Job fears as building industry set to stagnate

Construction employment in Yorkshire and Humber is predicted to fall by six per cent in 2012, double the national average, as the industry will need fewer skilled staff, according to a report today from the Construction Skills Network.

The number of people employed in the industry in Yorkshire and Humber will reach 216,310 by 2016, which is three per cent higher than 2012 forecasted levels. However, this remains seven below the 2010 level.

The report, produced by CITB-ConstructionSkills, the Sector Skills Council and Industry Training Board for the construction industry said that while the longer-term forecast is promising, there is some concern in the industry that job losses in the short-term will result in a skills shortage when activity picks up in the sector.

Steve Housden, sector strategy manager for CITB-ConstructionSkills in Yorkshire and Humber, said: “Times are tough, and the effects are being felt particularly heavily by tradespeople and labourers. While the forecast for 2016 gives reason for optimism, there is a real danger that the industry will not have the skills it needs to complete major projects in the longer term.”

The industrial sector is projected to be the most buoyant in Yorkshire, growing at an annual average rate of 6.6 per cent. The private housing and commercial sectors are also expected to see growth rates of five per cent and 1.4 per cent respectively thanks to a cash injection from projects such as the £100m Chinese styled theme park in Rotherham.

Public non-housing and public housing in comparison are expected to see the biggest declines in output with the cancellation of the Building Schools for the Future campaign a major factor. Despite investment from the government in infrastructure and major schemes such as the M62 managed motorway, Yorkshire and Humber will see a fall at an annual average rate of -2.8 per cent.

Across the rest of the country there is an emergence of a north/south divide. A number of major infrastructure projects announced for the South East, the East of England and Greater London will create sustained growth over the next five years.