Bleak economic prospects have hit employment with a further 45,000 jobs likely to go this year, according to a CITB-ConstructionSkills report.
The training body’s five year forecast found that 2012 will be the most painful year in terms of construction output, with a 3 per cent fall, followed by "slow and uneven" growth over the next five years due to economic uncertainty and changes to working practices, reports Construction News.
Public sector spending faces the most dramatic falls, with a 25 per cent decline in the value of public sector housing projects and a 24 per cent fall in public-sector non-housing this year.
Manual trades will be worst hit, with 6,300 fewer painters and decorators expected to be working by 2016 than in 2010, 3,000 fewer labourers and 2,500 fewer bricklayers.
However, one area of growth will be among construction managers, with an expected increase of 30,000 by 2016.
On a more positive note, construction will create a total of 76,000 additional jobs by 2016, although 60 per cent of those will be in London and the South-east, meaning darker prospects for the rest of the country.
Judy Lowe, deputy chairman of CITB-ConstructionSkills, said the industry was in for a tough time: "Infrastructure investment, the first nuclear power plants and the revival of private housing will help, but the hard fact remains that despite an increase in growth from 2013, output and employment levels in construction will not have reached their 2007-8 levels by the end of the forecast in 2016," she said. "The sluggish return to growth means that we could be talking about a lost decade in construction and a loss of key trade skills, but the real shock is the impact that cuts to public sector spending has had."
Meanwhile, drivers Jonas Deloittes latest London Residential Crane Survey has highlighted that despite continued economic uncertainty , development activity across Greater London has continued to increase. The report says there has been a 40% increase in construction activity since this time last year, with activity rising in the East of the capital.
The general topic of conversation and concerns these days from the government and construction industry appear to be around the lack of opportunities for young who might be convinced to enter the construction industry, or the industries lost talent for the future.
The industry has already a wealth of talent from the young but more so the older professional, tradesman or qualified managers, yet nothing appears to be being done to retain them! The old saying “that you don’t know what you have until it’s to late and no longer there” might be the long term cry from the construction industry once the recession is over and experience personnel previously within the industry are no longer available due to their needing to secure alternative employment in another industry or gone abroad.
Governments duly elected are done so to safeguard and look after the interests of such residents of that country and the counties interests. Being an EU member entitles non UK resident to seek employment in the UK though should not be at the expense of its citizens. Other countries have legislated that only skilled and talents shortages in that country would they then seek to bring others into doing the roles. The previous article highlighted a massive percentage of unemployed tradesmen in the industry, which would also include every trade including managers. The article also stated there may be an increase demand for manager’s positions in 2016, yet previous estimates since 2008 have been wrong, we are only in 2012 and experienced personnel may have secured alternative roles in alternative industries and not return to the industry!
This is purely an economical reason for this statement in that it would reduce the amount of Jobseekers Allowance having to be paid to UK residents (£50 per person per week), as non UK residents are not automatically entitled to Jobseekers Allowance and would therefore return home. The experience and talent base of the UK would therefore remain, contribute and benefit the UK as a whole. Going on the previous articles labour shortages of some 8800 tradesmen at £50 p/w this would total £22.88M p/y alone.
The above statement may appear political but should not be taken as such, the construction industry is going through the worst period in over 30 years and the industry, with the help from the government needs to look at its long term future, security and stability of the experience and talent potentially being lost during this time.
Clients only interest is having projects completed as cheaply as possible in as short a time period as possible, if experience or talent is not available in this country they may look at alternative counties to undertake their projects or bring skills into the country to complete the work, however any money earned by non UK resident may be not be spent in the UK but sent home, having a knock-on effect to the retail sector in this country.