1 in 5 jobs to go over next two years

Research compiled for the Local Government Association by Public and Corporate Economic Consultants, and reported in Building magazine, predicts that 385,300 of the 1.9 million employed in the English construction industry could lose their jobs by the end of 2010.

The worst affected area will be London, with 23% of the 215,800 construction workers there expected to be made redundant, followed by the North-west with 21% losing jobs.

The news came as industry leaders held crisis talks with business secretary Peter Mandelson to determine how construction work could help bolster the wider economy. In his pre-budget report due on Monday, Chancellor Alistair Darling is expected to announce an accelerated public spending package intended to bring forward billions of pounds-worth of investment previously earmarked for the 2010/2011 fiscal year.

But fears that public projects might not be immune to funding problems were highlighted again last week when it emerged that £2.8bn of vital improvement work on the London Underground has been put on hold.

Despite winning places on the Vendor Capital Programme in August, the twelve contractors on the framework have received no work. One told Contract Journal: ‘My understanding is there is no work coming through on VCP because there is no money to spend. It has been put into a holding pattern while London Underground tries to get more money from the Government.’

The building supplies sector took another hit this week as Wolseley said it would cut 2,000 jobs and close over 200 branches in the UK and Ireland, reports Construction News. The Reading-based firm, which trades under the names Plumb Center and Build Center, joins beleaguered Travis Perkins. Earlier this year, the builder’s merchant announced it would cut 1,300 jobs before January 2009.

On a happier note, Barratt Developments’ chief executive Mark Clare has ruled out further large scale job cuts after an increase in sales volumes.

The house builder has seen average sales grow 18% in the last 10 weeks on the previous 10 weeks, which should prevent a repeat of the measures implemented in July that saw 1,200 jobs shed.