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Construction work demand falls to lowest level this year

Construction work demand falls to lowest level this year

According to new data from Big 4 firm KPMG and Markit, last month saw the lowest demand for workers in the construction industry since May of this year.

The permanent workers index for the sector fell to 54.9 in November, marking the lowest level for the past six months.

Other sectors

The new statistics mean that the construction industry was ranked seventh in demand across nine professions covered by the index.

However, for temporary construction staff, a drop to 49.4 from 56.4 saw the sector at the bottom of the rankings.

By comparison, temporary staff in the engineering industry saw an increase in demand from 59.8 in November 2014 to 60.3 a year later.

However, there is still a shortage of labourers across the construction supply chain.

Fast growing earnings

The report found that the construction sector also had the fastest growing average weekly earnings across any sector.

In the quarter ending September 2015, construction workers saw earnings rise by 6% year on year, contrasted with the UK economy average of 3%.

Richard Threlfall, KPMG head of infrastructure, building and construction, said: “Demand for the sector remains strong, particularly in civils and commercial, but continues to be suppressed by rising wage costs, which are causing clients to delay and re-scope schemes.”

He added, “The industry ought by now to be motoring on full throttle but it seems the road to growth is full of hairpin bends.”

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