What's Happening?
The construction sector in the U.S. has seen a decline in employment numbers during the second quarter of the year, according to the Office for National Statistics. The number of people employed in construction dropped to 2,081,000, marking the second-lowest level in nearly 25 years. This figure is slightly higher than last year's second quarter but represents a 2.8% decrease from the first quarter of this year. The decline comes amid the government's announcement of 10 new technical skills colleges aimed at training new construction workers, part of a £625m skills package. Industry leaders, such as Paul Ruddick of Reds10, emphasize the need for reform within the sector to bridge the skills gap and improve productivity.
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Why It's Important?
The decline in construction employment is significant as it impacts the overall economic health and development of the U.S. The construction industry is a major contributor to the economy, and fluctuations in employment can affect related sectors such as real estate and manufacturing. The introduction of new technical skills colleges is a positive step towards addressing the skills gap, but industry leaders argue that structural reforms are necessary for long-term improvement. The increase in female employment in construction, rising to 15.2%, indicates a shift towards greater gender diversity in the workforce.
What's Next?
The government's initiative to establish technical skills colleges is expected to provide a new generation of skilled workers, potentially reversing the employment decline. Industry leaders are likely to push for reforms that integrate more of the supply chain and design processes in-house to foster innovation and productivity. The construction sector may also see increased efforts to develop its workforce internally, as suggested by industry experts.
