Recruiters worry that the government’s aim to put construction workers back on site through ambitious civil projects has not led to job creation.

Public sector building projects have run into trouble as private contractors have encountered problems raising capital and government departments underestimate funding demands.

Mark Calver, general manager of UK Construction Recruitment, told Recruiter the government’s lack of action has been frustrating: The projects
haven’t started because the government hasn’t released the cash. It’s about making political statements at the moment. They’re making promises, but are very slow to make changes. If there’s no work, then there’s no jobs.”

The use of Private Sector Initiatives (PSI), where commercial contractors fund and build public sector assets which are then leased back to the government, has opened them up to the sector’s funding problems.

John Arundell, managing director of construction recruiter J A Recruitment, told Recruiter it was affecting placement levels: “There have been a lot of jobs that have been put on hold and put back, and that has rippled through the sector.”

Questions have been raised over schemes to renovate and improve colleges. The Times has reported that dozens of sites have been left short of funding after government body the Learning Skills Council (LSC) could not raise the amount it pledged.

A spokesperson for LSC said: “It is clear that even at current record levels of funding not all schemes can be implemented on the timescales originally envisaged.”

Rob Barber, manager of construction and civil engineering at Advanced Resource Managers, told Recruiter: “The contractors are going along with tenders and then a lot of the projects are being put on hold, delayed or shelved. This means that elements of the recruitment process,
whether interviews or CVs, are wasted.”

However, the government has indicated it will loan money to the ailing contractors working on PSIs, hoping to prevent further delays in a move Yvette Cooper, the chief secretary to the treasury, says will “support jobs now”.

According to HM Treasury 110 projects which are estimated to be worth a total of £13bn will be eligible for the money, including improvements
to highways, schools and hospitals.

LSC’s chief executive, Mark Haysom, resigned over the problems with the college building programme on 23 March.