The construction industry is facing a slowdown in growth in the aftermath of the EU referendum vote, according to the Construction Industry Training Board (CITB).
The CITB writes:
The latest Construction Skills Network report reveals that construction’s expected output over the next five years now averages 2% per annum – down from 2.5% in the forecast from January this year.
The remainder of 2016 and 2017 however, will see a period of limited growth and potentially a small contraction of -0.2%.
The sector’s employment growth rate has also been revised down. The annual UK-wide recruitment requirement has fallen by a third, from 232,000 to 157,000.
Over the next five years, the industry will now need 25,350 new workers every year in England, 3,540 in Wales, 1,810 in Scotland and 650 in Northern Ireland.
While the average output is 2%, there is a varied picture across the UK. Wales’ average growth rate remains well above average at 5.7% and in England, the South West (2.8%) and North West (2.2%) present the strongest regional outlook.
Scotland (-0.6%), the North East of England (-0.1%) and the East Midlands (-0.2%) are all predicted to contract.
The biggest shift in the forecast is for the Greater London region where growth has fallen two percentage points from 3.5% in January’s forecast to 1.5%.
View the latest Construction Skills Network report
