Member Article

Latest migration figures imperil capital's construction industry, says London Chamber

The newly released Office of National Statistics (ONS) figures on migration pose an acute risk to the capital’s construction industry according to London’s biggest business support organisation.

According to the ONS figures released this morning, emigration from the UK by EU citizens rose by 31,000 to 117,000 with a particular surge amongst those heading back to Eastern European nations, including Poland, the Czech Republic and Hungary, in the year of the Brexit vote.

The figures are part of what the ONS described as a ‘statistically significant’ drop in net migration from 332,000 in 2015 to 248,000 in 2016.

While the potential economic impact of such a sustained decrease in migration is clear, not to mention the knock-on effect for the UK’s workforce as a whole, the London Chamber (LCCI) believes that the capital’s construction industry in particular could be seriously impacted by a continued flight of EU talent.

According to the LCCI, 36% of London’s construction industry is made up of foreign workers and it said that today’s figures combined with any planned capped on foreign workers could ‘spell disaster’ for the sector.

Director of Policy at London Chamber of Commerce and Industry Sean McKee said: “We continue to maintain that what is vital to London’s success is attracting and retaining talent and a full strength workforce, rather than imposing an arbitrary cap.

“We already know that certain sectors are struggling from a skills shortage and these figures, which show a surge in EU citizens leaving the UK last year, can only add to that shortage.

“This leads to serious questions about how we can build the houses we so desperately need as well as a supporting infrastructure to remain a competitive global city.”