Wondering what’s shaping the job market right now? Each month, we break down the top five stories you need to know, plus what they mean for businesses, recruiters, and job seekers alike.
January brings a mix of encouraging shifts and tougher headlines across the job market. Construction is picking up again across Europe, hospitality is facing another round of closures, and new investment in green aviation is creating space for future‑focused skills. At the same time, rising unemployment forecasts and a small bump in inflation are adding pressure as the year gets underway.
Construction roles in demand across Europe
Despite suffering a sharp decline last year, the construction sector is seeing an increasing demand for construction-related roles across the UK and Europe according to data from LinkedIn. With the UK wanting to create 1.5 million new houses by 2029, alongside many European governments who see building more houses a priority, momentum is finally shifting for the sector.
It has been speculated that the increase in demand for construction roles could also be due to labour gaps, and a wide range of role opportunities; from project managers to on-site medical staff. The impact of AI has also made hands-on careers more appealing, with experts referring to the industry as ‘exceptionally future-proof’.
TGI Fridays closes 16 restaurants
After going into administration at the end of last year, the restaurant chain TGI Fridays, has made a pre-pack deal saving a majority of their 49 sites, but with 16 restaurants set to immediately close and 456 jobs cut. This is the second time the company has closed sites following administration, with 35 restaurants and 1,000 jobs cut in 2024.
The pre-pack deal with new owners Sugarloaf TGIF Operations, however, does save 33 restaurants and 1,384 jobs, and staff members from closing sites have been offered support from local businesses and councils. Two Hitchin businesses have offered jobs to staff made redundant at the Stevenage branch, and Telford and Wrekin Council has offered support to staff from the Telford branch.
New investment in green aviation announced
The UK government has announced new funding to support UK research and development projects aimed at net-zero aviation by 2050. Up to £43 million in funding will be allocated to various green aviation projects, with businesses, researchers and universities able to bid for their share.
The investment will ultimately support skilled jobs in technology development, scientific research, and other energy-focused roles.
UK unemployment expected to be highest in a decade
Economists warn that UK unemployment could reach its highest level in more than a decade in 2026, due to ‘weak growth, rising employment costs and subdued private sector confidence’.
According to The Times annual Economists Survey, experts believe the unemployment rate could reach up to 5.5%; up from the current level of 5.1% and last reached in 2015, however experts have also advised that it is likely to peak in the early months of 2026 before 'cooling off' as the year progresses.
UK inflation rises to 3.4%
This month, the Office for National Statistics announced a rise in UK inflation to 3.4% in December, higher than economists had expected. The increase is the first in six months, however analysts do not think that inflation will continue to rise throughout the year, citing one-off factors related to the holiday season and the tobacco tax.
Additionally, the Bank of England has forecast that inflation will fall to 3.2% in the second quarter of the year.
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