A shortage of skilled construction workers is jeopardising ambitious ministerial targets to build millions of homes, revamp schools and deliver on time Olympics’ facilities, a leading industry body has warned. 'Large bonuses have been offered by some businesses to attract workers with the required key skills,' the Chartered Institute of Building said after it surveyed more than 1,200 companies. Financial Times

More than nine in 10 employers reported skills shortages in construction, the tightest of which were in skilled manual trades, where four in 10 said positions were 'very difficult' to fill. The next most severe shortage was in senior management.

Almost six in 10 companies predicted the situation would worsen this year, with only 35% expecting it to improve. Construction output is to grow by about 11% by 2011, the study said.