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Specialists and developers bear brunt of construction job cuts
Specialist contractors and developers are expecting to see the biggest reductions in their workforce between September and December as a result of the ongoing coronavirus pandemic.
That’s according to a Build UK people survey carried out on behalf
of the Construction Leadership Council (CLC).
The survey, conducted in September, is being used to
prioritise support for employers in line with the construction sector’s Roadmap
to Recovery.
The survey found that the construction sector as a whole
anticipates a reduction in the workforce of 4.2% between September and
December.
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Specialist contractors expect a 14.4% reduction in the
workforce, followed by developers with a 13.9% reduction. Consultants expect to
see a 3.4% decline in their workforce, contractors 3.1%, material suppliers 3%,
and home builders 0.6%.
There is expected to be a 5.3% reduction in the number of
self-employed and agency workers across the industry by December, compared to a
3.9% reduction in the number of directly employed workers.
On average, 6% of direct employees remain furloughed, down
from 32% reported in June.
Home builders, specialist contractors and contractors are
the most significant users of self-employed and agency workers. Home builders
anticipate increasing the number they use by 6% but specialist contractors and
contractors are looking to reduce self-employed and agency workers by 32% and
5% respectively.
Respondents to the survey currently employ 80% of their
workers directly, with the remaining 20% being self-employed or agency workers.
Apprentices and graduates
In good news for apprentices, the total number employed is expected
to increase by over 4% over the next three months, with consultants looking to
increase numbers by 23%, contractors by 9% and material suppliers by 3%. Only
3% of apprentices remain furloughed, down from 43% in June.
Only 4% of companies are expecting to make apprentices
redundant, with two thirds of those citing lack of work as the main reason.
But 48% of companies took on fewer apprentices in September,
with 46% recruiting the same number and 6% taking on more.
In the next intake, in January, 55% of companies expect to
take on the same number of apprentices, with 38% looking to recruit fewer and
6% planning to take on more.
The survey found that survey respondents who pay the
Apprenticeship Levy (28% of respondents) expect to lose a third of their Levy pot
on average at the end of this year, due to not being able to spend it within
the two-year timeframe.
Just 22% of respondents have a graduate scheme and there was
an 18% fall in the number of graduates taken on in September – lower than the 32%
forecast in June.
Training moves online
Half of the 84% of respondents who provide training to their
workforce said they expected it to take place online over the next three
months. More than half (55%) of training providers also expect their courses to
take place online, however two thirds said face-to-face training has resumed or
will resume over the next three months – although these responses were given
before the announcement of a second lockdown in England by Prime Minister Boris
Johnson.
The January/February 2026 issue of Construction Management magazine is now available to read in digital format.
Powered Access
CM, in partnership with IPAF, has launched a new survey to explore the industry’s views and experiences with powered access machines on construction projects.
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