Labour shortages in construction could lead to a skills gulf with workers’ wages doubling, according to a new report.
The new Arcadis Talent Scale report from consultant Arcadis states that the construction industry will need to recruit 400,000 people every year between now and 2021 if it is to meet the housing and infrastructure needs of the UK.
This could lead to a “minted workforce”, particularly in carpentery and joinery, where demand accounts for nearly one sixth of all national resource requirements.
Plumbers, electricians, and bricklayers are also in high demand, particularly in the labour-intensive house building sector.
The report found that in house building alone, if the UK is to increase output to 270,000 new homes over the next five years, it will need to employ in excess of 370,000 new people. Meanwhile, when it comes to meeting forecast national infrastructure requirements, an additional 36,500 people will need to be employed every year.
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The figures are independent of the impact of any eventual Brexit deal, which would further exacerbate the existing labour shortages and issues such as an ageing workforce and difficulties in attracting new people to the industry.
The consultant said skills shortages could lead to higher labour costs and, combined with already rising material costs, could push up construction prices and jeopardise output growth.
James Bryce, director of workforce planning for Arcadis, said: “What we have is not a skills gap, it is a skills gulf. Systemic underinvestment in the nation’s workforce has contributed to a reduction in UK productivity.
“Construction employment is already down 15% on 2008 and, quite simply, if we don’t have the right people to build the homes and infrastructure we need, the UK is going to struggle to maintain its competitive position in the global economy.”
He said it was imperative the government begins to address ways to secure the rights of EU workers and it was something it needed to move on now, rather then two years down the road when the reality of Brexit may be approaching.
He added that the need to get back into schools was essential, to engage with younger people and encourage them into construction.
“In the long-term we need to be getting into schools and speaking to 10-year-olds and tracking them, it may seem extreme but these are the ones we need to engage with if they are to be the future construction workers eight to 10 years down the line.
“We need to look at the issue as a societal thing not commercial. Politically we also need government leaders, too long there has just been talk and everyone hedging their bets, but we need actions.”
