REC Report: Construction Labour Skills Shortage is Suffocating’ Growth

Construction’s labour shortage continues to stifle growth with demand for both permanent and temporary workers rising month on month.

The Recruitment & Employment Confederation’s (REC) monthly Report on Jobs indicates still robust growth of demand for staff across the construction industry during October, even though the rate of growth appears to have slowed a little.

Adjusted for seasonal factors, the index for permanent workers in the construction sector fell from 64.7 in September to 62.8 in October. The latest reading was indicative of a sharp, although softer, expansion in permanent vacancies and one that was stronger than the UK-wide trend (62.1).

The equivalent index for temporary workers fell from 56.5 in September to a 21-month low of 55.5. Nonetheless, the latest figure was still consistent with a marked rate of expansion, the REC said. The index for short-term staff in the construction sector remained below the UK economy average (59.7).

A score above 50 indicates that demand for jobs is greater than a month ago; below 50 indicates demand has softened. Construction employment demand has now been growing every month since early 2013.