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Your CITB-ConstructionSkills Adding value to our industry: Ensuring that sufficient training and skills development takes place Sharing the cost of training.

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Presentation on theme: "Your CITB-ConstructionSkills Adding value to our industry: Ensuring that sufficient training and skills development takes place Sharing the cost of training."— Presentation transcript:

1 Your CITB-ConstructionSkills Adding value to our industry: Ensuring that sufficient training and skills development takes place Sharing the cost of training in a fragmented and highly mobile industry Providing training that mainstream training providers dont deliver Attracting and supporting new entrants so the industry has the talent pipeline it needs Limiting skills gaps and shortages CO.L.O.R Partner Meeting – 27.10.11

2 Overview of ConstructionSkills Construction Industry Training Board (1964) –Raises levy on construction sector by Act of Parliament (renewed every 3 years) –Over £100m of grants given back to the industry Sector Skills Council (2003) –Effective stakeholder engagement –Development of National Occupational Standards –Effective employer engagement –Development of Labour Market Information

3 ConstructionSkills in Scotland 120 staff based across Scotland (most mobile) working with around 10,000 construction companies (97% 10 employees or less with a further 36% self-employed) Support employers to access grants and take on apprentices Over 1,100 new Modern Apprentices taken on every year Worked with 7,000 young people and influencers in 2010 as part of activities to promote craft, technical and professional qualifications Direct engagement with employers, federations, trade unions, SQA, SCQF, Higher/Further Education, Scottish Government etc

4 Page 4 Construction output forecasts for Scotland

5 Page 5 Regional comparisons – output

6 Page 6 Employment forecasts for Scotland

7 Page 7 Employment forecasts for Scotland Total employment is expected to grow at an annual average rate of 1.1% over the five-year period, down from 1.4% forecast in the spring However, this is still better than the UK average of 0.6% Reasonably good growth in the labour intensive housing R&M sector is helping to drive overall employment performance Employment is projected to fall in 2012 on the back of declining output this year and next, before returning to growth in the following year Employment is predicted to be 4% higher in 2016 than its previous peak in 2008 Wood trades and interior fit out (+24%) and plant operatives (+20%) are expected to be most in demand

8 Page 8 Regional comparisons – employment

9 Page 9 Annual recruitment requirement for Scotland


11 Findings from Migration Advisory Committee Report (August 2011) Having considered the evidence available ConstructionSkills concludes there is unlikely to be any necessity for the UK construction industry to recruit workers, skilled to NQF Level 4 or above, from outside the European Economic Area for at least the next 5 years. ConstructionSkills suggests that government policy needs to offer flexibility with respect to the recruitment of migrants to the UK construction industry over short periods of up to 5 years. (Short term planning within construction companies) According to the CFR Constraints on Activity data, 59% of firms cite lack of demand as the key constraint on growth, with only 1% of firms citing labour shortages. This would suggest that there is currently surplus labour in (and available to) the construction industry than is actually required for the amount of work available.

12 Main Findings (continued) Roughly a quarter of respondents to our Employer Panel Research had reduced working hours (26%), made redundancies in permanent staff (23%) or laid off staff that were employed on a self employed or temporary basis (25%). This suggests that when an upturn in the industrys fortunes does arrive there will be ample spare capacity in the existing workforce to meet demand before recruitment needs to step up to fill the gap. Migration represents an important role in providing skilled labour for the UK construction industry. Unfortunately, there is limited reliable evidence (beyond anecdote) available that provides clarity on its impact within the construction sector. In particular there is limited evidence that differentiates European and non-European migrants in the UK construction industry

13 Migrant Worker Report (2008) Non UK/ROI nationals 200 face to face interviews with migrant workers at 292 sites Under 10% workforce accounted for by migrants Over 25% London/ROI migrants; 8% (south east); 7% (East England); no more than 3% in Scotland Largest migrant group was Eastern Europeans with 52% living in temporary accommodation Short time on site and highly mobile therefore barriers to training Preference for housing repair and maintenance projects Young and lacking in experience in the main – mostly labouring work

14 Training and Qualifications Less likely to hold a skill card or certificate than the overall workforce. Almost two-thirds (64%) had one compared to nearly three-quarters (72%) of all workers across the UK. 16% had a formal qualification relevant to construction compared to almost half (48%) of the overall workforce. Around three-fifths of those that did have a qualification had studied or trained for it in the UK. Only 6% of migrant workers had managerial or supervisory duties on site compared to 18% of the overall workforce. Again, the younger, less experienced profile of migrant workers will mean they are less likely to be placed in managerial or supervisory positions. As well as being less likely to have a formal qualification migrants were also less likely to be working towards one (10% vs. 17% of the overall workforce).

15 Less likely to say they had all the skills needed for their current job than the overall workforce (64% of migrants vs. 76% of the overall workforce). However, they were more likely to say that they needed more experience than qualifications. 10% of those without any qualifications said they needed more training or qualifications while a third said they needed more experience. Migrant workers were more likely than the overall workforce to say that they needed training in basic skills (61% vs. 24%). The demand for additional training mainly centred on language skills with four-fifths wanting to improve their spoken English and two-fifths reading and writing respectively. The potential demand for training from those who are looking to change their roles within the construction industry is similar for migrant workers as for the overall workforce. Around 1 in 6 migrants (17%) said they would like to change their role (compared to 14% of the overall workforce). The vast majority of them (76%) said that they would need further training and qualifications for their prospective new role.

16 ANY QUESTIONS? Phil Ford 07500064880

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