Massive job cuts in construction but initiative to boost apprenticeships?

Before the current economic downturn the predictions had generally been an increase of around 1% yearly in demand for construction workers in London. However, this increased demand did not necessarily mean more Londoners being employed in construction. With the recession taking hold the outlook is beginning to look bleak for construction workers – whether they are Londoners or travel to the capital for work.

Late last year The Royal Institute of Chartered Surveyors (RICS) said new orders in the industry had fallen by more than a third and were likely to fall further. The National House Building Council reported that the number of homes started in 2008 was almost half the number started in the previous year. They said that at least 300,000 construction jobs could be lost in the next few years unless the Government brings forward a number of "much-needed" projects (such as plans to renovate schools, upgrade railways, build new hospitals and houses and reconsider shelved transport schemes).

However, the current recession is not bad for all construction staff. Graham Watts, Chief Executive of the Construction Industry Council, believes there are currently lots of construction jobs around for workers in certain sectors. He said: "I've talked to companies working in infrastructure or working the roads, railway tunnels et cetera and, by and large, their order books are still quite buoyant because there is a lot of infrastructural work around." 

ConstructionSkills have welcomed the Government’s drive to create new construction apprenticeships through procurement of new construction work over the coming years. By requiring successful contractors to have apprentices work on the project, it is thought that such a move could help deliver upwards of 7,000 apprenticeships in the next three years. However, the Sector Skills Council for the industry also warned that this could be a tough challenge in today’s economic environment without some added incentives to firms who provide this training. Mark Farrar, Chief Executive, said: “… we need to consider what additional incentives can be provided to SMEs and main contractors to deliver apprenticeship places.”

In the Central London Connexions area the picture for school and college leavers in 2009 so far looks fairly similar to 2008. Most companies have not yet announced apprenticeship numbers for this summer but, with the exception of the RICS, none have said they will not be recruiting this year (yet).

Before the current economic downturn the predictions had generally been an increase of around 1% yearly in demand for construction workers in London. However, this increased demand did not necessarily mean more Londoners being employed in construction. With the recession taking hold the outlook is beginning to look bleak for construction workers – whether they are Londoners or travel to the capital for work.

Late last year The Royal Institute of Chartered Surveyors (RICS) said new orders in the industry had fallen by more than a third and were likely to fall further. The National House Building Council reported that the number of homes started in 2008 was almost half the number started in the previous year. They said that at least 300,000 construction jobs could be lost in the next few years unless the Government brings forward a number of "much-needed" projects (such as plans to renovate schools, upgrade railways, build new hospitals and houses and reconsider shelved transport schemes).

However, the current recession is not bad for all construction staff. Graham Watts, Chief Executive of the Construction Industry Council, believes there are currently lots of construction jobs around for workers in certain sectors. He said: "I've talked to companies working in infrastructure or working the roads, railway tunnels et cetera and, by and large, their order books are still quite buoyant because there is a lot of infrastructural work around." 

ConstructionSkills have welcomed the Government’s drive to create new construction apprenticeships through procurement of new construction work over the coming years. By requiring successful contractors to have apprentices work on the project, it is thought that such a move could help deliver upwards of 7,000 apprenticeships in the next three years. However, the Sector Skills Council for the industry also warned that this could be a tough challenge in today’s economic environment without some added incentives to firms who provide this training. Mark Farrar, Chief Executive, said: “… we need to consider what additional incentives can be provided to SMEs and main contractors to deliver apprenticeship places.”

In the Central London Connexions area the picture for school and college leavers in 2009 so far looks fairly similar to 2008. Most companies have not yet announced apprenticeship numbers for this summer but, with the exception of the RICS, none have said they will not be recruiting this year (yet).