Construction optimism curtailed by ongoing skills shortages – London Business News | Londonlovesbusiness.com

Construction vacancies have rebounded to levels seen last year as optimism grows, however, progress could be curtailed by ongoing skills shortages.

That’s according to the latest research from the Association of Professional Staffing Companies (APSCo).

The data, provided by Veritone Hire, revealed that both permanent and contract vacancy numbers have rebounded to similar levels noted in 2023 after a turbulent 12 months.

This is in line with research from S&P Global which found that the construction industry grew at its fastest pace in two-and-a-half years in September.

However, this positivity is set to be hindered by the ongoing and worsening skills shortages in the industry. According to APSCo’s data, applications for permanent and contract positions declined by 35% and 41% respectively between September 2023 and September 2024, despite the recruitment bounce back.

Ann Swain, Global CEO at APSCo, said, “The construction market has remained relatively robust despite significant economic challenges over the past 12 months.

“Vacancy numbers have now rebounded to similar levels recorded at this point in September 2023 and employers are clearly feeling more confident in the economy than before the election. However, this optimism will be curtailed by the impact of ongoing skills shortages which show no sign of abating.

“We are seeing some employers turning to financial incentives to attract talent, but the reality is, if the talent isn’t there, boosting pay will have no impact.”