Migrant labour vital to construction but can’t be a substitute for training, says CIOB

CIOB has come out and said what the industry always knew but was not so happy to admit which is that immigrant workers are vital to the sector and without them the construction economy would be seriously damaged.

Jackie Whitelaw
03 March 2015

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The report – ‘CIOB perspectives: An analysis of migration in the construction sector’ comes at a time when, according to the British public, immigration has never been a more important issue with loud voices calling for tight restrictions on new migrants.

CIOB concluded that free movement of labour has always been in the DNA of construction, creating a highly flexible workforce.  And it said that with an upturn in construction work, firms will inevitably look to short term fixes overseas to fill skills shortages. Current projections by CITB are that the industry needs 224,000 new recruits by 2019 – it is unlikely all of those can be found at home.

“It is 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" - CIOB CEO Chris Blythe

But, CIOB said, with huge demand for future construction work, the industry must look to young UK people as the future of their workforce.

“It is 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," said CIOB chief executive Chris Blythe.

“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.”

However CIOB recognised that relying on migrant labour was not the single solution to skills shortages. Industry needed to train more people at home.

“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.

The report concluded that:

• Migration is necessary to construction. It dampens the harmful effects of having a volatile labour market – hired one day in a boom, laid off the next in a recession. Tight regulation of migration would damage construction activity in the UK.
• The greatest opportunity to expand the UK base of expertise in construction lies in boosting overseas activity. A perception of having closed borders would greatly weaken the UK’s prospects of expanding its positive balance in construction-related trade.
• Construction firms will be attracted to draw more heavily on migrant workers as the industry emerges from recession.
• Without regulatory control, the most effective way to reduce migration into construction jobs is to invest heavily in training, mentoring and developing young UK citizens. This would also reduce the burden of youth unemployment.
• To reduce skills shortages, the industry must find ways to retain older workers – 19% of the workforce are set to retire in five to 10 years.
• To reduce the migrant flows into and out of the construction industry, investment in the built environment needs to be clearly planned and consistent to reduce volatility in demand nationally, locally and by sector.