The effect of the recession on the labour market within the construction industry

Abstract

The topic of this report is the effect of the recession on the labour market within construction. This study will look at what effect the recession has had and how the industry has recovered since the recession ended in 2014. The reason for this report is to establish what effect the recession had on construction professionals with the industry. Whilst previous studies by the Office of National Statistics and Construction Industry Council and the government had highlighted what effect the recession had on the construction industry as a whole it had not been established what the effects were deeper within the construction industry. The aim was to establish if the recession had an effect on numbers within construction industry professionals and if the recession had affected these numbers after the recession ended.
The research into the effects of the recession on construction industry professionals was carried out using the quantitative method of research with the use of questionnaires. These questionnaires were sent out to 556 construction professionals with 154 responses being received back. These were then analysed using the descriptive analysis method which Naoum (2013), states is ideal for questionnaire analysis.
The study has found that construction professionals were not as affected by the recession as the rest of the construction industry. Previous research highlighted in the literature review stated that 54% of construction firms had to make job losses but this would seem to contradict the finding from this report that where only 37.5% of people surveyed were affected. Wage cuts were not as severe amongst construction professionals as they were across the whole of the construction industry. The research also found that the industry is now showing signs of improvement with wages increasing and a higher percentage of people now in
construction professional positions. The research also highlighted that there has been an increase in full time contracted employment and a decrease in people who are self employed which was on the increase during the recession. The conclusion of all of these findings is that construction industry professionals seem to have not been affected by the recession as others within the industry. The findings also highlight that the construction industry is showing growth and stability with the improvement of wages and more people in ‘stable’ full time employment.