Noble Francis’ Post

The UK construction workforce fell again in 2024 Q2, according to the latest ONS data. In 2024 Q2, there were 2.04 million workers in construction, which is 5.1% lower than a year ago, and it was at its lowest level since 2000 Q1 (Upper Chart). It was also 385,286 (15.9%) lower than at the recent peak in 2019 Q1 and 523,572 workers (21.0%) lower than at the peak in 2008 Q3, which was before the impacts of the financial crisis. Unsurprisingly, the main reasons for the sharp decline in the workforce are double-digit falls in the 2 largest sectors: housing new build rm&i.   The key losses in the UK construction workforce have been in self-employment (Lower Chart) and in the old-age demographic (see link in comments). The end of 'grandfather rights' for CSCS cards this year means many of these workers will not return even in the medium-term, as they will be unable to work onsite without retraining (and are often unwilling to retrain to do a job they have already been doing for years). So, the workforce is likely to take a very long time to get back to 2019 Q1 levels. Note that even at the recent peak of UK construction employment in 2019 Q1, it was still 157,483 workers lower than at the pre-financial crisis peak in 2008 Q3, so sharp downturns cause both a temporary and permanent loss of construction workers that higher wages do not fully address as workers that lose their jobs are burnt by construction in downturns and often go to other industries where employment is less volatile. Clearly, the 'grandfather rights' for CSCS cards issue will exacerbate issues following the latest housing downturn, as these workers will be unable to work onsite without retraining although, in theory, they could still work in rm&i when demand picks up. Also, note that CITB reports construction apprenticeship starts averaged 31,000 per year over the last 5 years, and the dropout rate is over 40%. So, apprenticeships will not address the loss in the UK construction workforce even medium-term as it will take a long time, a change in culture and sustained investment over many years to increase the number of skilled trainers, increase the number of construction apprenticeship starts and reduce the high dropout rates. Skills shortages will be the biggest constraint to government's ambitions of 1.5 million homes in this five-year parliament, the £700-775 billion infrastructure pipeline and the Net Zero transition (both the decarbonisation of the energy network and the energy-efficient retrofitting of the existing housing and non-housing stock). #ukhousing #ukconstruction #ukbuilders #builders #constructionuk #buildersuk #ukbuilding #buildinguk #constructionindustry #constructionworkers #constructionworker #constructionwork #housebuilding #labour #buildingcontractors #energyefficiency #energyefficiencyretrofit #retrofit #netzero #housebuilding #constructionskills #skillshortage #skillshortages #skills

The UK construction workforce fell again in 2024 Q2, according to the latest ONS data. In 2024 Q2, there were 2.04 million workers in construction, which is 5.1% lower than a year ago, and it was at its lowest level since 2000 Q1 (Upper Chart). It was also 385,286 (15.9%) lower than at the recent peak in 2019 Q1 and 523,572 workers (21.0%) lower than at the peak in 2008 Q3, which was before the impacts of the financial crisis. Unsurprisingly, the main reasons for the sharp decline in the workforce are double-digit falls in the 2 largest sectors: housing new build rm&i.   The key losses in the UK construction workforce have been in self-employment (Lower Chart) and in the old-age demographic (see link in comments). The end of 'grandfather rights' for CSCS cards this year means many of these workers will not return even in the medium-term, as they will be unable to work onsite without retraining (and are often unwilling to retrain to do a job they have already been doing for years). So, the workforce is likely to take a very long time to get back to 2019 Q1 levels. Note that even at the recent peak of UK construction employment in 2019 Q1, it was still 157,483 workers lower than at the pre-financial crisis peak in 2008 Q3, so sharp downturns cause both a temporary and permanent loss of construction workers that higher wages do not fully address as workers that lose their jobs are burnt by construction in downturns and often go to other industries where employment is less volatile. Clearly, the 'grandfather rights' for CSCS cards issue will exacerbate issues following the latest housing downturn, as these workers will be unable to work onsite without retraining although, in theory, they could still work in rm&i when demand picks up. Also, note that CITB reports construction apprenticeship starts averaged 31,000 per year over the last 5 years, and the dropout rate is over 40%. So, apprenticeships will not address the loss in the UK construction workforce even medium-term as it will take a long time, a change in culture and sustained investment over many years to increase the number of skilled trainers, increase the number of construction apprenticeship starts and reduce the high dropout rates. Skills shortages will be the biggest constraint to government's ambitions of 1.5 million homes in this five-year parliament, the £700-775 billion infrastructure pipeline and the Net Zero transition (both the decarbonisation of the energy network and the energy-efficient retrofitting of the existing housing and non-housing stock). #ukhousing #ukconstruction #ukbuilders #builders #constructionuk #buildersuk #ukbuilding #buildinguk #constructionindustry #constructionworkers #constructionworker #constructionwork #housebuilding #labour #buildingcontractors #energyefficiency #energyefficiencyretrofit #retrofit #netzero #housebuilding #constructionskills #skillshortage #skillshortages #skills

The UK construction workforce fell again in 2024 Q2, according to the latest ONS data. In 2024 Q2, there were 2.04 million workers in construction, which is 5.1% lower than a year ago, and it was at its lowest level since 2000 Q1 (Upper Chart). It was also 385,286 (15.9%) lower than at the recent peak in 2019 Q1 and 523,572 workers (21.0%) lower than at the peak in 2008 Q3, which was before the impacts of the financial crisis. Unsurprisingly, the main reasons for the sharp decline in the workforce are double-digit falls in the 2 largest sectors: housing new build rm&i.   The key losses in the UK construction workforce have been in self-employment (Lower Chart) and in the old-age demographic (see link in comments). The end of 'grandfather rights' for CSCS cards this year means many of these workers will not return even in the medium-term, as they will be unable to work onsite without retraining (and are often unwilling to retrain to do a job they have already been doing for years). So, the workforce is likely to take a very long time to get back to 2019 Q1 levels. Note that even at the recent peak of UK construction employment in 2019 Q1, it was still 157,483 workers lower than at the pre-financial crisis peak in 2008 Q3, so sharp downturns cause both a temporary and permanent loss of construction workers that higher wages do not fully address as workers that lose their jobs are burnt by construction in downturns and often go to other industries where employment is less volatile. Clearly, the 'grandfather rights' for CSCS cards issue will exacerbate issues following the latest housing downturn, as these workers will be unable to work onsite without retraining although, in theory, they could still work in rm&i when demand picks up. Also, note that CITB reports construction apprenticeship starts averaged 31,000 per year over the last 5 years, and the dropout rate is over 40%. So, apprenticeships will not address the loss in the UK construction workforce even medium-term as it will take a long time, a change in culture and sustained investment over many years to increase the number of skilled trainers, increase the number of construction apprenticeship starts and reduce the high dropout rates. Skills shortages will be the biggest constraint to government's ambitions of 1.5 million homes in this five-year parliament, the £700-775 billion infrastructure pipeline and the Net Zero transition (both the decarbonisation of the energy network and the energy-efficient retrofitting of the existing housing and non-housing stock). #ukhousing #ukconstruction #ukbuilders #builders #constructionuk #buildersuk #ukbuilding #buildinguk #constructionindustry #constructionworkers #constructionworker #constructionwork #housebuilding #labour #buildingcontractors #energyefficiency #energyefficiencyretrofit #retrofit #netzero #housebuilding #constructionskills #skillshortage #skillshortages #skills

The UK construction workforce fell again in 2024 Q2, according to the latest ONS data. In 2024 Q2, there were 2.04 million workers in construction, which is 5.1% lower than a year ago, and it was at its lowest level since 2000 Q1 (Upper Chart). It was also 385,286 (15.9%) lower than at the recent peak in 2019 Q1 and 523,572 workers (21.0%) lower than at the peak in 2008 Q3, which was before the impacts of the financial crisis. Unsurprisingly, the main reasons for the sharp decline in the workforce are double-digit falls in the 2 largest sectors: housing new build rm&i.   The key losses in the UK construction workforce have been in self-employment (Lower Chart) and in the old-age demographic (see link in comments). The end of 'grandfather rights' for CSCS cards this year means many of these workers will not return even in the medium-term, as they will be unable to work onsite without retraining (and are often unwilling to retrain to do a job they have already been doing for years). So, the workforce is likely to take a very long time to get back to 2019 Q1 levels. Note that even at the recent peak of UK construction employment in 2019 Q1, it was still 157,483 workers lower than at the pre-financial crisis peak in 2008 Q3, so sharp downturns cause both a temporary and permanent loss of construction workers that higher wages do not fully address as workers that lose their jobs are burnt by construction in downturns and often go to other industries where employment is less volatile. Clearly, the 'grandfather rights' for CSCS cards issue will exacerbate issues following the latest housing downturn, as these workers will be unable to work onsite without retraining although, in theory, they could still work in rm&i when demand picks up. Also, note that CITB reports construction apprenticeship starts averaged 31,000 per year over the last 5 years, and the dropout rate is over 40%. So, apprenticeships will not address the loss in the UK construction workforce even medium-term as it will take a long time, a change in culture and sustained investment over many years to increase the number of skilled trainers, increase the number of construction apprenticeship starts and reduce the high dropout rates. Skills shortages will be the biggest constraint to government's ambitions of 1.5 million homes in this five-year parliament, the £700-775 billion infrastructure pipeline and the Net Zero transition (both the decarbonisation of the energy network and the energy-efficient retrofitting of the existing housing and non-housing stock). #ukhousing #ukconstruction #ukbuilders #builders #constructionuk #buildersuk #ukbuilding #buildinguk #constructionindustry #constructionworkers #constructionworker #constructionwork #housebuilding #labour #buildingcontractors #energyefficiency #energyefficiencyretrofit #retrofit #netzero #housebuilding #constructionskills #skillshortage #skillshortages #skills

The UK construction workforce fell again in 2024 Q2, according to the latest ONS data. In 2024 Q2, there were 2.04 million workers in construction, which is 5.1% lower than a year ago, and it was at its lowest level since 2000 Q1 (Upper Chart). It was also 385,286 (15.9%) lower than at the recent peak in 2019 Q1 and 523,572 workers (21.0%) lower than at the peak in 2008 Q3, which was before the impacts of the financial crisis. Unsurprisingly, the main reasons for the sharp decline in the workforce are double-digit falls in the 2 largest sectors: housing new build rm&i.   The key losses in the UK construction workforce have been in self-employment (Lower Chart) and in the old-age demographic (see link in comments). The end of 'grandfather rights' for CSCS cards this year means many of these workers will not return even in the medium-term, as they will be unable to work onsite without retraining (and are often unwilling to retrain to do a job they have already been doing for years). So, the workforce is likely to take a very long time to get back to 2019 Q1 levels. Note that even at the recent peak of UK construction employment in 2019 Q1, it was still 157,483 workers lower than at the pre-financial crisis peak in 2008 Q3, so sharp downturns cause both a temporary and permanent loss of construction workers that higher wages do not fully address as workers that lose their jobs are burnt by construction in downturns and often go to other industries where employment is less volatile. Clearly, the 'grandfather rights' for CSCS cards issue will exacerbate issues following the latest housing downturn, as these workers will be unable to work onsite without retraining although, in theory, they could still work in rm&i when demand picks up. Also, note that CITB reports construction apprenticeship starts averaged 31,000 per year over the last 5 years, and the dropout rate is over 40%. So, apprenticeships will not address the loss in the UK construction workforce even medium-term as it will take a long time, a change in culture and sustained investment over many years to increase the number of skilled trainers, increase the number of construction apprenticeship starts and reduce the high dropout rates. Skills shortages will be the biggest constraint to government's ambitions of 1.5 million homes in this five-year parliament, the £700-775 billion infrastructure pipeline and the Net Zero transition (both the decarbonisation of the energy network and the energy-efficient retrofitting of the existing housing and non-housing stock). #ukhousing #ukconstruction #ukbuilders #builders #constructionuk #buildersuk #ukbuilding #buildinguk #constructionindustry #constructionworkers #constructionworker #constructionwork #housebuilding #labour #buildingcontractors #energyefficiency #energyefficiencyretrofit #retrofit #netzero #housebuilding #constructionskills #skillshortage #skillshortages #skills

The UK construction workforce fell again in 2024 Q2, according to the latest ONS data. In 2024 Q2, there were 2.04 million workers in construction, which is 5.1% lower than a year ago, and it was at its lowest level since 2000 Q1 (Upper Chart). It was also 385,286 (15.9%) lower than at the recent peak in 2019 Q1 and 523,572 workers (21.0%) lower than at the peak in 2008 Q3, which was before the impacts of the financial crisis. Unsurprisingly, the main reasons for the sharp decline in the workforce are double-digit falls in the 2 largest sectors: housing new build rm&i.   The key losses in the UK construction workforce have been in self-employment (Lower Chart) and in the old-age demographic (see link in comments). The end of 'grandfather rights' for CSCS cards this year means many of these workers will not return even in the medium-term, as they will be unable to work onsite without retraining (and are often unwilling to retrain to do a job they have already been doing for years). So, the workforce is likely to take a very long time to get back to 2019 Q1 levels. Note that even at the recent peak of UK construction employment in 2019 Q1, it was still 157,483 workers lower than at the pre-financial crisis peak in 2008 Q3, so sharp downturns cause both a temporary and permanent loss of construction workers that higher wages do not fully address as workers that lose their jobs are burnt by construction in downturns and often go to other industries where employment is less volatile. Clearly, the 'grandfather rights' for CSCS cards issue will exacerbate issues following the latest housing downturn, as these workers will be unable to work onsite without retraining although, in theory, they could still work in rm&i when demand picks up. Also, note that CITB reports construction apprenticeship starts averaged 31,000 per year over the last 5 years, and the dropout rate is over 40%. So, apprenticeships will not address the loss in the UK construction workforce even medium-term as it will take a long time, a change in culture and sustained investment over many years to increase the number of skilled trainers, increase the number of construction apprenticeship starts and reduce the high dropout rates. Skills shortages will be the biggest constraint to government's ambitions of 1.5 million homes in this five-year parliament, the £700-775 billion infrastructure pipeline and the Net Zero transition (both the decarbonisation of the energy network and the energy-efficient retrofitting of the existing housing and non-housing stock). #ukhousing #ukconstruction #ukbuilders #builders #constructionuk #buildersuk #ukbuilding #buildinguk #constructionindustry #constructionworkers #constructionworker #constructionwork #housebuilding #labour #buildingcontractors #energyefficiency #energyefficiencyretrofit #retrofit #netzero #housebuilding #constructionskills #skillshortage #skillshortages #skills

The UK construction workforce fell again in 2024 Q2, according to the latest ONS data. In 2024 Q2, there were 2.04 million workers in construction, which is 5.1% lower than a year ago, and it was at its lowest level since 2000 Q1 (Upper Chart). It was also 385,286 (15.9%) lower than at the recent peak in 2019 Q1 and 523,572 workers (21.0%) lower than at the peak in 2008 Q3, which was before the impacts of the financial crisis. Unsurprisingly, the main reasons for the sharp decline in the workforce are double-digit falls in the 2 largest sectors: housing new build rm&i.   The key losses in the UK construction workforce have been in self-employment (Lower Chart) and in the old-age demographic (see link in comments). The end of 'grandfather rights' for CSCS cards this year means many of these workers will not return even in the medium-term, as they will be unable to work onsite without retraining (and are often unwilling to retrain to do a job they have already been doing for years). So, the workforce is likely to take a very long time to get back to 2019 Q1 levels. Note that even at the recent peak of UK construction employment in 2019 Q1, it was still 157,483 workers lower than at the pre-financial crisis peak in 2008 Q3, so sharp downturns cause both a temporary and permanent loss of construction workers that higher wages do not fully address as workers that lose their jobs are burnt by construction in downturns and often go to other industries where employment is less volatile. Clearly, the 'grandfather rights' for CSCS cards issue will exacerbate issues following the latest housing downturn, as these workers will be unable to work onsite without retraining although, in theory, they could still work in rm&i when demand picks up. Also, note that CITB reports construction apprenticeship starts averaged 31,000 per year over the last 5 years, and the dropout rate is over 40%. So, apprenticeships will not address the loss in the UK construction workforce even medium-term as it will take a long time, a change in culture and sustained investment over many years to increase the number of skilled trainers, increase the number of construction apprenticeship starts and reduce the high dropout rates. Skills shortages will be the biggest constraint to government's ambitions of 1.5 million homes in this five-year parliament, the £700-775 billion infrastructure pipeline and the Net Zero transition (both the decarbonisation of the energy network and the energy-efficient retrofitting of the existing housing and non-housing stock). #ukhousing #ukconstruction #ukbuilders #builders #constructionuk #buildersuk #ukbuilding #buildinguk #constructionindustry #constructionworkers #constructionworker #constructionwork #housebuilding #labour #buildingcontractors #energyefficiency #energyefficiencyretrofit #retrofit #netzero #housebuilding #constructionskills #skillshortage #skillshortages #skills

Solving for the shortage of skilled labour in our construction industry is vital to ensuring continued economic prosperity for us all. In this Financial Post OpEd, PCL president and CEO David Filipchuk discusses how apprenticeship training, tax incentives and immigration reform are critical elements of a multi-pronged approach that embraces the construction industry as a vibrant and diverse field with real opportunities for prosperous, long-term careers.