Trade body Construction Skills Network (CSN) has predicted 45,000 workers and tradesman will lose their jobs in 2012 as the sector output contracts by 3%.
CSN’s Labour Market Intelligence report which forecasts labour trends between 2011 and 2016 predicts the construction sector is not set to return to growth until 2014, and even by 2016 output will only be 95% of the 2008 peak.
Overall, UK construction is expected to grow 1.4% between 2011 and 2016, but the amount of growth varies in the regions. The east of England (2.9% growth), Greater London (2.5%), the south east (2.2%) and south west (2.2%) are expected to outperform the national average, with north west (-0.9%) and the west midlands (-1.1%) expected to be the worst performers.
The report also highlighted the devolved administrations in Scotland and Northern Ireland have redirected funds to capital expenditure which should help the construction industry. The report also highlighted that the major infrastructure projects, such as Hinkley Point new nuclear power station in Somerset and HS2, is not expected to add to construction growth until after 2016.