The construction industry is one of the largest employment sectors within the UK, with up to 25,000 apprentices joining each year.
With the imminent NMW 6.7% rise in April 2025, the largest increase the UK economy has seen, we must ask, what implications does this have for employees and employers alike, as well as the wider economy? Notwithstanding the fact employers also dealing with the increase in NI contributions to 15%.
Undoubtedly more will be encouraged into the industry, while those already working should see an improvement no matter how slight, in their take home pay and therefore quality of life. On the flip side though, could it be harder to attract higher skilled workers without raising their wage even more. Not forgetting the fact that additional labour costs are always going to have a knock-on effect on the overall project costs.
Investment in training and development will help workers move more easily up the career ladder, meeting the demand for skilled reliable workers- invaluable to recruiters! As higher wages inevitably lead to higher costs, the need to streamline operations and improve efficiency becomes paramount. For smaller organisations there is the option of government subsidies to help absorb increasing wage costs.
Maybe alongside this, recruiters need to be considering strategies that go beyond pay. Looking toward work culture and the ideal work life balance we all aim for! Flexible contracts to help with costs and staffing, job shares and hybrid working.
The introduction of the new NMW is going to impact not only wages, but recruitment and retention as well as the overall economy. There are optimistic whispers at the start of 2025 for the Construction Industry, only inspiring us to be even more committed to providing the best service to both clients and candidates. We strive to match the right candidate to the right vacancy, frequently checking in on all our candidates.
At Temple, we pride ourselves on the personal touch. Give us a call on 01604 945910 to talk with one of our recruiters!