Governments blueprint on Immigration Plans – Stark Warning for Construction

The leaked document on the government’s Brexit immigration plan, obtained by The Guardian, is a frighteningly stark reminder of the threat to construction, once we leave the EU.

While the proposals are in a draft form and yet to be discussed by ministers, it is still a timely reminder that the sector cannot afford to waste any time in working out how it would deal with a sharp decline in EU labour.
Let’s remind ourselves of the numbers.

Nearly 10 per cent of the UK’s construction labour force is from the EU, with that figure rising to around a quarter in London. Indeed, Arcadis has estimated that UK construction could lose up to 215,000 workers by 2020 under a hard Brexit.
The leaked document suggests that all but the most highly skilled labour will be deterred from working in the UK.

The question is: what percentage of construction workers will be classified as ‘non-skilled’?
Much of the media coverage of the leaked report has focused on workers in hospitality and agriculture, but undoubtedly there are large swathes of construction that could get caught by this definition.
Whereas an engineer from Estonia may be given some leeway, a labourer from Lithuania could be treated differently – if the government is to get anywhere near hitting its immigration target.
With general labourers, our industry is still highly dependent on that kind of workforce and that’s where we will see pressure, come what may.

Defence secretary Michael Fallon has said people with the “right skills” will still be welcome in the UK.
The challenge then is for the industry to convince the government of the merits of workers employed in the construction sector.

“The government would be wrong to demarcate skilled workers as professionals rather than tradesmen,” Mr Farmer added. “Craft is something that is absolutely about skills; it’s more about working with your hands, but it is a skill.”

The other issue is the timescale for the changes. If the leaked plans become a reality, Britain would end the free movement of labour immediately following its exit from the EU. There is, however, mention in the document of a phased implementation, which would give some breathing space.

Ultimately, the government appears set on the idea that this is an opportunity for British firms to employ more native workers, is this really achievable? Personally I am not so sure.

Report on Jobs May 2017

As we approach the third quarter of 2017 I would like to share some recent findings from June’s edition of the report on Jobs, produced by IHS Markit and the Recruitment Employment Confederation.

At Intersect Global 2017 has so far been a good year for both permanent and contractor placements we have seen a greater demand for staff that the first six months of 2016 across the civil engineering and infrastructure sectors in which we operate.
We have seen increased demand at the more senior management level than in 2016.

The main challenge we face is sadly still very much the same as it has been since I started in this sector 18 years ago; skill shortages right across the board and for both permanent and contract jobs.

The REC’s report seems to mirror our own findings:

Growth for both permanent placement and temp billings across recruitment firms accelerated in May
Demand for staff has reached a 21 month peak
Sharpest drop in permanent candidate numbers since 2015

Commenting on the latest survey results the REC’s Director of Policy says:

“The challenges facing the next government are stark. Demand for staff is the strongest in almost two years, but the number of people available to take those jobs has plummeted
Official data shows unemployment has dropped to the lowest level since 1975 and EU Citizens are leaving the UK in droves. Employers seeking to fill vacancies are running out of options.

Skill shortages are causing headaches in many sectors, The NHS for example is becoming increasingly reliant t on short-term cover to fill gaps on hospital rotas. Meanwhile the shortage of people with cyber security skills is a particular concern in many businesses in the wake of the recent high-profile WannaCry attacks.

Whichever party forms the next government must focus on improving the employability of our young and boosting inclusion for underrepresented groups. Alongside this these figures clearly show that in many sectors we need more not fewer people so that our businesses can grow and public services continue to deliver”

Intersect Global spend most of our week searching for the skills sets our sector so desperately need. I am pleased to say that in recent months we have successfully placed commercial and operational staff with experience outside of traditional civil engineering main contracting with key tier one main contractors.
As an industry we all need to be a little more open minded to what skills sets can cross over to help fill the ever growing gap.

As ever we have a range of live permanent and contract vacancies across the rail,water, highways and infrastructure sectors on our web-site.
Many of the exclusive roles we are working on are not listed therefore if you do not see anything of interest to you please give us a call on 020 76820668 to discuss how we may be able to help you in your next career move.

In the meantime, enjoy the sunny weather this weekend and take care.

Employers using Contractors to Plug Skills Gap

As we approach half way mark of 2017 I thought it would worth sharing some statistics from this month’s JobsOutlook Survey. I hope you find it of interest.

This information is gathered from employers across every sector, what is interesting is that the construction and technical sector continues to rank amongst the highest in terms of skill shortages.

Here are some of the key findings:
89 per cent of employers will increase or maintain their temporary workforce in the next three months.

This is a rise of nine percentage points compared to findings reported in March (80 per cent), suggesting that businesses may become increasingly reliant on temporary workers.

The survey of 606 employers also reveals:   
33 per cent report having no spare workforce capacity within their organisation
46 per cent anticipate a shortage of candidates to fill permanent roles in the next year, with construction, engineering & technical, and health & social care highlighted as particular areas of concern 
In the three months to April, one third (34%) of employers felt that UK economic conditions
were improving. This is compared to 27% of employers who thought the economy was worsening. However, marginally more large employers (250+ employees) felt the economy was worsening (29%) than improving (28%). Large employers were also the least content about making hiring and investment decisions as a consequence.

The UK workforce increased by 122,000 in January–March 2017 compared to October–December 2016. Self-employment decreased by 13,000, with a 14,000 decrease in self-employed part-timers and a 1,000 increase in self-employed full time workers. Temporary employment fell by 31,000 whereas permanent employment rose by 167,000. The UK workforce was 381,000 higher than the same period in the previous year. Year-on-year, permanent employment increased by 350,000, self-employment increased by 82,000, and temporary employment fell by 68,000.

Intersect Global have a range of permanent and contract vacancies, many are listed on our website but not all are.
Please get in touch if you would like us to help you with your next career move or contract assignment. You can call us on 020 76820688 or email your details to info@intersectglobal.co.uk
In the mean time I hope you are enjoying this good weather and make the most of the Bank Holiday weekend when it comes.

Wages on the Rise as Competition for Candidates Continues to Increase

It is hard to believe we are soon to approach the half way mark for 2017, the year has flown by so far and activity here at Intersect Global seems to reflect the general buoyancy of the civil engineering & construction sector at the moment.

The Recruitment and Employment confederation have recently released the latest job out look report, this information is gathered by corporate members of the REC so should give an accurate and valuable insight into where the jobs market is at the moment here in the UK.

I thought it would be useful to a share a snap shot of the latest findings :

42 per cent of employers who have had difficulty recruiting candidates have increased the salary on offer, according to April’s JobsOutlook report.

In an attempt to attract candidates after failing with an initial advertisement, 80 per cent of employers re-advertised the role, while 24 per cent have resorted to lowering the requirements of the role.

The REC’s latest JobsOutlook survey of 600 employers also reveals:
• 22 per cent of employers plan to increase permanent headcount in the short term (the next three months) and medium term (the next four to twelve months).
• Construction, engineering/technical and health/social care are the three sectors where employers most expect a shortage of candidates for permanent roles.
• 19 per cent of employers plan to increase temporary agency headcount in the medium term, and 12 per cent plan to do so in the short term.

As ever Intersect Global have a range of interesting career opportunities available. Many of the roles we are working on are not advertised, if you are considering a career move or looking for your next contract assignment please give us a call on 020 76820668.

All the best.

Where are the Female Leaders in the Construction Industry?

If you have been following the Construction News coverage of women in construction this week I am sure you will agree the statistics presented highlight worrying questions about the state of gender diversity in the industry.
That women make up a fraction of the workforce is not new news. That women continue to fill a fraction of leadership roles with little sign of improvement should be a concern.
In 2014 CN reported that the percentage of women working in the industry was just 12 per cent and there were only 21 women on the boards of the top 20 UK contractors.
In Q4 last year, women formed 12.8 per cent of the workforce, but CN analysis reveals there are fewer women on the boards of the top 20 today than there were three years ago.

That’s not to say contractors are to blame – the situation isn’t much better among property developers, engineering consultants or architects. This is an industry-wide issue.

In 2015, the Construction News barometer found that half of leaders at the UK’s biggest contractors believed their companies employed sufficient numbers of women and those from ethnic minorities. This clearly was not the case, there are signs now that the conversation is changing, moving away from, ‘Do women want to work in construction,’ to questions like, ‘How do we offer flexible working, return-to-work schemes and why does gender diversity lead to better business?’

Just as the industry needs more men to campaign for gender diversity and ridicule outdated views, it needs visible female role models.
If more women can get into senior positions in construction, she says, perhaps there will be a snowball effect.
We also profiled women this week enjoying careers from crane operators to technical directors. The industry is not short of people willing to change and to shape the debate.
And while HS2’s commercial director Beth West rightly points out that “no woman wants to be on a board just because she’s a woman”, for this industry to change, women who are successful leaders can inspire others to consider a career in this industry.
International Women’s Day is an opportune time for us to devote widespread coverage to the issue of gender diversity in this industry.

Intersect Global are members of organisations such as WISE, Women in Science and Engineering and have been actively trying to play our part in the helping improve the diversity of women within our industry, there is a long road ahead to bring things to an equal footing but we really hope that one day this will be a reality.

In other news we are currently working on updating our website and hope to be able to share that with you in forthcoming weeks. In the mean time you can still browse live vacancies on our site. Not all our live vacancies are advertised, if you wish to have an initial chat with us about your next career move please give us a call on 020 76820668.

Jobs Market Outlook for 2017

Intersect Global have enjoyed a very busy start to 2017 with a number of significant permanent appointments being made and an equal measure of contractors placed too. The civil engineering and infrastructure markets are buoyant and the skill shortages make for a extremely tough market.
We thought it would be good to share the Recruitment & Employment Confederation’s latest poll results as to what is likely to be in store for this year.

Three quarters of UK employers (76 per cent) expect economic conditions to be more challenging in 2017 compared to 2016, according to a poll of employers by the Recruitment & Employment Confederation (REC).

There are signs that the jobs market is slowing. The REC’s latest JobsOutlook survey of 601 employers predicts a softening in short-term hiring. Employers intending to increase their permanent staff headcount within the next three months has reduced to one in five (21 per cent), down from 24 per cent reported last month. Similarly, demand for permanent staff has reduced in all sectors except health & social care and education.

Skills shortages remain a challenge for businesses. Half of all employers (50 per cent) anticipate a shortage of suitable candidates for some permanent roles this year. Employers anticipate that roles in engineering & technology, health & social care, and hospitality will be particularly affected by skills shortages.

Despite harsh economic conditions, businesses remain self-confident. Three quarters of employers polled (74 per cent) say that their business will perform better this year compared to last year.

REC Chief Executive Kevin Green says:

“Employers know that choppy waters lie ahead but are confident they can tough it out. The jobs market has performed better than expected since the referendum. Businesses have held their nerve and we need this resolve to continue as fresh challenges arise in 2017.

“Hirers are already finding it difficult to fill vacancies and this will intensify. The UK is at near-full employment and the available talent pool is shrinking. Economic volatility could make individuals more hesitant about moving jobs this year, which would add to the problem.

“With the government confirming that employers will have to contend with new immigration controls when we leave the EU, organisations in sectors which are reliant upon workers from Europe will have to adapt quickly to survive. It’s difficult to see how the NHS will cope when access to nurses from Europe is curtailed. Likewise, businesses in construction, agriculture, hospitality and manufacturing will need to face up to harsher conditions in 2017 and beyond.”

If you would like to discuss your next career move with Intersect Global, please get in touch.
Please note the jobs on our site are just some of the live requirements we are working on at the moment.

“Hard” Brexit could cause British Construction Industry to loose out on 215,000 Workers

The British construction industry could lose out on almost 215,000 workers if there is a ‘hard’ Brexit, according to research from Arcadis.

The report found that a ‘soft’ Brexit could see the industry lose out on 136,000 workers – around 78,000 fewer than in the hard Brexit scenario.

According to the research, which was conducted for Arcadis by the Centre for Economics and Business Research, British construction could lose a volume of workers equivalent to the entire population of Luton (214,700 according to ONS 2015 estimates) in the event of a hard Brexit.

This is based on a potential scenario whereby there would be an extension of the points-based system currently in place for non-EU migrants.

If those EU nationals leaving the industry could not be replaced at the same rate by new EU workers, the research estimated there would be almost 215,000 fewer people from the EU would enter the infrastructure and housebuilding sectors between now and 2020, based on an assumed combined workforce of 1.5m.

Arcadis said that, were policies implemented on a sector-by-sector basis and allowing for a degree of EU migration into the sector, it expected around 135,000 fewer European nationals would relocate to British construction – a number equivalent to the population of Ipswich.

Arcadis director of workforce planning James Bryce said: “What started as a skills gap could soon become a skills gulf.

“The British construction sector has been built on overseas labour for generations, and restrictions of any sort – be it hard or soft Brexit – will hit the industry.

“Missing out on over 200,000 people entering the workforce could mean rising costs for business, and much-needed homes and transport networks being delayed.

“In recent decades, there has been a massive push towards tertiary education which has seen a big drop in the number of British people with the specific skills we need.

“If we cannot import the right people, we will need to quickly ramp up training and change the way we build.”

Mr Bryce added methods like robotics and offsite manufacturing have “never been taken as seriously as they should, but could well prove the difference”.

The Arcadis methodology was based on Article 50 being triggered in Q1 2017.

The research estimated future changes in workforce numbers based on the Construction Products Association’s central scenario for output forecasts from September.

UK Growth at Risk due to Crisis of 50,000 Missing Female Minds

Intersect Global are a member of WISE a brilliant organisation who support and promote women in science and engineering.
Here are the findings from their national conference.

The UK’s key growth industries risk stalling unless the country tackles the loss of 50,000 talented girls a year from science, technology and engineering jobs.

British companies face a massive skills crisis in STEM (science, technology, engineering and maths) of 69,000 recruits a year, while 93 per cent of girls who have great potential face a lifetime of low pay and limited prospects because they do not pursue qualifications for these technology-based industries.

At the our national conference in London today, our chief executive, Helen Wollaston, is calling on the Government, media and schools to work together with WISE to bring an end to the crisis of these missing minds by showing STEM careers can transform the lives of young women and fuel the economy.

Watch the WISE conference live today on YouTube from 11.00am to 12.30pm and 1.45pm to 3.30pm

Helen Wollaston says: “There is a global war for talent – specifically STEM-related talent – and the rest of the world is stealing a march on the UK. These key skills will secure and fuel the UK’s most important industries today and tomorrow. We cannot afford to lose this war; especially when uncertainty around Brexit is further challenging the economic outlook for the UK.

“We are calling for action on three fronts – education, apprenticeships and industrial strategy. OFSTED should analyse the percentage of girls taking science, maths and computing after GCSE – and only give excellent ratings to schools and colleges achieving 24 per cent. This would match the percentage of boys.

“Companies should be allowed to use the new Apprenticeship Levy to market science, technology and engineering apprenticeships to women. And the much talked about UK industrial strategy should aim to have a third of digital jobs filled by women.

“We have to do something dramatic to achieve a shift change.”

She adds that parents have an important role to play too: “Technology careers attract premium salaries and these skills are in high demand – we typically hear of five job offers for every digital graduate. Why wouldn’t you want your daughter to work in this field? But too many parents still discourage young women because they see science, engineering , IT and technology as dirty or dull.

“We all need to work together to show the incredible opportunities for those who study maths, science and computing. The skills crisis is pushing our most productive industries towards breaking point and we all have a role to play in making sure everyone recognises the importance and value of STEM qualifications.

“Far too many students rack up thousands in debt every year chasing degrees that will lead to little in the way of career prospects. If we can turn the tide and get more young women choosing science, technology, engineering and maths, they, and the UK as a whole, will have a much brighter future.”

According to research by WISE girls outperform boys in GCSE science subjects, with near equality in numbers taking these exams. This plummets to just 33 per cent of females after GCSEs and by university, just seven per cent of women take degrees in technology and engineering. This amounts to tens of thousands of talented female students being lost every year.

Wollaston offers practical tips for parents to encourage their daughters: “Get immersed in what the digital based jobs of today and tomorrow look like so you can talk knowledgeably to your daughters. Buy them science and tech-based toys for Christmas – there is a fun dolls house that children can wire up designed by two female engineers at Stanford. Look up inspiring women on the internet and get their school to discuss these.

“Our award finalists this year are a great place to start for inspirational women – they have used science, technology and maths to help breast-feeding mothers, create inspirational businesses, improve safety on construction sites and tackle the danger of battery fires.”

Founded more than 30 years ago, WISE is bringing together industry, academics and government at the conference to discuss how more women can take advantage of careers in science, technology and engineering. The organisation has achieved a great deal in its history, but women still only represent one in five of the total STEM workforce.

WISE also works with employers to increase the number of women on boards and in management positions and helps bosses to make their workplaces more attractive to women.

To help inspire the next generation of female engineers, scientists and digital gurus, WISE has created a top ten of Christmas presents to help parents to encourage their daughter’s interest in STEM skills. The list includes toys to build a human body, create solar powered robots, run a chocolate factory and tell the time with a potato clock.

For press enquiries or to arrange interviews with Helen Wollaston, WISE board members or WISE awards finalists and winners, contact Ben Pindar, Northern Lights, on 01423 562400 or email ben@northernlightspr.com

Key facts on girls in STEM subjects

A total of 90,910 students (male and female) a year go on to study STEM subjects or take a STEM qualification post 16
Girls consistently outperform across most GCSE subjects, even more so in STEM than in other subjects (71% of girls achieve A*-C grades in STEM, compare to only 62% of boys)
In the year to August 2016, a total of 295,584 boys and a total of 288,084 girls took STEM subjects at GCSE. It is compulsory to take maths and at least one science subject course at GCSE
When it came to moving on to A-Levels, Advanced Apprenticeships or Level 3 Vocational Qualifications, there were 237,509 boys and 97,557 girls. 66% per cent of girls drop all STEM subjects at this stage .
When it came to moving on to higher education, Higher Apprenticeships and Level 4 Vocational Qualifications, there were 70,573 boys and just 20,337 girls – a shortfall of 50,236 girls
A total of 24% of boys move into higher STEM programmes but just 7% of girls follow the same path.
There is a shortfall of 69,000 qualified people each year to fill predicted vacancies in engineering companies. The largest proportion of job openings will be in construction, and ICT related fields, posing a massive threat to British industry.
The Engineering sector alone will need to recruit 2.56 million people by 2022, of which 257,000 will be new jobs

UK construction firms back into ‘expansion mode’ after housing boost, CIPS data shows

Good news; UK construction firms have moved back into “expansion mode” after the industry reported growth in activity for the first time since the EU referendum.
The Markit / CIPS Construction PMI data for September stood at 52.3, rising above the index’s 50.0 ‘no change’ mark and marking the biggest increase since March.
The figure was well above July’s seven-year low of 45.9 but still lower than the long-run survey average of 54.6.

Senior economist at IHS Markit Tim Moore said: “UK construction companies moved back into expansion mode during September, led by a swift recovery in residential building from the three-and-a half-year low in June.”
The residential building market recorded its biggest increase in output since January, with firms citing greater demand and improved market conditions for the upturn.
Civil engineering activity expanded at its fastest rate since March, new work rose for the first time since April and construction employment levels were also up.

The September figures also marked greater contractor confidence, with 45 per cent of those surveyed forecasting a rise in output before the year end, with only 9 per cent anticipating a reduction.
The commercial market continued to be hit by Brexit uncertainty, with activity decreasing for the fourth month in a row.
Firms also reported continued price inflation during September as exchange rates drove up materials prices close to the highest rate for two years.