LONDON (Reuters) – Construction and engineering firms are among the worst hit by Britain’s labor shortage, according to a study that underlines the challenge for Prime Minister Keir Starmer to implement his plans to boost housing and infrastructure.
The British Chambers of Commerce (BCC) quarterly recruitment survey shows that 82% of construction and engineering companies reported recruitment problems, compared to 69% in the first three months of this year.
The problem – which is not unique to Britain – was almost as serious in other sectors, with almost 80% of transport, logistics and manufacturing companies facing similar problems, all from early 2024.
“Alarmingly, recruitment problems have increased across all sectors in recent months,” said Jane Gratton, director of public policy at the BCC. “The very strong increase in the construction sector is particularly worrying.”
Starmer has pledged to increase investment in housing and infrastructure by removing obstacles in the UK’s planning system. However, he has also pledged to reduce net migration, despite warnings from some business leaders that such a move would exacerbate hiring problems.
The BCC survey was based on responses from 4,761 companies – 91% of which were small and medium-sized businesses – received between May 13 and June 10.
