CSN Industry Outlook - 2021-2025
The Construction Skills Network (CSN) provides insights into the UK construction economy and its labour market intelligence.
The data it produces highlights trends and how the industry will change year-on-year, allowing governments and businesses to understand the current climate and plan for the future.
CSN 2021-2025 forecasts that UK construction output will return to pre-Covid-19 levels in 2022, driven in part by the vaccine programme and extensive government support, but also because many construction businesses were able to stay open and adapt rapidly to the new environment. We expect output to grow at an average rate of 4.4% across 2021-2025, meaning that construction will need to recruit an extra 217,000 workers, or over 43,000 per year.
The latest CSN summary, produced with Experian, indicates that the UK construction industry is recovering swiftly from the economic impact of Covid-19, with infrastructure and private housing leading recovery.
4.1% annual average output growth rate should lead to Wales needing to recruit an additional 1,850 construction workers per annum to meet industry demand for works.
Private housing and infrastructure works are driving Scotland’s construction output, which will grow by an annual average rate of 4.1%.
6.7% annual average growth forecasted for private housing work from the end of 2020 to the end of 2025 and will be a key sector for Northern Ireland.
The North East will have an annual recruitment requirement of 1.4% based on 2020 workforce levels, which is the same as the UK.
Private housing and commercial works are the main drivers behind the North West’s 4.5% annual average growth in construction output.
Yorkshire and Humber
Yorkshire and Humber’s level of annual average recruitment requirement exceeds that of the UK, at 1.8% per year based on 2020 workforce levels.
Output will grow by an annual average rate of 4.0% from the end of 2020 to the end of 2025 for the East Midlands, with private housing expected to have the fastest sector growth.
West Midlands construction industry would have to increase current recruitment by 5,000 new workers each year to deliver the expected work between the end periods of 2020 and 2025.
East of England
Infrastructure is one of the key drivers in the East of England’s annual average output growth of 4.2%, which includes the £2bn Lower Thames Crossing Point project.
The Greater London construction industry would have to increase current recruitment by 3,450 new workers each year to deliver the expected work between the end periods of 2020 and 2025.
South East’s private housing growth is forecasted at annual average rate of 6.9% and infrastructure at 5.4% from the end of 2020 to the end of 2025, both of which exceed their respective UK averages.
South West’s construction industry would have to increase current recruitment by 6,400 new workers each year to deliver the expected work between the end periods of 2020 and 2025.
An overview of the underpinning methods that are used by the CSN, working in partnership with Experian, to produce the suite of reports at a UK, national and regional level.
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