions would need to be recruited first and whether temporary, permanent or temporary-to-permanent staffing would provide the most appropriate solution.

Businesses should also review their pay rates, shift patterns and interview processes before vacancies become urgent.

A company that prepares now can move confidently when an order arrives. A company that waits until production is already under pressure may have fewer options and face greater competition for the same candidates.

Temporary staffing can provide useful flexibility during the early stages of an upturn. It allows employers to increase capacity when demand becomes clearer, while avoiding the delays involved in beginning a recruitment campaign from nothing.

Permanent recruitment remains essential where a business needs to protect specialist knowledge, replace an experienced employee or build long-term capability.

The correct approach will depend on the work, the timescale and the level of certainty. That is why workforce planning should begin with a conversation rather than an advert.

How can Bespoke Career Solutions help employers prepare?

At Bespoke Career Solutions, we work with employers across manufacturing, engineering, logistics and commercial sectors to understand what their businesses genuinely need.

We discuss the work, expected demand, required skills, shift patterns and timescales before recommending a recruitment approach.

Because we speak with candidates and employers every day, we can provide a realistic view of local pay rates, candidate availability and how quickly a particular vacancy is likely to be filled.

We can help businesses prepare for increased demand through temporary cover, temporary-to-permanent recruitment and permanent appointments. We can also help clarify which skills are essential from the first day and which could be developed after someone joins.

The aim is not simply to fill a vacancy. It is to give an employer a workforce solution that reflects what is happening in the business and what is available in the market.

The market will not wait for complete certainty

Confidence appears to be returning, but cautiously.

Orders are improving, investment is moving and recruitment activity has started to increase. At the same time, many employers are still waiting for the positive signs that will give them confidence to commit.

That waiting has helped create a backlog of decisions.

Parts will still need replacing. Machines will continue to wear. Stock will need replenishing. Delayed projects will eventually need completing and customers will still need products and services.

Not all postponed demand will return, and it will not arrive evenly across every industry. However, if confidence continues to improve, the market could move more quickly than many employers expect.

The businesses in the strongest position will be those that are ready.

They will understand the people they need, the rates they must offer and the recruitment process required to secure them. They will have a flexible plan rather than waiting for the pressure to arrive.

The market is beginning to move again.

The question is whether your hiring process can move with it.

To discuss your recruitment requirements or start planning your future workforce, contact Bespoke Career Solutions.

Telephone: 0121 818 5188
Email: jobs@bespokecareersolutions.com
Website: www.bespokecareersolutions.com

Driven by people, powered by innovation.