CIOB urges more training to moderate reliance on overseas workforce

Alamy

A new report from the CIOB on the UK construction sector and its reliance on foreign-born workers – along with the impact on career prospects for UK nationals and the UK’s links with overseas markets – concludes that the industry is best served by the free movement of labour.

But CIOB Perspectives: An analysis on migration in the construction sector also makes the case that government should pursue policies that help the industry invest more in training and retaining UK nationals, to moderate the inflow of overseas construction workers.

It sets out four policy options the next government could follow, arguing that:

• the “do nothing” option could promote reliance on migrant labour and harm the industry’s long-term resilience;
• tightening controls on non-EU migration would risk limiting access to the world’s best talent, and be detrimental to the UK’s reputation in export markets, while at the same time possibly prompting an increase in inward migration from the EU;

• attempting to restrict EU migration would prove very difficult to negotiate within the EU, and gaining control of our borders would probably only be possible via  “Brexit”. 

• pursuing policies that strengthen the UK’s home-grown construction talent, for instance by reducing the outflow of workers in their 50s and creating opportunities for the NEET generation.

The report examines census data and figures from the government’s Labour Force Survey to estimate that at least 10% of individuals currently employed in the UK construction sector were born overseas – with additional  migrant workers likely to have been drawn in by the recent upturn.

The 2011 census suggests that 9.6% of construction workers were born outside the British Isles, while Labour Force Survey data from 2009 puts foreign-born employment in construction at 228,000, or 10% of total industry employment.

The figures are roughly comparable with the workforce as a whole, with ONS Labour Market Statistics showing that the share of non-UK nationals in the workforce increased from 4.1% in 1998 to 9.8% in 2013. 

Commenting on the report, Chris Blythe, chief executive of the CIOB, said: “It’s essential that the voice of the construction industry is heard clearly in the migration debate so it can help shape a sensible policy that meets both its needs and those of the wider community. Globally, construction has always relied on migration to fill in gaps in the labour market – simply cutting off the supply of migrant workers risks seriously damaging the UK’s economic prospects both at home and abroad. 

“But of more importance is the need to address the fact that the industry simply does not train its own people in sufficient numbers. There can be no excuses for construction not to provide more training opportunities for young UK nationals.

“Our report contains a series of sensible recommendations that need to be considered away from the broader issue of whether the UK should be in or out of the European Union.”

The report describes how UK construction has historically been dependent on migrant labour, for instance the influx of Irish construction workers in the 1950s, and explains how the industry’s need for a highly mobile labour force creates labour supply issues not found in other industries.

Looking at the issue from employers’ point of view, it says: “There are costs in establishing links to sources of suitable migrants, but they will be significantly lower than training.

“Once arrangements between labour agents and firms are set up, they open a route to a steady if not accelerating flow of workers whose training costs fall lightly on the UK industry. This is a danger that needs watching. Construction plays a vital role in providing UK citizens, including those who may struggle with academic life, a route to a solid career.”

The report will be launched at an event in The House of Commons on 3 March 2015.