Construction workers wage rising three times quicker than UK average

A skills shortage in the construction industry has led to a rise in wages and delays in vital infrastructure work.

A report from the Royal Institute of Chartered Surveyors (RICS) has said construction wages rose by 6% in 2015, due to the major skills shortage which has affected important infrastructure work, including plans to build more homes in the UK to end the housing crisis.

The RICS UK Construction Market Survey said labour shortages were reported by 66% of construction professionals, with bricklayers and quantity surveyors also significantly short in supply. Reports from 61% of construction firms reported a sharp rise in wage costs. Almost two thirds reported financial constraints.

The shortage of housing has led to an increase in the prices of housing and rent, particularly in the London and south east.

Sally Speed, RICS Future Talent Director said: “To tackle the problem, Government must deliver a new skills strategy that will enable industry, unions, and educators to work together and deliver real solutions. Apprenticeships alone will not be enough. Ministers must look to draw a link between education, future careers and skills. Employers need to take the lead in improving skill levels, providing more vocational pathways to work and actively engaging with our country’s schools and colleges.”

The forthcoming EU referendum brings forward further concerns for the industry if Britain votes to leave the EU in 2017, as construction firms will face barriers in hiring migrant workers from Europe.

The Construction Industry Training Board forecasts that between 2015 and 2019 alone, construction will need 224,000 new workers. Data from the ONS and OECD suggests around 10% of the UK construction sectors workforce are foreign-born.

RICS said: ““While workloads are still growing at a relatively healthy pace, labour shortages in the construction sector are causing delays at different stages in the development process and leading to significant problems with project planning. More than 60% of our survey respondents said that these resulting planning delays were an impediment to growth.

“That said, industry wages are becoming increasingly attractive, and I would hope that over time this will encourage skilled workers to return to the sector, as well as drawing school leavers and graduates towards construction industry careers.”

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