Staffing costs ‘skyrocket’ for construction industry

UK construction firms have seen staffing costs rise by at least 30%, according to a new report.

Unprecedented labour shortages, including difficultly filling vacant roles and finding cover for absent employees, is causing staffing costs to soar.

The research from employment firm Citation, shows the increase has also been compounded by the fact 60% of businesses in the sector are experiencing rising costs for materials and other overheads.

Gill McAteer, head of employment law at Citation, said: “Covering absence and recruiting talent can be a costly process for employers, and what the construction industry is currently facing is unprecedented.

“The current skills shortage is meaning that added pressure is put on current employees, and with many of those having to take time off due to illness and isolation, businesses are paying the price.

“With self-isolation rules having recently changed for the double vaccinated, employers should start to see a drop in the number of workers being required to isolate.

“Although this should help to balance the rise in staffing costs, many employers are confused about the rules.”

The survey also reported that six in ten (60%) business leaders felt let down, or that more advice for businesses could have been provided by the government on how to create a Covid safe workplace.