Recruiters benefit from fastest ever rate of construction job creation

The rate of job creation in July across the construction sector was the fastest since 1997, when the Markit/CIPS UK Construction Purchasing Managers’ Index was launched.
Tue, 5 Aug 2014The rate of job creation in July across the construction sector was the fastest since 1997, when the Markit/CIPS UK Construction Purchasing Managers’ Index was launched.

Recruiters are benefiting from increasing activity in the sector, which has recorded its 14th successive month of growth.

Duncan Bullimore, director at Hays Construction, says: “The latest construction PMI figures show sustained growth in house building and as recruiters we see the urgency with which employers need to find people with the skills to support this growth.”

The seasonally adjusted purchasing index registered 62.4 (50.0 is neutral) in July, with the sector’s growth led by house building.

“The speed of recovery in house building continues to outpace labour supply, putting pressure on the supply of construction professionals including quantity surveyors, estimators, site managers, project managers and assistants across all disciplines and resulting in wage pressure,” says Bullimore.

The latest survey indicated a reduction in sub-contractor availability for the 13th month running and the report noted anecdotal evidence that potential skill shortages had led firms to take on more staff on to payroll as a protective measure.

Tim Moore, senior economist at Markit and author of the Markit/CIPS Construction PMI, said: “Looking ahead, a pressing concern for construction companies is the availability of materials and suitably skilled labour to support the recent growth streak.”
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