Although recruitment spiked considerably at the end of 2022, dwindling applicant numbers suggest that employers may face construction talent recruitment challenges in Q1 2023, according to new research from APSCo
The research from APSCo revealed that while vacancies were consistently higher throughout 2022, December saw a significant jump in jobs advertised. There were 21,367 roles in the final month of 2022, constituting a month-on-month rise of 121.4%.
While this huge rise in demand at the end of the year indicates the sector bolstering resources ahead of the New Year, application numbers fell considerably in December, down 53% month-on-month.
Although a drop in applicants over the festive period is expected, such an acute fall in applicants is a sign that the sector is facing construction talent recruitment challenges due to Brexit and ongoing skills shortages.
Salaries across the sector are not in line with the rate of inflation
The study also showed that whilst salaries were slightly higher in 2022 compared to the previous year, the increase was not in line with the inflation rate.
From 20 June 2022, The Building Allied Trades Joint Industrial Council (BATJIC) agreed that there would be a 5% rise in all various wage rates, including apprentices and trainees. However, as inflation and the cost of living crisis in the UK continues, many people have to choose between heating their homes and paying rent, with 45% of renters having seen an increase in rent since April 2022.
In just October last year, workers showed concern over the increasing price of living in line with job salary after GMB union workers protested outside of the Engineering Construction Industry Association headquarters in central London due to disputes over the cost of accommodation and food prices whilst working away.
Considering this, employers may face construction talent recruitment challenges unless more is done to address remuneration packages and offer workers more secure and assured pay as living costs soar.
Self employed construction sector, I can only see a recession giving me a pay cut without even taking into account the rise in material costs and any pay rise for employees, having said that I can’t see why people aren’t demanding that any pay rise should keep pace with inflation
— TOTP (@totpogo) December 18, 2022
There is already a massive skills shortage in the uk construction industry due to under investment for decades, compounded by Brexit. We should be doing more to promote apprenticeships or we’ll end up not being able to build anything in 20 years time
— Surrey Cyclist (@CyclistSurrey) January 4, 2023
A fall in application numbers when skills demand is a growing concern
Ann Swain, CEO of APSCo, commented: “While 2022 saw general demand for construction experts up on 2021 figures, the sudden spike towards the end of the year suggests the sector is preparing for significant demand in the year ahead. The fall in application numbers at a time when demand is growing is a concern.
“Brexit did create a talent exodus in construction, leading to limited resources and more competition for the best professionals. However, with the number of active job seekers now falling, businesses and recruiters will face a tougher challenge to hire across the sector.”
