A Gleeds survey has found that stakeholders in the construction industry believe EU labour won’t solve the labour workforce crisis in the UK
Gleeds’ spring Market Report found that 65% of respondents in the UK’s construction industry don’t think that easing restrictions on EU workers will improve the workforce crisis. Many believe that EU restrictions are one of the biggest inhibitors to growth. However, 85% of workers in the construction industry support the change in government attitude.
Less than 50% of respondents believe that the measures set out in the ‘back to work’ budget will have any impact on UK’s workforce crisis. The skills shortage means that many contractors reported declining tender opportunities in the last quarter.
The workforce crisis is an increasing concern for industry stakeholders
In total, 17% of respondents identified the workforce crisis as the top threat to the construction industry. This increased from 9% in Gleeds’ winter report.
Another report examined 20 industries in the UK and found that the construction industry was the 7th most affected by the workforce crisis. Currently, there are over 34,000 vacant positions on LinkedIn in the construction industry. However, only around 2,900 people are actively searching for construction jobs in the UK; therefore, there is a risk that just one in ten roles in the construction industry will be filled.
Investor confidence was found to be the biggest concern for most respondents. Over 80% said that previous forecasts of negative growth and stagflation would impact investment opportunities.
“Overall, the outlook for the industry appears much improved, but it’s clear that considerable risks remain. The availability and cost of labour continue to pose a significant threat to productivity and the workforce crisis, prompting the government’s unprecedented move to revise its shortage occupation list by the summer,” said Gleeds CEO Graham Harle.
“Feedback from a significant number who completed our survey was that the decision by the Home Office was little more than a sticking plaster, with training, development, and a more considered long-term strategy needed to create a sustainable pipeline of workers,” he continued.
The spring budget has buoyed the construction industry
In more positive news, nearly 60% of respondents said that investments announced in the spring budget would offer some certainty in the supply chain. As well as this, 65% felt more confident following the news that the UK would avoid recession.
The survey also highlighted the potential for Artificial Intelligence (AI) to improve productivity. According to the survey, 61% of contractors and 52% of non-contractor think that AI will impact their role in the future. Nearly 30% of respondents said they had used an AI tool in their workplace already.
