AROUND 2,500 jobs will be lost in the North East's construction industry this year. The region will be one of the worst hit regions in the UK, according to a new report from the CITB-Construction Skills industry body which forecasts 45,000 job losses nationwide this year.
And the output of the building industry in the North East is likely to fall by 6% from its current £3 billion – around twice the national average, although in line with the rest of northern England which has been badly affected by public-sector cuts including the slowing of the school building programme.
The report says that the industry may start to see some growth return in 2013 although this will still see the return of only half the money lost to the sector this year.
The level is again forecast to be slower than in the south of England.
Construction currently employs around 94,000 people in the North East. But despite short-term challenging conditions, the number of people employed in the industry in the North East will reach 102,470 by 2016.
Industrial schemes such as the building of an oil and gas sector hub on Teesside and a nuclear power station in Hartlepool will help to stall the slide in the region which has already cost thousands of jobs over the last five years.
Steve Housden, sector strategy manager for CITB-ConstructionSkills in the North East, said: “The loss of skilled workers in 2012 is a clear indication of the challenges that we are still facing in the North East construction industry.
“Times are tough, and the effects are being particularly heavily felt by tradespeople and labourers.
“While the forecast for 2016 gives reason for optimism, there is a real danger that the industry will not have the skills it needs to complete major projects in the longer term.
“With this in mind, it’s imperative that the industry continues to invest in skills and training.
“Although the CSN report paints a bleak image of the industry locally, there is still investment in significant projects across the region which will help stimulate growth.”
The industrial sector is projected to be the most buoyant in the North East, growing at an annual average rate of 6%.
The private housing and commercial sectors are also expected to see growth rates of 1.6% and 2.2% respectively thanks to a cash injection from projects such as the regeneration of Gateshead town centre.
Public housing and public non-housing in comparison are expected to see the biggest declines in output at 11%.
