Study reveals crucial role of construction sector
Construction is the number one sector for job creation, according to independent research.
The report, Construction in the UK economy: the benefits of investment, reveals that every £1 spent on construction leads to an increase in GDP of £2.84, with spending not only creating construction output worth £1, but responsible for £1.84 of growth elsewhere in the economy.
Construction employment is particularly significant to many regional and local economies, with 60% of the British workforce based in regions where unemployment is higher than average, or would be without construction.
And the industry currently employs many lower skilled workers who are typically most vulnerable during recession, the report - by LEK Consulting in partnership with the CBI - warns.
Areas including Carmarthenshire, Renfrewshire, mid Suffolk and north Cornwall enjoy below average unemployment levels thanks to high levels of construction jobs.
But a lack of demand for construction in places such as Merthyr Tydfil, the Wirral and Southampton has seen them hit by above average unemployment levels.
As a result, the report is calling for the government to safeguard investment in the industry, predicting that any expenditure cuts would trigger ‘significant immediate and enduring negative consequences for the UK’.
John Cridland, CBI deputy director general, said: ‘A strong economy needs fit-for-purpose schools and hospitals, and it will be the construction industry that builds the new transport and energy infrastructure needed to shift to a low carbon economy.
‘This timely report outlines the essential relationship between the construction sector and other parts of the economy, as well as its important contribution to numerous other social and economic objectives, including regional development and employment.’
by (JavaScript must be enabled to view this email address)
