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Linear Company Update Summer 2026

10/07/26 Construction & Property Recruitment Transport and Rail Recruitment Agency Utilities, Power and Energy Recruitment Agency Architecture and Design Recruitment Labour and Trade Recruitment Agency Industrial Engineering Recruitment Agency Highways and Infrastructure Recruitment Warehouse Recruitment Foundry Engineering & Manufacturing Distribution and Logistics Recruitment Production and Manufacturing Recruitment FLT Driving

Once again this year has chosen to throw many hurdles at us and it continues to feel like it is a never ending story. Here at Linear we had an encouraging start to the year and our performance in Q1 surpassed the Q1 budget with Perm placements proving particularly strong. However, Q2 has been much more of a challenge, as it has been for many of our clients and the Construction industry in general.

The sector remains under significant pressure as output has fallen in 2026 and with continued high borrowing costs, geographical uncertainty and rising commodity prices there appears to be no let-up. However, there are early signs that the pace of decline may be easing with 38% of firms expecting activity to increase over the next 12 months. Early signs of recovery are emerging particularly in commercial and infrastructure pipelines but sustained recovery will depend on stronger housing demand, increased investment and the timely delivery of infrastructure projects.

Despite the UK construction sector output falling, there is still a real problem with staff shortages. Construction vacancies in Q2 contracted but we are still facing a severe skills shortage and a long-term skills gap. It is reported that the industry will require 200,000 extra construction workers by 2030 to meet current demand. This is driven by mass retirements (35% of workers are over the age of 50) and a drop in apprenticeships. If the construction industry fails to attract these workers the sector as a whole will face project delays, rising costs and difficulties in staff retention. This is a problem that must be addressed for the sector to grow.

The jobs market in general is showing signs of improving with encouraging data relating to temporary and contract workers. Recent data suggests that temp billings across the board in June showed the biggest growth for three years. After a strong Q1 permanent placements have continued to fall with firms turning to temporary/contract workers as they are not feeling confident enough to commit to larger scale permanent hiring.

On the legislation front, in April this year the new regulation for Umbrella companies came into force. The legislation will impact all agencies or end clients that pay workers through an umbrella company. From April 2026 the responsibility for PAYE and National Insurance has shifted from the umbrella company to recruitment agency or the end client. This means that if an umbrella company fails to meet its tax obligations, the liability could fall on the agency or client, rather than the umbrella company itself. At Linear we have a robust PSL in place and we have introduced a monthly audit procedure along with the annual audit which will protect us and our clients moving forward. I would urge any company that engages with umbrella companies to do the same and if you need any advice or assistance with this please feel free to get in touch and we would be happy to help.

We have had a number of other changes in legislation for the labour market this year. From April 2026 we have seen the introduction of the Fair Work Agency which replaces the Gangmasters Licence Authority, the Employment Agency Standards Inspectorate and the Director of Labour Market Enforcement. The FWA will be responsible for the enforcement of the National Minimum Wage taking this from HMRC. We have also seen the first stage of the Employment Rights act come into effect in April 2026.

One change to look out for in October 2026 is the Right to Work compliance expanding beyond employees. This means Right to Work checks will be needed for your self-employed and sub-contractor workers.

If you would like any advice on any of the above please feel free to contact us and one of our experts will be on hand to assist.

As always ESG and social value is extremely important to Linear and every year we are looking to put more back into society. This year we have already participated in numerous volunteering activities and we have various charity events occurring throughout the year - one of which is the Great North Run with a number of Linear staff taking part and raising money for a local charity Heel and Toe. More on this can seen further on in the newsletter.

Finally I do hope you enjoy the newsletter and find it informative. If you require any further information or advice please feel free to contact one of our offices.