UK Construction Sector looks rosy
The construction sector is booming and in response we’re experiencing a huge uptake in staffing need – some immediate starts, others in response to forward planning on strategic projects. And it’s no wonder really. With the UK construction activity rising at its fastest rate in 24 years and pledges from the Government to spend over £100bn in infrastructure spending there is only one way – up!
Overlay the confidence that the Chancellor has provided with the boom in the housing market and you can easily see why we have the most optimistic growth expectations since April 2017. Indeed the projections show that the UK construction industry is set to grow by 10% in 2021 alone. I don’t remember a time when the sector was this positive about anything tbh.
Evidence that supports the sector comes in the form of the monthly KPMG/REC – Report on Jobs which provides the most comprehensive guide to the UK labour market based on original survey data provided by recruitment consultancies and employers.
In July the Report on Jobs shows increased demand for staff as a result of the lifting of pandemic restrictions – demonstrated by a sharp increase in the number of permanent placements (easing only slightly from June’s all time high). The rising demand for staff and drop in candidate supply has led to an increase in starting salaries for both permanent and temporary staff, with the upturn in the latter being the steepest since November 1997. Both permanent and temporary placements in London recorded the highest level in the UK followed closely by the North and the Midlands, the South being at the bottom of the pile – but not far behind!
So, the construction sector is looking rosy, and the UK general labour market is blooming like a garden in the height of summer!