How will Brexit affect the skills shortage?

Steve Radley, Policy Director of the Construction Industry Training Board (CITB) discusses how a potential no-deal Brexit may affect the construction industry’s access to skilled labour and what projects like the Construction Skills Fund (CSF) are doing to mitigate this.

Whether the UK leaves the EU without a deal, or pro-remain MPs ensure this doesn’t happen, even the most seasoned experts are struggling to predict the outcome of Brexit negotiations.

CITB research shows that more than 168,000 skilled workers will be needed by 2022 to meet current construction requirements and with migrant workers playing such an important role in sustaining our industry, construction employers are watching events closely.

Labour Force Survey data shows that in 2017 non-UK workers made up 14.5% of the UK construction workforce, many from the EU. Yet CITB’s most recent Dip Survey revealed that to date only 3% of construction employers have made any changes because of Brexit. CITB is therefore prioritising the development of accredited training schemes such as the Construction Skills Fund (CSF) to address the skills crisis and potential shortages of skilled labour should a no-deal Brexit happen.

The CSF is a £22M project designed to deliver 13,000 new site-ready workers into construction by March 2020. The project is funded by the Department for Education (DfE) and run by the CITB, and works alongside other key projects to increase and improve the availability of trained workers in construction.

A total of 26 projects across England have received funding support to contribute to the development and success of on-site training ‘Hubs’. These hubs offer hands-on experience to candidates, delivering theoretical and practical education on large housing developments and infrastructure projects. One of the main aims is to offer trainees the chance to build the skills they need to secure opportunities in the construction industry that may otherwise have been unavailable.

Successful candidates who complete their training at the hubs will help contribute to the skilled workers needed to meet current targets, and will be site-ready and able to work full-time in construction. This in turn will enable the industry to meet targets for new homes and infrastructure as set out in the government’s industrial strategy.

Currently, more than 2,500 candidates have been trained on the hubs and have commenced life-changing journeys to become fully qualified and able to join the construction industry. Many candidates signing up to the CSF are previously unemployed or come from underrepresented groups such as women, BAME, and people with disabilities.

2,800 candidates have currently completed their training at the on-site hubs and are now site ready to join the construction industry. The CSF has also made a difference to over 650 learners who have received job offers from local construction employers, as well as a further 340 who have obtained an offer for a job with sustained employment or engagement. The project has also seen 1,227 candidates come from non-traditional entry routes or groups currently underrepresented in construction, who account for around 45% of all learners.

We’ve found that around 80% of migrant workers in construction expect to stay over the short term, and 22% expect to definitely leave the UK at some point, but there may be significant shortages of EU nationals coming in. Therefore, the CSF candidates are helping us increase diversity within the sector and reduce the potential impact of fewer migrant workers. The success of the project and high number of candidates enrolled in sustained employment also highlights the importance of schemes like this to address the skills shortage, innovate the industry and address questions about how new policies around migration may impact recruitment.

We hope that our projects and funding opportunities will help construction employers and the industry attract new talent and upskill the UK workforce, while also prepare for a changing labour market. Although the CSF is off to a good start, we are still calling for a transition phase for the new immigration system to ensure the industry meets targets and can still access the skilled workforce it needs.

No matter the outcome of Brexit, our industry can only survive and thrive if we continue to attract new talent, offer projects like the CSF and consider innovative methods of recruitment and working to keep productivity and employee levels high.

At CITB we are committed to working closely with everyone in our industry and the government to prepare for the future, safeguard interests of employers and employees, and help to build a better Britain.

For more information about the Construction Skills Fund, please click here.

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