Building the skills to deliver HS2 - Phase One and Phase 2a
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Building the skills to deliver HS2 Phase One and Phase 2a
Contents
CEO’s Foreword 2 2. What skills and education 20 4. What are HS2’s 38
Introduction 3 interventions are already in place? future interventions?
How is Job Brokerage at the heart 22 Expanding Job Brokerage 39
Why is Skills, Employment and Education 4
of these interventions? Supply chain forecasting data 39
important to HS2?
How are we already addressing the need for 24 Future labour and skills forecasts 40
Why have we updated the forecasts now? 5
specific skills?
What is the overall labour demand 6 Targeted interventions on skills 41
How is HS2 addressing skills challenges and 27 shortage areas
for HS2?
creating opportunities across the UK?
Funding opportunities 41
1. What are the challenges and 7 How are we supporting specific groups? 30
Rail System Alliance 42
opportunities for Phase One and
3. How has HS2 responded 35 Inspire to Hire 42
Phase 2a?
to Covid-19? SEE approach for Phase 2b 43
What are the total labour demand 8
requirements for construction and
rail engineering? Looking forward 44
What is the regional picture? 9
What are the future supply forecasts for 10
construction and rail engineering?
What are the key roles where there 15
is a skills mismatch?
What are the impacts for the 18
West Midlands?
What are the impacts for London 19
and the South East?
HS2 | Building the skills to deliver HS2 1CEO’s Foreword
HS2 has always been more than a railway. As this report demonstrates, HS2 will deliver jobs HS2 will be a catalyst for upskilling Britain. We are
At its heart it is an economic project; playing an when we need them most. There is a constant labour drawing people into the workforce that may never
integral part to increase economic growth in demand of up to 26,500 people, from now until 2026, have considered a career in construction or transport
the Midlands and the North and help level-up to build the project. At peak HS2 will support over before; people from BAME backgrounds, women,
the country. HS2 remains at the forefront of 34,000 jobs and over 2,000 new apprentices will start disabled people and those who are unemployed.
the Government’s plans to ‘build back better’, or reset their careers on HS2. 650 are already working We are encouraging science, technology, engineering
creating the low-carbon infrastructure of a with us, learning new skills and setting themselves up and maths subjects at school. We are seeking to inspire
national transport system that will support jobs for success. a new generation with new possibilities.
up and down the country. HS2 will underpin It is not just engineering and construction skills that For our workforce, HS2 will provide livelihoods, new
the construction industry for years to come, HS2 will support. We will be supporting the careers skills, and new career paths. For the UK, HS2 will play
improving standards, driving innovation, and of IT programmers and software developers, project its part in an economic transformation of the country.
bringing thousands of new skilled people into managers and credit controllers, health and safety
the workforce. officers and conservation professionals. To look
after our sites we need security guards, caretakers
The UK economy faces some serious challenges.
and transport managers. We need planning experts,
Not just adjusting to the impact of the pandemic,
architects, surveyors and telecoms engineers. HS2 will Mark Thurston
but also to the impact of Brexit on our economy and
start and sustain careers for thousands of people Chief Executive Officer, HS2 Ltd
Britain’s new path in the international markets. In this
across the lifetime of construction.
context, the importance of building HS2 has never
been more critical. This is the right project at the As a nation, we face a shortage of expertise; nearly
right time. half of the construction workforce are over 45 years
old. This ageing workforce means we must attract
thousands of new people to the industry every year
in order to fill the skills shortage and to support the
country to deliver world-class infrastructure – not
just new railways, but new roads, houses, low-carbon
energy and communications.
HS2 | Building the skills to deliver HS2 2Introduction
HS2, Great Britain’s new high-speed railway, Construction of Phase One of HS2 from London to However, the UK infrastructure labour market has clear
is now being built. It will form the low-carbon Birmingham is underway. Phase 2a which extends skills shortages in some specialist areas. To deliver HS2
spine of our transport network and serve 25 the line from the West Midlands to Crewe has been and other large infrastructure projects, we need to use
towns and cities from Scotland to the South East. approved by Parliament and the first contracts this opportunity to help upskill Britain and have a more
The new high-speed track will be built between for early works have been awarded. As part of its diverse range of people working in the sector.
Birmingham, Manchester, Leeds and London; Integrated Rail Plan, the Government is considering
This report focuses on the forecasts of jobs and skills
HS2 trains will also run on the existing network how best to integrate Phase 2b, which extends the
needed to deliver HS2 Phase One and 2a – between
serving towns and cities in the North West, North line to Manchester in the West and Leeds via the East
London and Crewe. The scope of Phase 2b will be
East and Scotland. Midlands in the East, into plans for other rail projects
set out in the Integrated Rail Plan (IRP), not available
such as Northern Powerhouse Rail. HS2 Ltd has been
HS2 is the most important economic regeneration at the time this workforce analysis was undertaken;
instructed to prepare legislation for the western leg.
project in decades. It will act as a catalyst for growth however initial analysis of the requirement for Phase
The new line between London and Crewe is expected
and help level-up the country, boosting growth in 2b Western Leg has been included as the legislation is
to open between 2029 and 2033, and the line from the
the Midlands and the North and opening up new being prepared. HS2’s total jobs and skills requirement
West Midlands, Manchester and Leeds between 2035
employment and leisure opportunity for millions could expand depending on the outcome of the IRP.
and 2040.
of people. It will be the low-carbon alternative for The regional analysis for constructing HS2 between
long-distance travel, reducing the need for car and The construction of HS2 will last the best part of
London and Crewe set out in this report is based
plane journeys, and play a vital role in delivering the two decades and help underpin the health of the
on where the work requirement is ‘generated’ not
Government’s ambitious goal of Britain becoming construction and engineering industry. This is
‘delivered’. As the work sites are mainly along the
net-zero carbon by 2050. It will add vital capacity to particularly important as the British economy recovers
route, the main points of work generation are in the
the existing rail network by taking long distance trains from the pandemic. HS2 is an important part in the
West Midlands, London and the South East. However,
off it, creating thousands of extra seats and space for Government’s strategy to ‘build back better’. It will
the workforce of HS2 and the supply chain that
more local, commuter and freight services. leave a lasting legacy of new skills, new innovative
supports it, is being drawn for all over the country.
processes and products, and new avenues for
HS2 is also playing a pivotal role in the Government’s For example, a business that builds pre-fabricated
export that will support the development of UK and
Plan for Jobs, creating and supporting thousands of cabins in its factory in Cheshire, but delivers them to
international infrastructure in the future. Over the
jobs and benefiting small and medium enterprises a work site in the West Midlands would be included in
course of construction, tens of thousands of different
(SMEs) up and down the country. In order to build the West Midlands figures, even though the work and
people will work on HS2 at some point – whether it is
Phase One of the railway, HS2 Ltd and its Tier One the jobs required to support that activity were based
with HS2 Ltd itself, with our main contractors or within
contractors expect to recruit for over 20,000 roles in elsewhere. HS2 is a national project and will support
their supply chain.
the coming years, such jobs offer people a route back employment across the country.
into work after the pandemic.
HS2 | Building the skills to deliver HS2 3Why is Skills, Employment and Education important to HS2?
Skills, Employment and Education (SEE) is HS2 Strategic Goals
one of our seven strategic objectives and it
is fundamental to the success of HS2 and
our legacy.
The Government has recognised the contribution Catalyst Capacity and Skills and Customer Value Health, safety Sustainable
we are making to the Covid-19 economic recovery for growth connectivity employment experience for money and security and a good
and their Plan for Jobs. The construction of Phase standards neighbour
20,000
One is already creating thousands of new jobs – over
+
20,000 will be supported by work on the London-West
Midlands route in the next few years – and we have jobs will be
passed the milestone of creating 650 apprenticeships. supported by
We are not stopping here, however, and plan to create work on the
at least 2,000 apprenticeships over the lifetime of London-West
the programme. Midlands route
To make sure we maximise the opportunities offered in the next
by HS2, we need to address Britain’s skills shortages few years
and equip a new, more diverse, generation of workers
with the knowledge they will need to thrive in the
infrastructure sector.
We have passed the with plans to create at least
650 2,000
milestone of creating 2,000 apprenticeships over
650 apprenticeships... the lifetime of the programme.
HS2 | Building the skills to deliver HS2 4Why have we updated the forecasts now?
In 2018, HS2 Ltd published its SEE Strategy, We have now updated and refined these forecasts
that was underpinned by work to forecast the to reflect the new costs and maturity of the HS2
labour and skills needed to deliver the HS2 programme, and changes to labour demand from the
construction and rail engineering programmes. HS2 Programme and the economy-wide construction
As well as providing robust evidence to inform sector. The forecast of the labour and skills demand
the SEE Strategy, the analysis also provided and supply has also been revised to reflect the key
an assessment of where the HS2 Programme factors which may affect the availability of labour and
and the wider construction and infrastructure skills for the HS2 Programme. These include the impact
sectors could face challenges in recruiting and of other major infrastructure projects, a new workforce
migration regime introduced following the UK’s exit
retaining skills.
from the European Union, and the impact of the
It is vital that HS2 Ltd works from an evidence base Covid-19 pandemic.
that provides the best available insight on programme
labour and skills requirements in terms of volume, It should be remembered, however, that these
occupation, qualification, timing, geographic area forecasts reflect a snapshot in time, and represent a
and duration to ensure the SEE strategic approach preliminary cost-based top-down analysis of labour
continues to focus on areas which are likely to yield demand. We will continue to validate the findings
the greatest benefit. against the bottom-up information provided by our
supply chain and will reforecast at intervals throughout
the programme as more information becomes
available or circumstances change.
HS2 | Building the skills to deliver HS2 5What is the overall labour demand for HS2?
The analysis of the labour demand arising from HS2 Other key findings from the analysis are: Table 1: Total labour demand by phase
is based on the estimated spend profile for the design – Phases One, 2a and 2bWL
310,000
and construction of HS2. These forecasts have been Total Peak Timing
person years3 will be
created for the elements of the route where we have Phase person-years workforce of peak
required to build HS2
greatest certainty – namely: Phase One 168,000 25,300 2022/23
Phase One, 2a and the
• Phase One – the 140 miles from Birmingham western leg of Phase 2b Phase 2a 30,900 6,500 2027/28
to London); Phase 2bWL 107,900 17,500 2029/30
75% 30,000
• Phase 2a – the extension from Fradley in the
Total 4
306,800 34,300 2027/28
West Midlands to Crewe in Cheshire; and
• Phase 2b Western Leg – from Crewe Given the relative maturity of the different phases of
to Manchester1. of the workforce is within Sustained high demand the programme, the interventions already in place
the construction sector, of around 30,000 people and the relative urgency of addressing the skills
As can be seen in Figure 12, demand rises from the
the remainder is working until 2029 mismatches, the rest of this document will focus on
level of around 25,000 in 2021/22 to peak at around
in rail engineering Phase One and Phase 2a.
34,300 in 2027/28. This total demand is driven by
concurrent peaks for the Phase 2b WL (16,500 people) In the future, once we have greater clarity on the route
and Phase 2a (6,500 people). and timelines, a similar exercise will be undertaken for
Phase 2b.
Figure 1: Total labour demand by phase – Phases One, 2a and 2bWL
35,000
30,000
Number of People
25,000
20,000
1 Since the costs and schedules for Phase 2bEL are under review, we cannot
15,000 accurately profile the labour demand for this phase.
2 The forecasts include an allowance for risk and contingency less efficiencies and
10,000 forecasts have been prepared separately for construction and rail engineering.
The forecasts do not include HS2 Ltd staff or the labour and skills that will be
5,000 required to operate HS2 services. More detail on the methodology behind the
forecasts can be found in the main report.
0
3 Total workforce is measured in person-years. A person-year is the equivalent
of one person working for 12 months. All person-years are measured from
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be used as a measure of the total labour demand required to deliver HS2.
Phase One Phase 2a Phase 2bWL Total 4 The total peak workforce does not equal the sum of the rows because
of differences in the timing of the peaks.
HS2 | Building the skills to deliver HS2 6Section 1 What are the challenges and opportunities for Phase One and Phase 2a? The forecasting work gives an opportunity to examine the scale of the challenges and opportunities that the HS2 Programme poses in terms of jobs and skills. In this section, we will examine: • What are the total labour demand requirements for construction and railway engineering in Phase One and Phase 2a? • What are the future supply forecasts for construction and for rail engineering? • What are the key skills mismatches? • What does this mean on a regional level for the West Midlands, London and the South East? The later sections of this document provide examples of the interventions already in place and what further interventions will be needed. HS2 | Building the skills to deliver HS2 7
What are the total labour demand requirements for construction and rail engineering?
Figure 2 shows a breakdown of total labour demand Figure 2: Total labour demand – Phase One and Phase 2a
across Phase One and Phase 2a, split between
construction and rail engineering skills. 30,000
25,000
The total workforce peaks at around 26,500 people
Number of People
in 2022/23 and overall, there is a constant labour 20,000
demand of 23,600–26,500 people from now until
15,000
2025/26. There is then a steady decline in labour
demand towards the end of the decade, which then 10,000
remains under 1,000 throughout the 2030s. The peak 5,000
construction labour demand of 26,500 occurs in
0
2022/23. Rail engineering labour demand steadily
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increases from its current level of about 1,000 to
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just under 9,000 people in 2028/29 before tailing off
Phase One Phase 2a Total
sharply. Different mixes of occupation and qualification
levels will be required at different times and more
detail on these can be found in the main report.
23,600-26,500
There is a constant labour
demand of 23,600–26,500
people from now until
2025/26.
HS2 | Building the skills to deliver HS2 8What is the regional picture?
Figure 3 below shows the regional breakdown of No assumptions have been made in respect to this for
workforce for both construction and rail engineering. this analysis. There is a constant labour demand
generated for the West Midlands of
Whilst HS2’s workforce will be drawn from all over • There is a constant labour demand generated
around 10,000 people between now
the country, including SMEs located in regions away for the West Midlands of around 10,000 people
and 2027/28
between now and 2027/28.
10,000
from main work sites, for the purposes of the regional
analysis below, it refers to the region in which the • The labour demand generated for London and the
labour demand is generated. It may not necessarily be South East is at or around the peaks from 2021/22
the case that this work is delivered by workers based to 2024/25, before declining towards the end of
in the same region. Some occupations (especially this decade.
those in professions such as design and management • The labour demand generated for London peaks at The peak labour The peak labour
roles) do not need to be based on-site and can deliver around 9,000 people and the South East at around demand for London demand for South East
work remotely. There may also be opportunities to 6,500 people. is around is around
9,000 6,500
deliver some work through off-site manufacturing. • There is a small labour demand generated for the
North West, for Phase One and Phase 2a.
Figure 3: Total labour demand by region – Phase One and Phase 2a4
30,000
25,000
Number of People
20,000
15,000
10,000
5,000
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4 The regional analysis refers to the region in which the labour demand is
London Non-region specific South East West Midlands North West Total Phase One and Phase 2a generated. It may not necessarily be the case that this work is delivered by
workers based in the same region. Some occupations (especially those in
professions such as design and management roles) do not need to be based
on-site and can deliver work remotely. There may also be opportunities to deliver
some work through off-site manufacturing. No assumptions have been made in
respect to this for this analysis.
HS2 | Building the skills to deliver HS2 9What are the future supply forecasts for construction and rail engineering?
In this section we will look at the supply
forecasts for construction and for rail What alternative scenarios for construction These scenarios were simulated by shocking the
engineering separately. were considered? macroeconomic indicators that are judged to be
most relevant in determining construction demand.
The macroeconomic forecasts for the UK –
Similar analyses have been carried out for both the These are GDP, consumer spending, business
and hence for construction sector output and
construction and rail engineering sectors. However, investment, employment growth and interest rates.
employment – are subject to a high degree of
there are some differences between the sectors.
uncertainty. This risk is particularly elevated at The scenarios consider how differing periods of
Rail engineering is much smaller than construction
the present time due to Covid-19 and Brexit. Covid-19 restrictions or lower EU migration due to
and, as such, the same level of detail of the underlying
To understand how varying economic backdrops Brexit would indirectly impact the UK construction
data is unavailable. Furthermore, the future forecasts
might impact output and labour demand in the sector, by considering the scenario’s impact
of construction sector labour demand are based
UK construction sector, three alternative scenarios on demand conditions in the wider economy.
on future projections of UK-wide macroeconomic
were considered: More details can be found in section 4.3 of the
indicators whereas the rail engineering sector is based
on projections of future investments. main report.
• mild scenario: a faster-than-expected
growth scenario;
• severe scenario: a more prolonged period of
economic weakness (seen in a number of key
indicators such as GDP, unemployment rates,
etc.) due to Covid-19; and
• low migration scenario: tighter points-
based restrictions.
HS2 | Building the skills to deliver HS2 10What are the future supply forecasts for construction and rail engineering? continued
Construction sector analysis
£175 billion
The construction of HS2 will take place alongside The construction of HS2 will take
UK construction activity that is anticipated to total place alongside UK construction
more than £175 billion per year for the next two activity that is anticipated to total
decades. To understand the impact on labour and more than £175 billion per year
skills, forecasts were prepared of future scenarios of for the next two decades.
construction employment and the employment issues
in the wider construction industry were analysed.
2.6 million
• Total construction employment in the UK is
Total construction
estimated at 2.6 million in 2020, a 5.6% fall
employment in the UK is
from 2019.
estimated at 2.6 million in
• In a baseline scenario, growth is expected to 2020, a 5.6% fall from 2019.
average 1.2% per annum taking total construction
employment to 3.3 million by the end of 2040.
• Under a mild scenario (a more optimistic case
relative to the baseline scenario), construction In a baseline scenario, In a mild scenario, In a severe scenario,
employment growth will average 1.4% per annum growth is expected growth is expected growth is expected
to average to average to average
1.2% 1.4% 1.2%
throughout the forecast horizon, with employment
in the sector reaching 3.4 million by 2040.
• Under a severe scenario (a more pessimistic case
relative to the baseline scenario), employment
growth in the sector is forecast to be similar to the
baseline at 1.2% per annum, with employment in
taking total construction taking total construction taking total construction
the sector touching 3.2 million by 2040.
employment to employment to employment to
3.3 million 3.4 million 3.2 million
by 2040. by 2040. by 2040.
HS2 | Building the skills to deliver HS2 11What are the future supply forecasts for construction and rail engineering? continued
Construction sector analysis continued • Apprenticeship starts in construction have been
declining since 2017/18 and the impact of Covid-19 Are there any skills not covered by the analysis?
The latest forecasts identified similar challenges and
could compound this decline, which in turn could Due to the top down nature of the forecasts, there
opportunities to the previous 2018 report. However,
constrain the availability of trained apprentices for are a number of niche skills that the cost-based
they also show that the UK’s exit from the European
HS2. Between 2017/18 and 2019/20, the number model is not able to address. The forecast data
Union and the economic impact of Covid-19 are likely
of Level 2 construction apprenticeship starters,
to lead to recruitment challenges and potential skills has been shared with key Tier 1 contractors in
which includes a range of construction trades,
issues for HS2 and the construction industry, as well as the supply chain for them to validate the finding
e.g. civil engineering operatives, fell by 28% across
some longer-term challenges arising from workforce and share details of niche skills and roles that
the regions on the HS2 route.
demographics and educational trends: have a smaller labour demand, but are vital to
• HS2 could face less of a challenge in recruiting the delivery of the programme on time and cost.
• It is possible that new UK immigration laws may higher education graduates, especially as the Areas identified so far include:
constrain net migration which could well impact number of UK-domiciled achievements from civil
HS2, given that half of London’s construction engineering courses has been on the rise since • Tunnelling
workforce is born outside the UK. As a result, 2017/18. • Land referencing
recruitment could become more difficult in London • Nearly half of construction’s workforce is aged • Consents
and the South East regions in the construction of 45 and above compared to just under 10% • Planners
Phase One and 2a. Between 2016 and 2018, there that is aged 16-24. An ageing workforce could
was a 28% decline in the number of construction impact the availability of labour supply and skills.
workers of non-UK origin entering the UK, which Combined with a reduction in apprenticeship starts,
could further impact labour supply. HS2 may face significant skills challenges.
28% 28%
The number of UK- Nearly half of construction’s
workforce is aged
domiciled achievements
45 +
from civil engineering
decline in the number of decline in the number courses has been on the
construction workers of of Level 2 construction rise since 2017/18
non-UK origin entering the apprenticeship starters compared to just
UK between 2016 and 2018 Between 2017/18 under 10% that is aged
16-24
and 2019/20
HS2 | Building the skills to deliver HS2 12What are the future supply forecasts for construction and rail engineering? continued
250,000
Rail engineering sector analysis
The rail engineering sector has a workforce of around The rail engineering
250,000 people in the UK. sector has a workforce
• The workforce is spread across a number of asset of around 250,000
types including those which are of most relevance people in the UK
to HS2
• track (38,300 people);
• electrification and plant (4,200 people);
• signalling, systems & telecommunications
38,300 4,200
(14,100 people); and
• traction and rolling stock (15,800 people).
• Approximately 23% of the total sector workforce
are employed on capital projects (around 55,000 people required for track people required for
people). Around half of the workforce are based in
electrification and plant
London and the South East.
14,100 15,800
• The median age of the rail investment projects
workforce is 41. For maintenance and operations
activities it is 45, and for the rail sector as a whole,
the median age is 44. This has increased over time
and continues to do so. people required for signalling, people required for traction
systems & telecommunications and rolling stock
23% 50% 41
Approximately Around half of The median
23% of the total the workforce age of the rail
sector workforce are based in investment projects
are employed on London and workforce is 41
capital projects the South East
HS2 | Building the skills to deliver HS2 13What are the future supply forecasts for construction and rail engineering? continued
Rail engineering sector analysis continued Construction mismatches
Forecasts of future rail engineering activity were The forecasts also generated a mismatch analysis that
modelled to 2040. The analysis showed the following: considers the requirements of the HS2 Programme as
well as the wider availability of skills in the construction
• The forecast of rail engineering investment over
industry as illustrated in the diagram of inflows and
the next 20 years fluctuates but exhibits a distinct
outflows below.
decline from 2030 onwards, possibly due to
uncertainties in funding for capital investments.
• Traction and rolling stock assembly and deployment Inflows from... Outflows to...
also has a fluctuating demand profile over the
next 20 years. HS2 itself exerts a major demand
on this workforce. If HS2 was removed, the profile Employment in other UK sectors Employment in other UK sectors
UK labour
force
would remain relatively flat from 2025 onwards,
decreasing slightly over time to reflect the Unemployment UK Unemployment
construction
decreasing demand across the industry.
workforce
Migrant workers entering the Workers leaving the UK
construction sector (inc. potential impact of Brexit)
Continued
Retirement Retirement
training and
upskilling
Looking after family or home Looking after family or home
Geographic
Economic inactivity
Unpaid work for self or relative mobility of Unpaid work for self or relative
construction
workforce
Temporarily sick or disabled Temporarily sick or disabled
Discouraged workers Discouraged workers
Young people entering the sector Retraining
after leaving education
HS2 | Building the skills to deliver HS2 14What are the key roles where there is a skills mismatch?
Construction mismatches continued
The three scenarios model the impacts of changes
The mismatch analysis enables the compilation of a
to the macroeconomic landscape on demand.
ranked order of the severity of recruitment challenges
They do not consider the impact on labour supply.
for those occupations that may present potential
In comparison to the baseline:
mismatches. The identified occupations are expected
to pose recruitment challenges, but to different The mild scenario results in stronger construction
extents. This analysis is based on those occupations: output, boosting labour demand and increasing
the size of any labour mismatches.
• with largest mismatch between total sector supply
and demand; The severe scenario results in weaker
• where HS2 demand is a large % of total construction output, resulting in a reduction in
demand; and demand for construction workers, and reduced
• where demand is a large % of total HS2 demand. recruitment pressure.
The low migration acts in the same direction as
the severe scenario, but with a smaller magnitude.
This generally presents itself as a small decrease
in labour demand and thus mismatches.
HS2 | Building the skills to deliver HS2 15What are the key roles where there is a skills mismatch? continued
Construction mismatches continued
Ranking Occupation Analysis Ranking Occupation Analysis
1 Labourers not Labourers could present the most severe recruitment 5 Plant operatives Relevant training achievements could completely satisfy
elsewhere classified challenge for Phase One and Phase 2a as this occupation this recruitment requirement, so this occupation is of
(nec) has the highest gross recruitment rate of all occupations. less concern than the above occupations. Only 28% of all
81% of all labourers work in construction so there is little plant operatives work in construction, so there is good
scope to recruit from other industries. scope to recruit for this occupation from non-construction
industries. However, the adequacy of existing training
There are opportunities for upskilling as, while there
depends on the type of machinery to be operated, and not
are no specific training courses directly linked to
every further education achievement in this area will qualify
this occupation, there could be unidentified workers
the holder to operate every type of machinery required
with relevant skills in other industries and with
for HS2.
other qualifications that could satisfy some of this
recruitment requirement. 6 Civil engineering As with plant operatives, relevant training achievements
operatives could completely satisfy the recruitment requirement
2 Scaffolders There are recruitment challenges for this occupation in
not elsewhere for civil engineering operatives. Forecast inflows could
Phase One and Phase 2a. However further education
classified (nec) satisfy up to 67% of this recruitment requirement and
and apprenticeship training achievements in the Phase
there is scope to recruit for this occupation from other
One and Phase 2a regions could satisfy up to 76% of the
industries, with only 43% of civil engineering operatives
demand. There is almost no scope to recruit scaffolders
working in construction. However, a more detailed analysis
from other industries as 92% of this occupation work
of the specific skills required within the civil engineering
in construction.
operative role in Phase One and Phase 2a would be
3 Construction Further education and apprenticeship training required to confirm whether the pipeline of training and
Trades Supervisors achievements in the Phase One and Phase 2a regions apprenticeships will satisfy HS2’s requirements, since
could satisfy up to 90% of this occupation’s recruitment training for this role covers qualifications in a range
requirement. There is scope to recruit construction trades of subjects.
supervisors from other industries, as only 48% of this
7 Civil engineers UK higher education training achievements in relevant
occupation work in construction.
courses could completely satisfy the recruitment
4 Steel erectors / There is scope to recruit for this occupation from other requirement for civil engineers in Phase One and Phase
Structural industries, as only 18% of steel erectors/structural 2a. 71% of civil engineers work in construction and
fabrication fabrication work in construction. Both training there is some scope to recruit for this occupation from
achievements and forecast inflows could each satisfy 50% other industries.
of this recruitment requirement. Steel erectors/structural
fabrication presents some recruitment challenges, but not
to the extent of the above ranked occupations.
HS2 | Building the skills to deliver HS2 16What are the key roles where there is a skills mismatch? continued
Rail engineering mismatches Typically, technician roles would be recruited from
The mismatch analysis for rail was carried out using an apprenticeship scheme or a vocational education
the same metrics as the construction gap analysis but scheme, whereas engineers and project managers
considered the occupations within each of the three would come from a university background requiring The analysis suggests that there is
key asset types: science, technology, engineering, and mathematics ample coverage in further education
(STEM) qualifications. There may also be inflows of
• electrification and plant;
colleges and universities to satisfy the
recruits from other sectors, such as highways, other
• signalling, systems and telecommunications; civil engineering sectors, power, utilities, software or HS2 demand within the supply chain.”
• track; and telecommunications but many will still require training
• traction and rolling stock. and ‘conversion’ to rail.
The table below shows levels of HS2 demand as a There are no specific ‘high-speed rail’ occupations
share of total rail engineering sector demand for each included either within the current workforce or in the
asset type. analysis of future demand. There will need to be a
level of upskilling and familiarisation to the high-speed
Across the four key asset types HS2 will account environment, but this has not been modelled.
for a significant share of overall sector demand.
This is driven by some very small numbers in some The analysis suggests that there is ample coverage in
occupations in the wider industry. further education colleges and universities to satisfy
the HS2 demand within the supply chain, as long as
HS2 demand as a share of total
investment in skills and apprenticeships is made now
Asset type rail engineering sector demand
in order to have the workforce exist when required.
Electrification and plant 48%
Signalling, systems
and telecommunications 26%
Track 27%
Traction and rolling stock 16%
HS2 | Building the skills to deliver HS2 17What are the impacts for the West Midlands?
As outlined in the demand section on Although all regions are forecast to see positive (excluding the UK), and they comprise 8% of the total
page 9, HS2 has a constant workforce demand average annual growth between 2020 and 2040, there construction workforce. Labour Force Survey (LFS)
of around 10,000 people in the West Midlands is some regional variation as shown in Figure 4, with 2019 data from the Office for National Statistics show
between now and 2027/28 – peaking at 11,000 the West Midlands region forecast to see the highest that between 2016 and 2018, there was a 28% decline
in 2025/26 due to the combined workforce on annual average labour demand growth in the UK. in the flow of non-UK construction workers entering
Phase One and Phase 2a. This is likely to heat up the labour market in this region. the UK. Brexit is likely to be a key driver behind this
decline. Going forward, new UK immigration laws and
Construction employment rose in all regions between In terms of mobility, 71% of construction workers in
the points-based system could further reduce the flow
2014 and 2019, in line with the national picture, but the the West Midlands work in the same region now as
of construction workers entering the UK. However, in
degree of employment growth varied among regions. previously and there is a greater proportion of workers
the West Midlands a smaller percentage of workers
The construction sector saw the strongest growth over currently working in the same region of their last site
are from the EU, compared with London and the South
2014-19, in the West Midlands at 2.6%. This is due to compared to the level reported in 2015, which suggests
East, suggesting that this will pose less of an issue.
the predominance of mega-projects in these regions, that the construction workforce has become less
particularly within the infrastructure and private mobile over the last few years. Four-fifths of migrant
housing sectors. construction workers in the UK were from the EU
Figure 4: Average annual employment change 2020 – 2024 for regions on the HS2 route
2.0%
1.8%
1.8%
1.6% 1.6%
1.6%
1.4% 1.3%
1.2% 1.2%
1.2%
1.0%
0.8%
0.6%
0.6%
0.4%
0.2%
0%
UK North West Greater South East Yorkshire East Midlands West Midlands
London and Humber
(Source: CSN, Experian)
HS2 | Building the skills to deliver HS2 18What are the impacts for London and the South East?
50%
As outlined in the demand section on page 9 – the Mobility is less of an issue for London and the South
workforces in London and the South East are at or East. In the South East, 38% of the workforce have
around their peaks from 2021/22 to 2024/25, before travelled to a neighbouring region for their latest job.
declining towards the end of this decade. The peak Unsurprisingly, a large volume of workers currently
for both regions is in 2022/3 and peaking at 8,900 for working in the South East cited London as their last site
London and 6,300 for the South East, respectively. of work (14%). The dynamic between the South East
The peak is earlier than the West Midlands as there is and London is also quite pronounced in the opposite of the construction
not the additional Phase 2a demand in the region. direction, with 16% of people currently operating in workforce in London was
London citing the South East as their previous site born outside the UK in 2019
8,900 6,300
of work. The East of England also holds a strong
relationship with London and the South East, with 31% Since half of London’s construction workforce was
of workers currently working in the East of England born outside the UK, recruitment could become more
peak workforce peak workforce citing London as their last site and 11% citing the challenging in London and the South East regions.
for London for South East South East as their last site. This suggests some fluidity Combining this with CITB’s recent mobility analysis,
between these three regions, which is different from which suggests that the construction workforce has
most other regions of the UK. become less mobile since 2015, HS2 will need to
Whilst construction growth in London between 2014
consider the potential impact on recruitment and
and 2019 was not as high as the West Midlands, it was The impacts of Brexit are likely to be felt more strongly
skill shortages.
still 1.8% in London (compared with 0.6% in the South in these regions. According to a Construction Industry
East), reflecting the predominance of mega projects in Training Board (CITB) study in 2019, employers in So, having outlined the likely skills issues, what
the capital, particularly within the infrastructure and London were significantly more likely to make use of interventions are HS2 and the supply chain looking at
private housing sectors. migrant workers, as were those who work primarily to meet these challenges and opportunities?
as subcontractors or for the public sector. The LFS
indicates that in 2019, 50% of the construction
workforce in London was born outside the UK (though
this is lower than the 2018 figure of 54%).
HS2 | Building the skills to deliver HS2 19Section 2 What skills and education interventions are already in place? HS2 Ltd’s commitment to the skills agenda is not new; we have had a team embedding SEE since the early days of the HS2 Programme and, as outlined in the 2018 SEE Strategy, have been pushing forward placing clear and strong requirements in major contracts, inspiring young people through educational outreach and working in partnership with key national, regional and local stakeholders for many years. This approach is to ensure that we have the people with the skills we need, but also lead a lasting skills legacy for the country. HS2 | Building the skills to deliver HS2 20
What skills and education interventions are already in place? continued
The SEE Team works proactively to support the SEE activities include:
supply chain to deliver on the skills, employment and The start of main works construction in 2020, and
education objectives of the Programme and facilitate Apprenticeships the Covid-19 pandemic and economic downturn
the sharing of best practice. have given this work new urgency. What is clear
is that there is no single silver bullet that will
All HS2 contracts of a certain value, duration and type ensure that we address the skills mismatches
are required to deliver SEE outputs. across a range of areas and provide opportunities
for those from traditionally disadvantaged and
The use of procurement levers is key in setting Workless job starts
under-represented groups to ensure we have a
expectations and driving the right behaviours to deliver
workforce that better represents the UK and the
outputs which will result in meaningful impacts for the
communities that HS2 serves.
communities that HS2 serves.
Instead we have needed, and will continue to
Working with over 35 major contractors, from main
Professional need, a broad range of interventions:
works civils joint ventures, station building contractors
to companies delivering land referencing services, status attainment
the SEE Team build positive working relationships to some regional specific others skills specific
maximise the impact of the contractors’ delivery of SEE
activities such as apprenticeships, workless job starts
and school engagement. Support for
Further Education
As well as working with individual contractors, HS2
Ltd also uses its convening power to bring contractors
within the supply chain together through a joint EDI/
SEE community forum. The forum meets regularly
to share best practice, how to work with local and Schools
regional stakeholders and give space to raise issues. Engagement
and others tailored
to specific under-
represented groups.
Work placements
HS2 | Building the skills to deliver HS2 21How is Job Brokerage at the heart of these interventions?
At the heart of HS2’s SEE goal has been the
ambition to deliver a Job Brokerage model, which Here’s how the HS2 Job Brokerage works
showcases the vacancies on the programme and
make it easier for those from under-represented
and disadvantaged groups to access the job Tier 1 Contractors
opportunities that the HS2 Programme provides. supply chain
In the current context of the Covid-19 pandemic,
it is even more important that HS2 demonstrates
Candidates Online vacancies
tangibly how it is actively supporting the economic
recovery of the UK – the Job Brokerage service does
this. With increased unemployment, particularly in
HS2 Jobs
under-represented groups such as young people,
those from ethnic minorities and people with
Send
disabilities, it is important to ensure that we are
targeting job opportunities and making them as
candidate
profiles Board Share
last-minute
directly
accessible as possible. Central platform for HS2 vacancies
vacancies available online
In January 2021, the HS2 Job Brokerage was launched
and this new service rolled out to job seekers.
Online vacancies Candidates
Job Brokerage
Partners
Referral
organisations
HS2 | Building the skills to deliver HS2 22How is Job Brokerage at the heart of these interventions? continued
HS2 Job Brokerage service is predicated on working Brought together through several Regional Steering
with organisations, called Job Brokerage Partners Groups, JBPs and contractors are designing
(JBPs). These are organisations whose purpose is to and delivering “routes into employment” for
provide employment support to help people into disadvantaged groups, which will help to meet HS2 Ltd has a crucial role to play in the
work, particularly people from disadvantaged and contractors’ recruitment needs, including those where UK’s economic recovery and fightback
under-represented groups. Job Brokerage Partners a skills mismatch has been identified. For example,
from Covid-19. We are creating and
include local authorities, charities, employment establishing sector-based work academy programmes,
support services and the Department for Work and working alongside Jobcentre Plus. Many of the sustaining thousands of jobs in the
Pensions’ (DWP) network of Jobcentres. JBPs identify other existing and planned interventions outlined UK starting right now, when people
suitable candidates for roles posted on the HS2 Jobs below will be enabled and facilitated by these strong need them most. Our new Job
Board and support individuals in applying for the relationships between HS2 Ltd, our supply chain and
Brokerage service is an important
vacancies. These organisations also find themselves regional stakeholders that the Job Brokerage enables.
at the forefront of economic recovery activities in step in simplifying the job search
1000
process, and ensuring individuals
+
their local areas. Each JBP convenes other smaller and
jobs have been
more niche organisations to provide pathways into
posted on the
receive guidance and support so that
work through a network of ‘referral organisations’
Jobs Board since pathways into employment on HS2
that have expertise in supporting certain groups,
some with protected characteristics. Examples include
its launch are accessible for all.”
organisations working with refugees, tenants in social
housing, people with disabilities and young people.
Kate Myers
The HS2 Jobs Board brings together vacancies from
Head of Skills, Employment
across the HS2 supply chain. It is a searchable jobs and Education, HS2 Ltd
board hosted on the HS2 Ltd website, accessible to
JBPs and job seekers. The HS2 Jobs Board can be found
here: hs2.org.uk/supply-chain-jobs
HS2 | Building the skills to deliver HS2 23How are we already addressing the need for specific skills?
As outlined in the challenges and opportunities Pre-employment training opportunities
sections, there are key skills where interventions An early example of such an intervention was in
have been, and will continue, to be needed. archaeology, where our Tier 1 Enabling Works
HS2 Ltd and our contractors, working with contractor LMJV, in conjunction with their sub-
I didn’t think I’d ever get the
partners, have already run a number of contractor MOLA Headland Infrastructure coordinated opportunity to explore a career
programmes targeting specific skills and training an innovative Archaeology Trainee Opportunity to in archaeology, as I don’t have an
needs in scarce skills areas such as archaeology support their recruitment needs, showcase their work academic background in the subject.
and plant operations which can be used as a to a wide audience, and enable access to all. In order to
model for future collaborative working and make way for the Curzon Street Station, Birmingham’s
Being selected to do the archaeology
examples of this work are detailed below. new high-speed rail terminus station, archaeologists traineeship, and to be linked to a
were painstakingly cataloguing and removing the project as huge as HS2 is just amazing.
remains of those interred in the Park Street burial I’m so pleased to be here.”
ground and the trainee archaeologists played an
important role in this. Training for the project was
delivered by Birmingham Metropolitan College (BMET),
using funding through the West Midlands Combined
Mick
Authority’s Construction Skills Gateway Pilot Project Trainee archaeologist,
and supported by Birmingham City Council, DWP MOLA Headland
and Prospects.
An information session was held at which 40 people
attended and were interviewed. 20 people were
selected for a two-week pre-employment programme
with BMET and progressed onto a further two-week
Trainee Archaeologist Gateway Programme to gain
their CSCS card, Level 1 H&S certificate and some
basic knowledge of archaeology. Ten people were
selected following interviews for a six-week paid
trainee opportunity working with MOLA Headland
Infrastructure on LMJV’s Park Street site.
HS2 | Building the skills to deliver HS2 24How are we already addressing the need for specific skills? continued
Outcomes after the project were as follows: Another example of skill specific intervention has
been the plant training offered by main works
• All 10 succeeded in their training and passed
contractor EKFB.
the course.
Major construction projects have come
• All 10 were offered further employment. EKFB joint venture is HS2’s construction partner for the
80km section of the railway between the Chilterns and
to the fore in Buckinghamshire and
• Five remained in Birmingham working on
Park Street. Warwickshire, including 15 viaducts, five kilometres will be crucial to the county’s economic
• Five were offered contracts in MOLA Headland
of green tunnels, 67 overbridges and 30 million cubic and jobs growth. This free training
Infrastructure working on Enabling Works contract metres of excavation. programme will form a key element
in Area South. Between May 2019 and March 2021, using CITB towards achieving this growth through
• All the trainees were supported by Prospects Construction Skills Fund investment, EKFB trained ensuring skills needs are met and job
to ensure they transitioned effectively into over 600 people to enable them to be ‘employment
employment, particularly the trainees moving
opportunities are fulfilled.“
ready’ through a mix of ‘entry to construction’ and
to London. plant operator training courses. The accredited
• The trainees came from diverse backgrounds, training programmes each lasted for one week and
ages, disability, and ethnicity but they were all able were delivered in partnership with local training Heather Dean
to access the training and have the opportunity providers, Apple Construction and Buckinghamshire Head of Business Support and Skills,
to progress. College Group. Buckinghamshire Business First
10/10 10/10
The free Plant Operator training course was accredited
by the Construction Plant Competence Scheme – the
industry-standard certification to prove the skills of
plant operatives. The training programmes consisted
trainees succeeded trainees were offered of a combination of both practical and theory-based
in their training and further employment training to provide participants with the entry-level
passed the course skills needed to work on a construction site.
EKFB worked with its delivery partners and supply
chain to support those that successfully completed
the free training programme with work placements.
Many now have the skills to fill employment
opportunities on the HS2 Programme or find work with
other construction companies.
HS2 | Building the skills to deliver HS2 25How are we already addressing the need for specific skills? continued
Apprenticeship development HS2 Ltd has supported other trailblazers, such as the
Construction Plant Operative (Level 2) and Corporate
Apprenticeships also have a hugely important role
Responsibility and Sustainability Practitioner (Level
to play in meeting the specific skills shortages as they
4). The Corporate Responsibility and Sustainability
offer employers the opportunity to grow their own
Practitioner standard was approved in May 2021
talent while offering people from a diverse range
and HS2 are looking forward to welcoming our first
of backgrounds the opportunity to learn as they
apprentice on this standard in September 2021.
earn. HS2 Ltd and our supply chain have proactively
established or supported employer groups on a HS2 Ltd, together with Network Rail and other
number of apprenticeship trailblazers. employers as members of the Rail Engineering
Trailblazer Group, are currently in discussions about
Working closely with the Institute for Apprenticeships
revising the structure of the Level 4 Rail Engineering
and Technical Education (IfATE), as a response to
Advanced Technician Standard and the Level 4 High
the significant requirements that a programme of
Speed Rail and Infrastructure Technician Standard to
the scale of the HS2 Programme places on scarce
better serve the needs of the industry through a single
skills, HS2 established the Land Referencer (Level 4)
overarching standard at Level 4. There currently is no
trailblazer, convening an employer group from across
Level 3 Rail Engineering Standard, which was retired by
the surveying and professional services sectors, with
the IfATE. The option to introduce a combined Level 3
valuable input from the National College for Advanced
Standard for National and High-Speed Rail still exists.
Transport and Infrastructure.
Current discussions are focused on the structure
and levels of standards required. Once this has been
agreed, a sub-group comprising representatives
from each rail sector, will move on to the detailed
design of the standards which is expected to start in
autumn 2021.
HS2 | Building the skills to deliver HS2 26How is HS2 addressing skills challenges and creating opportunities across the UK?
HS2’s supply chain opportunities stretch the HS2 has been working closely with local and regional
length of Britain – we have suppliers in every stakeholders to deliver interventions for local people
region. There are over 2,000 UK businesses which and communities. It is vital that we continue to work
have delivered work on HS2; over 65% of them in partnership to maximise the opportunities that the The Operator Skills Hub will play a vital
are small and medium sized enterprises and 97% programme offers. role in ensuring local people have the
of our supply chain is UK registered. HS2 Ltd’s Below are some examples of the work that has already opportunity to upskill in readiness for
supply chain team runs regular engagement and started to address the skills challenges and provide local these employment opportunities on
procurement events with businesses across the opportunities across the country.
country about the opportunities to win work.
Britain’s new railway.”
Working across the UK
2,000
Companies awarded contracts with HS2 are based all
+ UK businesses
have delivered
over the UK. For example, slab track contractor, PORR UK,
is establishing a new, purpose-built factory near Shepton
Mallet in Somerset. The contract will create hundreds
Mark Thurston
Chief Executive Officer, HS2 Ltd
work on HS2 of jobs in collaboration with Aggregate Industries UK.
Slab track units will be manufactured in the factory,
65% 97%
believed to be the first facility of its kind in the UK.
HS2 Ltd’s SEE Team will work with the PORR UK team
to support them to deliver their skills, employment and
education outputs and maximise the economic benefits
of them are small of HS2’s supply chain to the local area.
and medium is UK registered
sized enterprises
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