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Construction Industry

Hardhatter.com - News for small businesses in the construction industry

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Contractor demand slows down
by Susie Hughes at 16:43 08/10/15 (News on Business)
Contractor or temporary billings increased at the weakest pace in the current 29-month period of growth, according to the latest report from agency group REC, and accountants KPMG.
Although overall demand for staff continued to increase in September, the rate of growth eased to a 26-month low. Slower rates of expansion were signalled for both permanent and temporary vacancies.

Temporary/contract staff pay growth meanwhile eased to an 18-month low and their availability also deteriorated at a slightly slower pace.

Nursing/Medical/Care was the most in-demand category for temp workers in the latest survey period. Each of the other categories also registered increased vacancies. The slowest growth was signalled for Executive/Professional staff.

Critical stage
REC chief executive Kevin Green, said: “As politicians make their big pitches to workers and to business at the party conferences, the UK jobs market is entering a new phase.

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“Talent shortages are making it increasingly difficult for employers to find quality candidates. This is now at a critical stage in the construction and engineering sectors, constituting a major threat to planned rail upgrades and housebuilding projects.

“The planned introduction of the National Living Wage is causing businesses to consider alternatives to hiring more staff and this could lead to greater automation in some sectors. This might have a positive impact on UK productivity, but it could also put the brakes on employment growth.

“Salaries are growing rapidly in the private sector as employers compete for talent. This too will have an impact on the amount of jobs businesses can create.

“It’s imperative that the government recognises these issues. We need a renewed focus on skills and progression to create a better supply of talented candidates in the long term. Meanwhile, we need the government to help businesses bring in talent from abroad.”

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