The government’s decision to cut public spending by £83 billion will result in more than 100,000 construction redundancies in the next four years, according to a report out today.
An output loss of around 5 per cent will prompt the losses, while in the wider private sector nearly 500,000 jobs are likely to be cut as the government continues to scrap capital projects.
The report by the accountancy firm PricewaterhouseCoopers reveals the construction and business services sectors will be hardest hit by the cuts while outsourcing is expected grow considerably.
PwC chief economist John Hanksworth, said: “The construction sector could see even larger relative cuts with an output loss of around 5 per cent leading to around 100,000 job cuts. This reflects the greater exposure of this sector to cuts in public sector capital investment, which are particularly severe.”