Business

Construction job cuts hit a 5-year high

According to a report from S&P Global UK Construction, the pace of UK housebuilding continues to contract. This is based on the index of UK Construction Purchasing Managers, which remains below the 50% mark, giving cause for concern.

Alarm bells were ringing as the company also said that redundancies in the industry were the worst since 2020, when the UK was recovering from Covid. The news comes after the Chancellor, Rachel Reeves, announced that the government hopes to recruit 60,000 new construction workers, as it aims to build 1.5m before the current parliament ends at the latest in 2029.

How many people train for apprenticeships

The target of 60,000 seems optimistic, since in 2023/24, just 33,000 apprentices were recruited in the UK, says the Construction Industry Training Board. Furthermore, just 21% of construction companies employ an apprentice and only 10% employ more than two.

Figures provided by the British Association of Construction Heads as recently as 2023 showed only 8,620 apprentices completed their apprenticeship. That’s a tiny proportion of the number of workers needed in future years. The drop-out rate was nudging 50%.

Are there other job opportunities in the construction industry?

Although the Chancellor referred to “brickies” and “chippies”, the construction industry employs structural engineers, architects and many more professionals. However, there is another area of employment which is often overlooked, and that involves builders merchants jobs.

If this area of specialist retail appeals, you will find Builders Merchants Jobs at BM Careers, as well at many more sites online.

What is behind the fall in construction jobs?

Although some civil engineering projects showed consistent performance and commercial projects held steady, house building continued to suffer. The impact of the government’s latest proposals will have some impact, but training and re-employing workers who have left the industry will have to be a priority. Hence the interest in supporting industries such as builders merchants.

Industry experts have also pointed to wage inflation, the squeeze on margins, the rising costs of imported materials and subdued demand as reasons for the decline in the number of workers in the sector.

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