Construction workers see easing demand growth

Latest News Wed, Mar 23, 2016 9:15 AM

Construction workers see easing demand growth

Job vacancies for construction staff continued to rise in August, but at a slower pace compared with July.  

The latest Report on Jobs, published by KPMG and the REC, shows that construction was in sixth place out of nine in the demand for permanent staff ‘league table’ in the latest survey period.

At 61.9, the index measuring demand for permanent construction employees was down from July’s 11-month high of 68.3, although still pointed to a strong rate of expansion overall. By comparison, the UK average was 63.7.  

The index for temporary/contract construction workers posted 57.5 in August. This was down from 69.6 in July, and left the sector in eighth place out of nine in the demand for temp staff ‘league table’. The UK average for short-term workers was 60.5.  

Richard Threlfall, Head of Infrastructure, Building and Construction at KPMG, said: “There was no respite for construction managers in August, who faced an even bigger struggle to find workers after a vast swathe of Britain’s labourers appeared to take the summer off. The number of people looking for a jobs in the sector fell, putting more construction projects under pressure from a shortfall in workforce.

“A bounce-back is expected September.  However, this is of little comfort to those trying to deliver projects to the industry’s notoriously tight schedules.

“With construction demand expected to continue rising through the next few years, the skills shortage remains the number one challenge for the industry.”

The full report and historical data from the Report on Jobs are available by subscription. Please contact economics@markit.com.

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