Further Job Creation in Construction and Hotel Sectors

In the previous, post we looked at how business services is creating thousands of new UK jobs. Employment has also been rapidly rising in the hotel and construction sectors, a fact that has not gone unnoticed by Procorre. Forecasts for growth in 2016 have been slightly edged down by the Organisation for Economic Co-operation and Development (OECD), yet the outlook is still positive. The latest forecast, which predicts a GDP increase of 2.1% over the year, would still place the UK at the top of the 2016 G7 growth league. Retail sales in January were up by 5% year on year, and consumer purchasing power remains strong due to the very low level of inflation – despite relatively slow growth in wages. All in all, while employment growth may not continue to increase at the breakneck speed of 2015, expectations are that the year will still see growth.  



Growth in the Construction Industry

The construction industry in England alone contributed almost 100,000 jobs to the growth in the UK market in 2015, and demand for new housing and other building continues. In January of this year, the Construction Industry Training Board (CITB) called for more new apprentices as forecasts predicted a 2.5% annual average job growth rate for the coming five years. The Construction Skills Network report from CITB forecasts sustained industry growth until at least 2020, driven primarily by demand for private housing and infrastructure. This sustained growth is predicted to encompass all areas of the UK.  

Growth in the Hotel and Restaurant Industry

Back in March 2015, PricewaterhouseCoopers predicted impressive growth in the UK hotel and restaurant sector over the coming two years. By the end of 2015, almost 100,000 new jobs had been created within that sector. BigHospitality.com reports that more than half of hotels under development in the UK are budget hotels, responding to increased demand for cheaper accommodation. Serviced apartments are also expected to increase in popularity, especially with business travellers. In addition to these changes, more major hotel brand consolidations are expected on the back of the Marriott Starwood merger.